Influence of rural households' livelihood capital on income derived from participation in the Forest Carbon Sequestration Project: a case from the Sichuan and Yunnan Provinces of China

Abstract

We analyze survey data collected from interview of 367 randomly selected rural households from the Sichuan and Yunnan provinces of China to assess the influence of rural households' livelihood capital (physical, financial, human, natural, and social capital) on their income from participation in the forest carbon sequestration project. The project is implemented under the Climate, Community, and Biodiversity standards. Results show that, with regional differences controlled, natural capital and physical capital have a positive and statistically significant influence, whereas the human capital, financial capital, and social capital of rural households have a negative and statistically significant influence on their income from participation in the project.