The Enhancement of the Horizontal Ecological Protection Compensation Mechanism in the Yu-Lu Section of the Yellow River Basin

Horizontal ecological compensation represents a significant institutional innovation aimed at advancing ecological civilization and serves as a key functional strategy within China’s current management framework. This paper employs the horizontal ecological protection compensation agreement of the Yu-Lu section of the Yellow River Basin as a case study. Using a game theory model and theoretical analysis, the paper explores the underlying connotations, theoretical foundations, and legal characteristics of the basin’s horizontal ecological protection compensation mechanism. This analysis reveals several challenges within the existing horizontal ecological protection compensation system in the Yellow River Basin, including the predominance of a single compensation entity, unclear compensation standards, a compensation model limited to monetary transfers, and the absence of an effective dispute resolution mechanism. This paper further examines potential improvements to the horizontal ecological protection compensation framework in the Yellow River Basin from a legal system perspective, with the aim of addressing these practical challenges and fostering the region’s ecological, environmental, and economic development.