Rural eco-industries, livelihood capacity and farmers' income: an empirical study based on 913 survey data from farmers in the Three Gorges Reservoir area of Chongqing, China

Developing regionally distinctive rural eco-industries is an important pathway for broadening farmers' income channels. While existing studies have largely focused on the income-enhancing effects of specific types of such industries, few have systematically examined their broad income-enhancing effects and micro-level mechanisms. Within a ‘rural eco-industries-livelihood capacity-farmers' income’ theoretical framework and using micro-survey data from 913 households in the Three Gorges Reservoir Area of Chongqing, China, this paper employs multiple regression, mediation and threshold models to examine the impact of rural eco-industries on farmers' income and the role of livelihood capacity. The results show that (1) rural eco-industries directly increase farmers' income, with participants earning 37.92% more than non-participants; (2) livelihood capacity serves as a significant partial mediator in this relationship, accounting for 5.20% of the total effect and (3) the impact of rural eco-industries on farmers' income exhibits a threshold effect with respect to livelihood capacity: the coefficient is 0.3472 when livelihood capacity is below 0.4172 and rises to 0.3980 once it exceeds this value. These findings provide empirical support for refining rural eco-industry policies, enhancing farmers' livelihood capacity and maximizing the income-enhancing potential of eco-industries.