An Estimation Of The Effects Of China's Sloping Land Conversion Program On Farmers' Permanent Income And Consumption

Since 1999, the Chinese Government initiated a new program of ecological restoration and resource development, which named the Sloping Land Conversion Program (SLCP). In addition to improving the environmental and resource conditions, a frequently reiterated goal of SLCP is to discuss why looking at rural household income impacts might be an important part of forest program evaluation. Thus, an interesting and important question is: How has implementing the PFPs affected the farmers'permanent income and consumption?This paper addresses this question using simultaneous equations models and a panel dataset that covers 1921 households in 6 provinces for 14 consecutive years (1995-2008).The empirical evidence indicates that the SLCP has made positive impact on farmers'permanent income and Consumption.However, the SLCP has made a mixed effect on farmers'food consumption due to the change of land structure. The impact on cash consumption is positive, but on own consumption is negative.