The Economic Welfare Effect on Rural Areas of Grain to Green Project in Comparative Perspective: An Empirical Study Based on 79 Counties in Shaanxi Province
Research has shown that the Payment of Grain to Green Project (GTGP) steadily improved the income level of the involved farmers,however,the reported satisfaction from farmers is low on compensation level of the project,overall income and living standard of themselves.This deviation could motivate the involved farmer to withdraw from the project and restore the land back to cultivation,thus jeopardize the long term effect of the GTGP.To address this problem,we first formulated the economic welfare function for the GTGP areas with a comparative perspective.Then,the deviation between income improvement and reported satisfaction was analyzed by investing the change rate of the utility function.Finally,the formulated theoretical framework was tested on the data obtained from 79 counties in Shaanxi province.The comparison factors that have been taken into account include income comparison between rural and urban areas (R-U comparison),GTGP areas and non-GTGP areas (R-R comparison),present and past(habituation).Our results shown that farmers in the GTGP area has less income and the income gap between rural and urban areas is larger as compared to the non-GTGP area.These results also suggest that R-U comparison and R-R comparison hinders the increase of economic welfare in GTGP counties.
rural economyGrain to Green Project(GTGP)PESeconomic welfarerelative deprivationrelative incomepropensity score matching