Promoting the realization of ecological product value through ecological compensation: Empirical evidence from the transfer payments for China's National Key Ecological Function Zones

As a representative ecological compensation policy in China, the Transfer Payment for National Key Ecological Function Zones (TPNKEFZ) has been shown to affect both environmental performance and regional economic development. However, the quantitative impact of TPNKEFZ on the realization of ecological product value—as well as its underlying transmission mechanisms—remains underexplored in existing literature. This study evaluates the conversion efficiency of ecological product value (CEEPV) in China's National Key Ecological Function Zones (NKEFZs) from 2001 to 2020, revealing a “decline-then-rise” trend in CEEPV across NKEFZs, with the introduction of TPNKEFZ marking a turning point. The CEEPV of NKEFZs exhibits high-high clustering characteristic, with high CEEPV value are concentrated in Biodiversity Maintenance Zones, while low CEEPV value are found in Windbreak and Sand-Fixation Zones. The CEEPV demonstrates significant positive spatial spillover effects within NKEFZs. TPNKEFZ not only enhances the CEEPV of targeted regions but also benefits neighboring areas. These effects vary across zone types: the most notable improvements occur in Biodiversity Maintenance Zones, while no significant changes are observed in Water Source Conservation Zones or Windbreak and Sand-Fixation Zones. These findings validate the effectiveness of ecological compensation policies and offer targeted strategies for realizing the ecological product value in ecological functional zones. Furthermore, it provides fresh evidence from China for the ongoing global debate on the environmental protection and economic development. • The ecological compensation policy of TPNKEFZ has improved the CEEPV in NKEFZs. • There are significant positive spatial agglomeration characteristic and spatial spillover effects of the CEEPV in NKEFZs. • The TPNKEFZ exhibits heterogenous effects across different types NKEFZs, needing targeted strategies for enhancing the CEEPV.