The ecological and economic impacts of national park pilot projects in China

This study provides nationwide evidence of the ecological and economic effects of China's National Park pilot projects. It compiles comprehensive datasets at the county level, including land use types, NDVI, NPP, nighttime light intensity, reported GDP, rural income and a range of other socioeconomic indicators such as employment, consumption levels and outstanding bank loans. Using a difference-in-differences approach, we find that turning already-existing protected areas into National Park (NP) pilots promotes ecological conservation. On the other hand, NP pilots have led to a decline in local economic growth, as indicated by nighttime light intensity, GDP and outstanding bank loans. Despite slower economic growth, we find no evidence that NP pilots negatively affect per capita rural incomes and consumption levels. Our data allow us to explore specific mechanisms through which NP pilots slow local economic growth. This economic effect appears to be driven by restrictions on construction land expansion and adverse impacts on both new and existing firms. The null effects on rural income and consumption level can be explained by a relative decline in rural inhabitants in the treated counties.