Does the establishment of nature reserves increase rural residents' income? Empirical evidence from China based on PSM-DID

Clarifying the impact of nature reserves on rural residents' income is of great significance to the organic integration of environmental protection and rural residents' income improvement. Based on the panel data of 600 counties from nine provinces in China, ranging from 2010 to 2019, this study employs the quasi-experimental method of Difference in Difference and Propensity Score Matching (PSM-DID) to examine how rural resident's income is influenced by the establishment of nature reserves. It is found that (1) Nature reserves, with a positive impact on rural resident's income, bring more earnings to the rural residents. (2) The impact varies with the heterogeneity of natural reserve types. That is, national and natural parks can increase rural residents' income, while the ones with wildlife or remote desert ecosystem play a limited role. (3) The increased income is mainly originated from the development of tourism, the improvement of facilities and the enhancement of ecosystem services. On this basis, multiple methods are proposed to promote rural residents' income and livelihood security of local communities. Policy recommendations are brought forth as well, including the focus on guaranteeing the livelihood security of rural residents nearby nature reserves where wildlife and remote desert ecosystem are protected.

Automated summary

Clarifying the impact of nature reserves on rural residents' income is crucial for integrating environmental protection and improving rural livelihoods. This study, based on panel data from 600 counties in nine provinces of China, investigates the influence of nature reserves on rural residents' income using the quasi-experimental method of Difference in Difference and Propensity Score Matching. The findings indicate that nature reserves have a positive impact on rural residents' income, with national and natural parks contributing more to income growth compared to wildlife reserves or remote desert ecosystems. The increased income is primarily derived from tourism development, improved facilities, and enhanced ecosystem services. Based on these findings, various methods are proposed to promote rural residents' income and ensure livelihood security in local communities, along with policy recommendations to prioritize the livelihood security of rural residents near wildlife reserves and remote desert ecosystems.