Participation, income growth and poverty alleviation in payments for ecosystem services: The case of China's Wolong Nature Reserve

Abstract

Through the case of Payments for Ecosystem Services (PES) in China's Wolong Nature Reserve, this study investigates the effect of PES participation on income growth and the role of non-agricultural employment and education investment. In addition, this study also examines the differences in this effect caused by income inequality and land property inequality. By drawing on a large amount of literature that conceptualises poverty alleviation as one of the multiple goals of PES, this study opens up our view on the complex relationship between PES participation and income growth. The findings demonstrate that increased PES participation can promote income growth. In addition, PES participation in promoting income growth is more beneficial to small and medium farmers than large farmers. However, this promotion effect can also exacerbate economic inequality. Finally, PES participation in promoting income growth mainly depends on improving non-agricultural employment rather than increasing education investment.