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Economic development and conservation impacts of China's nature reserves

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  • Cheng, Audrey T.
  • Sims, Katharine R.E.
  • Yi, Yuanyuan

Abstract

Protected areas are a dominant but contentious instrument of conservation policy. Restrictions on resource extraction and land use constrain livelihoods but may also support alternate pathways to development through sustainable use, tourism, and landscape amenities. We investigate the economic development and environmental impacts of China's Nature Reserves using county-level panel data between 1980 and 2010. We find small positive impacts on an aggregate household development index and that Nature Reserves maintained natural land cover within their boundaries. We also find employment shifts from resource-extractive to service-based activity, but an overall negative impact on reported employment. Household development gains and shifts towards service-based employment were greater closer to locations that were already more developed and had higher baseline assets. These results indicate both the promise of protected areas as a sustainable development strategy and the need for institutional mechanisms to ensure that local benefits and employment opportunities are broadly distributed.

Suggested Citation

  • Cheng, Audrey T. & Sims, Katharine R.E. & Yi, Yuanyuan, 2023. "Economic development and conservation impacts of China's nature reserves," Journal of Environmental Economics and Management, Elsevier, vol. 121(C).
    • Handle: RePEc:eee:jeeman:v:121:y:2023:i:c:s0095069623000669
    DOI: 10.1016/j.jeem.2023.102848
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    References listed on IDEAS

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    1. Aparna Howlader & Amy W. Ando, 2020. "Consequences of Protected Areas for Household Forest Extraction, Time Use, and Consumption: Evidence from Nepal," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(4), pages 769-808, April.
    2. Yuanyuan Yi & Fredrik Carlsson & Gunnar Köhlin & Jintao Xu, 2023. "Allocative efficiency or misallocation of resources? The emergence of forestland rental markets and the forest devolution reform in China," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(2), pages 395-420.
    3. Fan, Maoyong & He, Guojun & Zhou, Maigeng, 2020. "The winter choke: Coal-Fired heating, air pollution, and mortality in China," Journal of Health Economics, Elsevier, vol. 71(C).
    4. Feng, Shuaizhang & Hu, Yingyao & Moffitt, Robert, 2017. "Long run trends in unemployment and labor force participation in urban China," Journal of Comparative Economics, Elsevier, vol. 45(2), pages 304-324.
    5. Judith Schleicher & Julie G. Zaehringer & Constance Fastré & Bhaskar Vira & Piero Visconti & Chris Sandbrook, 2019. "Protecting half of the planet could directly affect over one billion people," Nature Sustainability, Nature, vol. 2(12), pages 1094-1096, December.
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    Cited by:

    1. Reynaert, Mathias & Souza-Rodrigues, Eduardo & van Benthem, Arthur A., 2024. "The environmental impacts of protected area policy," Regional Science and Urban Economics, Elsevier, vol. 107(C).
    2. Wang, Wen & Pan, Qi, 2025. "The enduring effects of China’s Payments for Ecosystem Services: Short- and long-term industrial transformations," Journal of Environmental Economics and Management, Elsevier, vol. 130(C).
    3. Qu, Xinwei & Tian, Mingfu & Zhang, Linbo & Huang, Hongyun & Sun, Di & Song, Malin, 2025. "Energy structural change towards net-zero economy: What can we learn from carbon finance initiatives in China?," Energy Economics, Elsevier, vol. 144(C).
    4. Li, Xiuqing & Xiao, Liming, 2024. "The impact of urban green business environment on FDI quality and its driving mechanism: Evidence from China," World Development, Elsevier, vol. 175(C).
    5. Shilei Liu & Jinlei Qi & Jintao Xu & Yuanyuan Yi & Peng Yin & Maigeng Zhou, 2024. "Forest Mitigates Short-Term Health Risk of Air Pollution: Evidence from China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(8), pages 2163-2204, August.
    6. Lee, Chien-Chiang & Yuan, Zihao & Kang, Yongchao, 2024. "Green finance and land ecological security: A potential mechanism for sustainable development," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1222-1241.
    7. Shah, Wasi Ul Hassan & Sarfraz, Muddassar & Yasmeen, Rizwana, 2025. "Unveiling the impact of natural energy resources depletion on energy industry productivity in top 10 economies: Moderating role of FinTech," Energy, Elsevier, vol. 315(C).

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    Keywords

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    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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