Practical Dilemma and Innovative Path of Ecological Compensation Mechanism in Watershed Governance-Taking Yangtze River Economic Basin as an Example

In the background of ecological pressure continues to increase, the problem of water pollution is escalating, and state to green and sustainable development attaches great importance. Watershed management has gradually been emphasized, and ecological compensation mechanism is widely used, but various problems have been encountered in the actual application process. This paper takes the Yangtze River Economic Zone as an example, reveals its importance in watershed governance, and takes the Yellow River as a comparison, highlighting the special characteristics of the ecological compensation mechanism in it. Meanwhile, it explores the challenges of unclear property rights, difficult cross-provincial cooperation, serious government dependence, and difficult value accounting, at the same time, analyzes the reasons behind their emergence. In order to cope with the challenges, this paper combines the actual situation and the literature from various parties and puts forward the methods of refining accounting the process, screening the scientific indicators, constructing a standard compensation accounting model, and introducing the market forces to play the role of the trading of water rights and green finance. The above suggestions aim to optimize the operation mode and improve the implementation efficiency, streamline the operation cost in order to stimulate the vitality of all parties.