China has continuously stepped up its efforts to protect the ecological environment of the Ganjiang River Basin. The government has played a leading role, but the residents, who have also played an important role in this issue, are often overlooked. Consequently, it is necessary and urgent to study the willingness of the residents, who are the direct stakeholders, to pay for the protection of the ecological environment of the Ganjiang River Basin. Based on a survey of 773 households, this study examines the downstream residents’ willingness to pay (WTP) and their payout levels. Using the payment card (PC) contingent valuation method (CVM), we measure the payment probability of the downstream residents and the amount they are willing to pay. Additionally, Heckman’s two-stage model is adopted for exploring the influencing factors of the surveyed residents’ WTP and payout levels and avoiding the possible presence of sample selection bias. The results showed that 75.03% of the surveyed residents are willing to pay for ecological compensation in the Ganjiang River Basin. The downstream residents are willing to pay an annual average amount of about $47.62/household for ecological compensation. The factors that significantly influence their WTP include the educational background, work type, residential location, and water quality and quantity. In the case of payout levels, the influencing factors include the education background, work type, household annual disposable income, and water quality and quantity. In addition, the factor of value recognition is marginal and significantly related to WTP and payout levels. The results of this empirical study have important policy implications and recommendations that the government should intensify its propaganda about the ecological value, increase investment in education, and establish a variety of ecological compensation payments, in order to protect and improve the ecological environment of the Ganjiang River Basin.

Watershed environments play an important supporting role in sustainable high-quality economic development in China, but they have been deteriorating. In order to solve environmental problems in the Poyang Lake River Basin brought about by economic development, the Jiangxi Provincial Government promulgated relevant river basin protection policies in 2015. However, after several years of this policy, the specific effects of its implementation are a matter of general concern to the government and academic circles. After years of policy implementation, the implementation effect of the watershed ecological compensation policy needs to be evaluated. Based on 4248 observations from the Jiangxi and Hunan Provinces, we adopt the difference-in-difference method to analyze the impact of the ecological compensation policy on the Poyang Lake River Basin. The empirical results show that the ecological compensation policy has a significant effect on water-quality improvement. Water quality in the upstream area is better than that in the downstream area; areas with small administrative areas have a smaller population, which in turn leads to better water quality in the river basin; and the higher the per capita GDP, the worse the water quality. Our results highlight the need for the following policy improvements: ecological priority, customizing measures to local conditions, tracing the main body, and strengthening supervision.