Effect of marine ecological compensation policy on coastal water pollution: Evidence from China based on a multiple period difference-in-differences approach

Abstract

With the development and utilization of marine resources, coastal water pollution has become increasingly prominent. The marine ecological compensation (MEC) is a key measure to balance the utilization of marine resources and the protection of marine environment. This paper attempts to explore the governance effect of MEC policy on coastal water pollution. Based on panel data of coastal cities in China from 2006 to 2020, a multiple period difference-in-differences (DID) model is used to estimate the impact of MEC policy on coastal water pollution. The research results show that the coastal water pollution has decreased significantly in the polit cities after implementing the MEC policy. The governance effect of MEC policy on coastal water pollution will last for three year and cover areas within a geographical distance of 200 km. The transmission mechanisms of MEC policy on coastal water pollution are the reduction of land-based sewage, marine technological progress and optimization of industrial structure. Further, this paper provides operational suggestions for strengthening the governance effect of MEC policy on coastal water pollution.

Keywords: Coastal water pollution; Difference-in-differences; Marine ecological compensation; Policy evaluation; Spatial spillover.