Forest eco-products value realization and urban–rural income gap in China: Stumbling block or stepping stone?

China is undergoing a critical economic transition amidst the double pressures of growing environmental demands and an increasing urban–rural income gap. The forest eco-products value realization (FEPVR) mechanism helps resource-rich but economically underdeveloped regions overcome development constraints and boost revenue. This study investigates the impact of FEPVR on the urban–rural income gap by quantifying FEPVR using an evaluation index system of conversion efficiency. Using panel data from China’s pilot regions for the eco-product value realization mechanism from 2005 to 2023, a fixed effects model and panel quantile regression are used to empirically assess the impact of FEPVR on the urban–rural income gap. The main findings are as follows: (1) FEPVR effectively narrows the urban–rural income gap. (2) The relationship follows an inverted U-shaped pattern, initially widening the gap before subsequently reducing it. (3) The significant income improvement among rural residents, particularly those in low-income groups, primarily drives this reduction. (4) Heterogeneity analysis reveals that regions with larger rural populations and higher-quality forest resources derive greater benefits from FEPVR in narrowing the income gap. This effect was significant between 2012 and 2023 but less notable between 2005 and 2011. This study provides direct implications for Chinese policymakers and offers valuable insights for advancing the Sustainable Development Goals (SDGs), particularly in eradicating poverty (SDG 1) and reducing inequality (SDG 10).