Regulation Intensity, Freedom of Production Decision and the Poverty of Farmers: Evidence from the Panda Nature Reserves in China

Chao Lin,Lan Gao

doi:10.3390/f12111528

Abstract

The harmonious coexistence between human and nature is a topic of general concern. Existing studies generally agree that the establishment of nature reserves can effectively protect biodiversity, but less attention has been given to the effects of the regulation implied therein upon the multidimensional poverty of surrounding farmers. This paper verified the effects of regulation intensity upon the multidimensional poverty of farmers at the two levels of theory and empirical evidence from the perspective of freedom of production decisions based on the research data involving farmers around the Panda Nature Reserves (PNRs) in China. We have found that regulation intensity will significantly increase the multidimensional poverty of farmers. Heterogeneity analysis indicates that the regulation of agricultural production and the regulation of pollutants will produce a significant positive effect on the multidimensional poverty of farmers. The inherent mechanism is that regulation affects farmers’ freedom of production decisions, thereby worsening the state of their multidimensional poverty. The conclusion of this paper not only contributes to expanding the theoretical studies on regulations and the multidimensional poverty of farmers but also offers suggestions on how the Chinese government can strike a balance between ecological protection and the prosperity of farmers.

Highlights

The elimination of poverty is a focus of the whole world
The essence is that the higher the regulation intensity, the more deprivation of the production rights of surrounding farmers, which affected the freedom of production decisions and dampened the production enthusiasm of the surrounding farmers, thereby causing the farmers to reduce the supply of agricultural production and fall into multidimensional poverty
Our study found that regulation intensity has significantly increased the multidimensional poverty of the farmers

Summary

Introduction

The elimination of poverty is a focus of the whole world. China has made achievements in the elimination of absolute poverty, which have attracted global attention and have been highly recognized by international organizations [1], such as the World Bank. According to the calculation based on the existing Chinese standard for rural poverty, the poverty count of China was 770.39 million in 1978 and the poverty incidence was 97.5%. By the end of 2019, the poverty count was reduced to 5.51 million and the poverty incidence was merely 0.6%. The elimination of absolute poverty does not mean a thorough solution to poverty. Poverty can be classified into three kinds: absolute poverty, relative poverty, and social exclusion. Relative poverty means individuals lack or have difficulty obtaining the resources necessary for their daily life. Social exclusion underlines the integration of individuals with society as a whole [2]. Relative poverty and social exclusion have not yet been solved, which means poverty reduction has entered a new stage in China

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Results

Discussion

Conclusion