National Key Ecological Function Zones and the Market Entry of Ecological Enterprises

【Authors】

LIU Jingran, LIU Yinan

【WorkUnit】

LIU Jingran, LIU Yinan (Capital University of Economics and Business, 100070)

【Abstract】

The National Key Ecological Function Zones (NKEFZs) aim to conserve ecosystems and enhance the value of ecosystem goods and services, which is essential for the value realization of ecosystem goods and services. In practice, these zones are leveraging their unique ecological resources to develop new business models for ecosystem goods and services, thereby accelerating the realization of their value. However, they commonly face challenges in this process, including a lack of diverse business models and difficulties in commercializing ecosystem goods and services. Ecological enterprises are the key actors in driving this value realization. Therefore, how to attract and nurture ecological enterprises to convert the ecological advantages of NKEFZs into industrial competitiveness and accelerate the commercialization of ecosystem goods and services is a significant challenge for policymakers.
Establishing a sound mechanism for realizing the market value of ecosystem goods and services to transform ecological advantages into new economic drivers is an important issue that Chinese scholars urgently need to resolve at this stage. However, previous research has rarely examined how ecological function zones promote the value transformation of ecosystem goods and services. This study addresses this gap by developing a neoclassical saddle-path theoretical model to explore the phase-out path of ecological governance policies and to analyze the dialectical relationship between the urgent development needs of NKEFZs and the long-term cultivation of green development drivers. Using data from 1,978 Chinese counties from 2002 to 2019, the paper constructs leading indicators for the market entry of ecosystem goods and services, estimates the impact of NKEFZs on market value realization, and explores underlying mechanisms, thus expanding research on such zones.
Theoretical analysis shows that NKEFZs are essential for realizing the market value of ecosystem goods and services. As the green economy expands and ecological restoration effects materialize, the fiscal input for ecological governance can be gradually reduced, thereby leveraging the two-sector economy’s comparative advantages for higher-level development. Empirical results show that NKEFZs significantly drive the emergence of new green economic models. Further study shows that the green industrial incentive policies and the policy of enhancing ecological protection and restoration in NKEFZs crucially support the market entry of ecological enterprises. This effect is more pronounced in regions with well-developed external markets and infrastructure.
These findings offer key policy implications for optimizing China’s ecological governance policy system. First, prioritize ecological protection strategically by accelerating major ecosystem conservation and restoration projects, strengthening local governments’ green performance evaluation, and using fiscal policy to support the market entry of ecological enterprises. Second, set clear environmental and market entry standards for new green economic models, establish a certification and evaluation system for ecosystem goods and services, and build trading platforms for resource rights and interests to boost ecological enterprises’ income. Third, accelerate the construction of infrastructure linking ecological function areas and urban areas, promote industrial collaboration plans, and develop “ecological corridors” for regional complementarity. Last but not least, create a valuation framework for ecosystem goods and services and incorporate it into the national economic accounting system and local performance assessments. This will ensure the steady supply of high-quality ecosystem goods and services, transform advantageous ecological resources into new green growth drivers, and provide strong support for the Beautiful China Initiative.

JEL: Q57, E62, O44

【KeyWords】

Key Ecological Function Zones, Market Value of Ecosystem Goods and Services, Ecological Governance Policy, New Classical Saddle Path