Influence of Livelihood Capital Level and Structure on Rural Households’ Payment Willingness for Rural Human Settlement Improvement: Evidence from Hubei Province, China

Abstract

Rural human settlement improvement (RHSI) is the basis for enhancing rural households’ life quality and promoting their well-being. Studying the impact of the livelihood capital level and structure on rural households’ payment willingness for RHSI will help to clarify the effective focus for implementing a payment system for rural environmental governance, which is of great significance for improving rural human settlements and promoting comprehensive rural revitalization. This study reveals the influence mechanism of the livelihood capital level and structure on rural households’ willingness to pay (WTP) for RHSI. According to the survey data of rural households in Hubei Province, China, the level and structure of rural households’ livelihood capital and their WTP for RHSI are analyzed using the entropy value method and the contingent valuation method. The effects of the livelihood capital level and structure on rural households’ WTP for RHSI are tested using the Probit and Tobit models. The results show significant differences in the level and structure of rural households’ livelihood capital. More than half of the rural households have a payment inclination for RHSI, but the distribution of the willingness payment amounts shows a clear polarization, with the average payment amount ranging from CNY 14.48 to 28.32 per month. Both the total livelihood capital level and classification levels (natural capital, human capital, financial capital and social capital) significantly positively affect the rural households’ WTP. In the livelihood capital structure, both the natural-capital-dominant type and financial-capital-dominant type significantly positively affect the rural households’ WTP, and the human-capital-dominant type significantly positively affects the rural households’ willingness payment amount. Accordingly, this study proposes policy recommendations for the multi-dimensional improvement of rural households’ livelihood capital and the optimization of the livelihood capital structure allocation.