Analyze the Effect of Farmland Protection Compensation Policy Based on Propensity Score Matching Model

Abstract

Farmland ecological compensation policy is a tool used by the government to redistribute economic benefits of beneficiaries and destroyers through fiscal, taxation, and market adjustments, which can effectively to enhance the value of ecosystem services. Taking Chengdu, which is the first area to develop farmland protection and compensation policies, as an example, combined with 1180 survey data of farmers, using the Propensity Score Matching model and Kernel Distribution Curve, to analyse the impact of compensation policies on the household income, the household expenditure, the labour to supply, and the non-agricultural labours transfer of the interviewed farmers. Research shows that the implementation of compensation policies can significantly increase the per capital income and per capital expenditure of the beneficiary farmers. Compensation policies can increase the investment of beneficiary farmers' households in agricultural labours and reduce the transfer of non-agricultural labours from beneficiary farmers' families.