Impact of Forest Eco-compensation Subsidy on Household Forest Input: Evidence from Jiangxi Province,China

Larger amount of national and provincial forest eco-compensation funds in China have been distributed to farmers annually, which aims to encourage farmers input more labor and fund in daily forestry management. We selected 503 household from 50 villages of 10 counties in Jiangxi Province in the paper. Household labor and cash input responded negatively towards forest eco-compensation fund in forestry management. Forest eco-compensation subsidy(FECS) granted to the household in the rural mountain area didn't stimulate the household labor and cash input in forestry management. It implies that it is not a wise way to distribute FECS equally to the rural household, so as to promote the forestry ecological quality. The current forest eco-compensation policy(FECP)need modifying urgently.