Impact of Ecological Compensation on Farmers’ Livelihood Strategies in Energy Development Regions in China: A Case Study of Yulin City

Abstract

Ecological compensation affects farmers’ livelihoods, as well as sustainability and social equity. Yulin City is the core area of the energy “Golden Triangle” in China. The farmers livelihood strategy model was used to analyse data from a household survey and interviews with selected farmers. The paper analyses the current livelihood strategies of farmers and impact of ecological compensation from the perspective of participation and income. The results showed that: (1) the significant difference between the coal resource development and oil and gas resource development was agricultural planting. Migrant work and non-agricultural self-employment in the coal resource development region were higher than that of the oil and gas resource development region. (2) The income from agricultural planting in the coal resource development region was significantly lower than that of the oil and gas resource development region. The labour, non-agricultural self-employment, and transfer incomes were higher in the coal resource development region than that in the oil and gas resource development region. (3) Ecological compensation has a significant negative effect on participation and income from agricultural planting, as well as a positive effect on participation and income from non-agricultural self-employment. We have proposed measures to strengthen ecological compensation mechanisms and improve the farmers’ livelihoods, in order to inform decision-making and high-quality sustainable development in energy development region.