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Impact of the Expiration of the SLCP Subsidy on Farmers’ Income and Subjective Well-Being: Evidence from Hebei Province, China

Author

Listed:
  • Chen Chen

    (Beijing Forestry University)

  • Xiao Zhang

    (Nanjing Agricultural University
    Kyushu University)

  • Yanlu Shi

    (Beijing Forestry University)

  • Xue Yao

    (Beijing Forestry University)

  • Liqun Wang

    (Beijing Forestry University)

Abstract

Exploring the impact of the expiration of the first round of subsidies in China’s sloping land conversion program (SLCP) on farmers’ income and subjective well-being (SWB) provides important empirical evidence for improving SLCP follow-up policies, improving farmers’ livelihood and formulating payment for ecosystem services (PES) in other developing countries. Based on cross-sectional data covering 473 farmers who participated in the first round of the SLCP in Hebei Province, China, this study uses an endogenous switching regression model (ESRM) and a mediation model to empirically investigate the impact of the expiration of the SLCP subsidy on farmers’ income and SWB. The main results are as follows. First, the expiration of the SLCP subsidy increased farmers’ overall income levels. Second, it decreased farmers’ SWB. Third, farmers’ income had a mediating effect on the relationship between the expiration of the SLCP subsidy and farmers’ SWB. Fourth, compared with high-income farmers, the expiration of the SLCP subsidy had a stronger negative impact on low-income farmers’ SWB, and the mediating effect of income was more obvious. Therefore, the relevant departments should broaden the number of income channels available to SLCP participants, strengthen their ability to earn income, promote the organic combination of the achievements of the SLCP and SLCP participants’ SWB, and improve SLCP follow-up policies.

Suggested Citation

  • Chen Chen & Xiao Zhang & Yanlu Shi & Xue Yao & Liqun Wang, 2024. "Impact of the Expiration of the SLCP Subsidy on Farmers’ Income and Subjective Well-Being: Evidence from Hebei Province, China," Journal of Happiness Studies, Springer, vol. 25(1), pages 1-24, February.
    • Handle: RePEc:spr:jhappi:v:25:y:2024:i:1:d:10.1007_s10902-024-00709-y
    DOI: 10.1007/s10902-024-00709-y
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