The impact of environmental regulation on farmers' income: an empirical examination based on different sources of income.

Abstract

This study uses Chinese rural household data to examine the relationship between environmental regulation and farmers' income. The study found that environmental regulation has the most apparent promotion effect on farmers' agricultural production income. However, the effects on self-employment and non-farm employment are insignificant. In addition, the increase in agricultural green total factor productivity is a channel for environmental regulation to promote agricultural production income. The stronger the farmers' awareness of environmental protection, the more significant the effect of environmental regulation on agricultural production income increase. In China, the effect of environmental regulations on farmers' income from agricultural production is most significant in the central region, followed by the eastern region. In the western region, environmental regulations do not affect agricultural production income. Finally, we discuss the different impacts of industrial and agricultural environmental regulations on farmers' income. Results show that agricultural environmental regulation affects agricultural production income. By contrast, industrial environmental regulations affect farmers' self-employment and non-farm income.