Willing or Not? Rural Residents’ Willingness to Pay for Ecosystem Conservation in Economically Underdeveloped Regions: A Case Study in China’s Qinling National Park
1. Introduction
Establishing national parks in protected areas has proven effective in alleviating the conflicts between human activities and natural ecosystems in the short term, as well as in achieving ecosystem conservation in the long run [1,2]. The Qinling Mountains, located in an economically underdeveloped region of Northwestern China, are recognized for their ecological significance. Consequently, the proposal to establish China’s Qinling National Park (CQNP) has been approved to conserve the ecosystem and achieve sustainable development. Hence, it is essential to investigate residents’ willingness to participate in and pay for the ecosystem conservation of CQNP for the purpose of implementing payments for ecosystem service (PES) programs in the future. The contingent valuation method (CVM), one of the most widely used non-market valuation methods, is currently the only valuation method that can estimate both the use and non-use values of an ecosystem [3,4,5]. This study adopts the CVM to investigate residents’ willingness to participate in and pay for the ecosystem conservation of CQNP, and further explore how residents’ social trust, socioeconomic status (SES), and cultural preferences affect their willingness to participate and pay.
National parks are a critical measure for promoting ecological environments’ protection and preservation. Through strict protection and limited human activity, the overall ecosystem within the national park area could be restored and elevated. The root cause of severe ecological and environmental issues is humans’ ignorance of the use and non-use value of natural resources [6]. A national park is defined as a broad natural area aimed at protecting wide-ranging ecological courses, species, and ecosystems, which also provides opportunities for recreation, education, and scientific research to the public [7]. Since the establishment of Yellowstone National Park in 1872, the first national park in the world, national parks have become an effective means of preserving natural resources and protecting biodiversity. The establishment of national park holds great significance in promoting the equilibrium between regional economies, ecosystems, local governments, and other stakeholders through various PES programs [8,9,10,11,12].
On 19 October 2021, the National Park Authority approved the establishment of CQNP [13] to reconcile the conflicts between economic development and ecosystem protection in the region, with the aim of building PES programs such as central and local government funding, financial compensation, and the promotion of developing ecological agriculture and ecotourism to compensate for local residents’ economic losses and sacrifices towards ecosystem conservation. At the moment, both central and local governments in China provide funding, as well as financial and other forms of compensation, to local residents through different PES programs. However, without prior investigation, it is difficult to determine these amounts scientifically. This study investigates residents’ willingness to pay for ecosystem conservation to investigate the amount available for future PES programs in CQNP.
The Qinling Mountains, referred to in this paper in the narrow sense as the region of the Qinling Mountains within Shaanxi Province, are a vital water source for the central route of the South–North Water Transfer Project in China and are of significant geographical and ecological importance to the region. The central route of the water transfer project has benefited over 85 million residents of China [14]. Located in Shaanxi Province, an economically underdeveloped region in Northwestern China, the mountains act as a watershed for the Yangtze River and the Yellow River and are considered a climate divide between northern and southern China [15]. Meanwhile, the Qinling Mountains also have several essential ecological functions in the region, such as water and soil conservation, climate regulation, and biodiversity conservation [16]. The formation of CQNP is primarily aimed at restricting development and preserving the water resources in the Qinling Mountains, which cause conflicts between conservation and development. Therefore, the implementation of additional PES programs is required to alleviate these potential conflicts. According to the National Bureau of Statistics (data source: National Bureau of Statistics: https://data.stats.gov.cn/index.htm (accessed on 19 October 2023)), the GDP of Shaanxi in 2022 ranked 14 out of 31 in China and the population of Shaanxi in 2022 was 39.56 million (ranked 16 out of 31), while the average per capita disposal income of residents in Shaanxi was RMB 30 116 (USD 4478.25 (converted using the average China/U.S. Foreign Exchange Rate in 2022 (RMB 1 = USD 0.1487)) per year (the national average is RMB 36,883 (USD 5484.5)). Therefore, both the Qinling Mountains and Shaanxi Province have substantial representativeness for this study.
Previous scholars have studied PES programs in national parks, focusing on issues prior to the establishment of the programs and the effectiveness of the programs. One study found that social trust demonstrated a positive impact on rural residents’ willingness to conserve forests in nature reserves in China [17]. Another study determined that individuals’ trust in the government was an essential factor in their willingness to support a PES program in national parks in South Korea [18]. Scholars have examined the effects of individual’s value orientation and attitudes on their willingness to pay for the conservation of national parks using online survey data [19]. Other scholars assessed the performance of three different PES programs in Costa Rica national parks [20]. A study also evaluated the effectiveness and fairness of PES programs in a protected area in Africa in both short and long term [21]. Previously, scholars also determined that unstable land ownership, substantial transaction fees, and significant opportunity costs could result in inefficiency of the PES programs in Vietnam, with the profits generated through the PES program failing to benefit the financially vulnerable groups [22]. Hence, to build effective PES programs in the CQNP in the future, this study investigates individuals’ willingness to participate in and willingness to pay for ecosystem conservation of the CQNP prior to its operation.
This study selects rural residents living near the Qinling Mountains as the research subject because they are more affected by the establishment of the CQNP and the changes in the surrounding ecosystem due to geographical distance compared to other social groups. Meanwhile, they are the social group that are compensated through the PES programs. Considering the representative of Shaanxi Province and the Qinling Mountains as discussed above, the sample data from this study also have a substantial representativeness for rural China.
The contribution of this study are as follows: First, as the establishment of the CQNP will bring conflicts of interest with local residents, this study investigates local stakeholders’ willingness to pay before the official operation of the CQNP. Using face-to-face, one-to-one questionnaire survey data through CVM, this study provides a scientific and empirical research basis for establishing the PES programs in the CQNP to mitigate potential conflicts. Second, based on the sample, this study reveals that rural residents in economically underdeveloped regions have a relatively high willingness to participate in ecosystem conservation, but their willingness to pay is relatively low due to their limited household income. Furthermore, this study examines the direct impact of social trust, household income, cultural preferences, and other socioeconomic factors on residents’ willingness to participate in and pay for ecosystem conservation of the CQNP, essential for building effective PES programs in the CQNP. Finally, this study assesses the moderating effects of participants’ occupation and education on the relationships between their household income and willingness to pay, as well as between their cultural preferences and willingness to pay. It also estimates the moderating effects of participants’ occupation and education across different household income and cultural preference groups.
5. Discussion
According to the results above, this study first discovered that residents’ willingness to participate is relatively high, but residents demonstrate deficient willingness to pay for ecosystem conservation of the CQNP.
In the first stage, residents’ social trust positively enhanced their willingness to participate in ecosystem conservation, aligning with previous studies [69,70]. This result further supports the notion that informal institution propelled by trust persist to be apparent in rural regions in China. The results of this study illustrate that both institutional and interpersonal trust could increase residents’ willingness to participate.
In the second stage, residents’ willingness to pay is profoundly affected by their household income levels and frequencies of visiting cultural and educational institutions. These results are consistent with previous findings [71,72,73,74,75], suggesting that residents who frequently visit cultural and educational institutions may pay more attention to ecosystem conservation, resulting in higher willingness to pay.
Other socioeconomic factors such as household income, geographic location, gender and age also demonstrate that residents’ willingness to participate and pay are also affected by their geographic location, gender, and age. Similar results were reached in previous studies [76,77,78,79]. The geographic location of residents demonstrates contrasting results in two stages; one of the suggested interpretations is that the overall quality of the ecosystem is better in the southern piedmont of the Qinling Mountains compared to the northern piedmont. Therefore, residents living in the southern piedmont may express greater willingness to maintain and enhance the ecosystem, leading to higher willingness to participate in ecosystem conservation. Nevertheless, because of the economic development and household income gaps between the northern and southern piedmonts, residents living in the southern piedmont demonstrate lower willingness to pay.
The moderating results of occupation demonstrate that residents’ occupation as farmers could reduce the positive effect of residents’ household income on their willingness to pay. Slope analysis demonstrates opposite moderating effects of residents’ occupation between higher and lower household income groups. Considering farmers’ low household income in the study area, the marginal positive effect in the lower household income group is possibly explained by the fact that farmers pay more attention to the ecosystem due to their occupation. Residents’ occupation also illustrates adverse moderating effect on the positive impact of residents’ cultural preference on their willingness to pay. Slope analysis expresses the opposite moderating effect of residents’ occupation between higher and lower cultural preference groups.
Meanwhile, the moderating results of education show that residents’ education levels enhance the positive influence of residents’ cultural preference on their willingness to pay. Slope analysis exhibits different levels of positive moderating effect of residents’ education on higher and lower cultural preference groups. A possible explanation is that in the higher cultural preference groups, a higher education level leads to an increase in frequencies of visiting cultural and educational institutions, thereby enhancing residents’ willingness to pay.
The heterogeneity analysis results demonstrate that household income of residents living in the northern piedmont positively impact their willingness to pay. This is due to the higher level of economic development and household income in the northern piedmont (GDP in 2021: the northern piedmont (Xi’an, Baoji and Weinan): RMB 1532.42 billion (USD 227.87), the south piedmont (Hanzhong, Ankang and Shangluo): RMB 383.05 billion (USD 56.96); per capita household income of rural residents in 2021: Xi’an: RMB 17,389 (USD 2585.74), Baoji: RMB 15,694 (USD 2333.7), Weinan: RMB 15,184 (USD 2257.86), Hanzhong: RMB 13,274 (USD 1973.84), Ankang: RMB 12,464 (USD 1853.4), Shangluo: RMB 11,969 (USD 1779.79); data source: 2022 Shaanxi Province Statistical Yearbook http://tjj.shaanxi.gov.cn/upload/2022/zk/indexch.htm (accessed on 19 October 2023)).
6. Conclusions and Policy Recommendations
Based on the 1431 face-to-face, one-to-one valid questionnaire data, this study investigates rural residents’ willingness to pay for ecosystem conservation of the CQNP and its influencing factors, finding the following conclusions. First, based on our research, 76.7% of the participants are willing to participate in the ecosystem conservation of the CQNP. However, due to the insufficient economic development and household income levels, rural residents’ willingness to pay for ecosystem conservation is comparatively limited. Meanwhile, regional development is limited as the purpose of building the CQNP is to preserve the water resources; effective PES programs could equilibrize the conflicts between development and conservation.
Moreover, according to our results, informal institutions that are maintained by social trust, including institutional trust and interpersonal trust, continue to play an essential role in the economically underdeveloped regions. Hence, as a significant influencing factor in the economically underdeveloped regions in China, residents’ social trust should be considered in future PES programs in the CQNP.
Furthermore, to establish PES programs in the future, compensation levels are affected by the willingness to pay levels of rural residents. This study finds that residents’ willingness to participate in ecosystem conservation is positively affected by their social trust, and residents’ willingness to pay is positively influenced by their household income and cultural preferences. Residents’ occupations (farmers) illustrate negative moderating effects on the direct impact of household income and cultural preferences on their willingness to pay. Nevertheless, it demonstrates a minor positive moderating effect within the lower household income and cultural preferences groups. Residents’ education level positively moderates the direct effects of cultural preferences on their willingness to pay, presenting a more pronounced positive moderating effect in the higher cultural preferences group. Further heterogeneity analysis results suggest that residents’ willingness to pay for ecosystem conservation is influenced at different levels by the disparate economic development levels in the northern and southern piedmonts of the Qinling Mountain. Specifically, in the northern piedmont, residents’ willingness to pay is considerably affected by their household income, whereas in the southern piedmont, cultural preferences exert a more significant influence.
The above conclusions highlight the necessity of PES programs for establishing national parks in the economically underdeveloped regions for long-term sustainable development. Meanwhile, the substantial role of social trust in rural regions in China suggests that policymakers could consider increasing residents’ willingness to participate in ecosystem conservation by enhancing their social trust. Additionally, this study also found a substantial positive effect of residents’ household income on their willingness to participate in and willingness to pay for ecosystem conservation. When designing the PES programs in the CQNP, rather than simply providing one-off compensation to local residents, policymakers need to consider long-term strategies to increase residents’ household income, or example, prioritizing local residents for job positions in the park and reinvesting income generated from the park to regional ecosystem conservation. In addition, other socioeconomic characteristics such as geographic location, gender, and age need to be considered when establishing PES programs.
Finally, our research, a case study of the China’s Qinling National Park, presents findings on rural residents’ willingness to pay for ecosystem conservation that may differ from other studies. Therefore, other national parks and PES programs may require different CVM research based on field investigations.
