Wetland conservation, ecotourism and farmers′ income: A case study of Lashihai Wetland in Yunnan, China

Abstract

The conflict between ecological conservation and economic development is a common concern for the developing countries. In recent years, the Chinese government has carried out large-scale ecological conservation initiatives, but assessments of the economic effects of these initiatives have mainly focused on forest and grassland conservation, with little attention paid to wetland conservation. This paper provides some empirical evidences to understand the economic impact of wetland conservation in a region where development has been constrained by wetland conservation. The paper selects a typical highland wetland in Yunnan Province and uses propensity score matching (PSM) and difference in difference (DID) to examine the long-term dynamic effects of wetland conservation on farmers′ income and ecotourism livelihoods based on the local policy of the Farmland to Wetland Conversion Program (FWCP), and further discusses the heterogeneity of policy effects and the role of compensation funds in wetland conservation. The results show that: (1) the FWCP has a significantly positive impact on the farmers′ income, increasing per capita income by about 40% and promoting the development of eco-tourism livelihoods. (2) As time goes by, the role of the FWCP in promoting farmers′ income and ecotourism has continued to increase. Under the combined effect of multiple factors, the farmers achieved long-term income growth through livelihood transformation. (3) The FWCP has obviously heterogeneous effects. Among different income groups, low-income and high-income groups have the most obvious income-increasing effect, while the impact on ecotourism by the FWCP is mainly reflected in high-income groups, so there may be a risk of exacerbating local income inequality. In addition, the closer to the wetland resources, the more farmers tend to increase their income by developing ecotourism. (4) Compensation funds have a dual role in wetland conservation. Not only does it act as a safety net to maintain farmers′ incomes from decreasing in the early stages of conservation action, but it also serves as seed money to stimulate market and induce social capital participation, further supporting the development of ecotourism. The findings of this paper can provide new empirical evidence for the coordinated development of wetland conversation and socio-economics.