How environmental fairness concerns impact the effectiveness of watershed ecological compensation mechanisms?

Abstract

Environmental fairness concerns involve the equitable distribution of resources and benefits among stakeholders, which is crucial in watershed ecological compensation (WEC) mechanisms. This study presents a Nash bargaining-based cost-sharing model led by the WEC-investor, exploring three scenarios of fairness preferences: held solely by the supplier, solely by the investor, and jointly by both. Subsequently, variations in pollution control efforts, compensation ratio, and stakeholder profitability across these scenarios are comprehensively compared and analyzed. A real-case study is employed to validate the model and assess scenario-specific outcomes. Results indicate that mutual fairness recognition enhances pollution mitigation, economic performance, and compensation stability. In contrast, unilateral fairness consideration risks coordination breakdowns and free-rider behaviors, weakening environmental and economic results. Furthermore, moderate fairness fosters cooperation and efficiency, while excessive emphasis on fairness may undermine economic viability, particularly for profit-sensitive actors. Findings offer actionable insights for refining WEC frameworks and emphasize the role of fairness in promoting integrated, sustainable governance at broader scales.