How livelihood capital affects farmers' willingness to pay for farmland non-market value? Evidence from Jianghan Plain, China

Abstract

Farmland not only provides human being with food and industrial materials, but also has non-market value. However, few studies have explored the impact of livelihood capital configuration and their willingness to pay (WTP) for the farmland non-market value, from farmers' perspective. Based on the field survey data of 434 households in Jianghan Plain, China, this paper divided the research process into two stages to explore the impact of farmers' livelihood capital on their WTP by using binary logistics model and qualitative comparative analysis method of fuzzy sets (fsQCA). The results show that (1) The total livelihood capital of farmers was 2.667, with psychological capital 0.649, natural capital 0.621, social capital 0.127. 79.49% of the households were willing to pay for the farmland non-market value, and the most concentrated range of it is 50-200 yuan/hm². (2) Both social capital and psychological capital had positive impacts on farmers' WTP for the non-market value of farmland protection. (3) There were two livelihood capital configurations that could improve the WTP of farmers. When lacking of human capital, physical capital and psychological capital, the improvement in farmers' financial capital and social capital will improve farmers' WTP. When the natural, financial, and psychological capital are poor, the rich human capital, physical capital and social capital will also increase farmers' WTP. In view of the results, policy implications on livelihood capital structure optimization and ecological compensation system differentiation were proposed.

Keywords: Farmers; Farmland non-market value; Livelihood capital; Qualitative comparative analysis method of fuzzy sets (fsQCA); Willingness to pay (WTP).