Impact of Forest Ecological Compensation Policy on Farmers’ Livelihood: A Case Study of Wuyi Mountain National Park

Forest ecological compensation policies (FECPs) are a key institutional arrangement for balancing ecological conservation and farmers’ development needs in national parks. Existing research has often treated such policies as a homogeneous whole, failing to clearly reveal the mechanisms through which different policy types affect farmers’ livelihoods, while also paying insufficient attention to complex property-rights settings. This study takes Wuyi Mountain National Park—a typical representative of collective forest regions in southern China—as a case study. Based on 239 micro-survey datasets from farming households and employing the mprobit model and moderating effect models, it investigates the influence, mechanisms, and heterogeneity of farmers’ livelihood capital in terms of their livelihood strategy choices under the moderating roles of “blood-transfusion” and “blood-making” FECPs. The results show the following: (1) Among the sample farmers, livelihood strategies are distributed as follows: pure agricultural type (31.8%), out-migration for work type (20.5%), and commercial operation type (47.7%). (2) Farmers’ livelihood capital has a significant impact on their livelihood strategy choice, with different dimensions of capital playing distinct roles. (3) FECPs follow differentiated moderating pathways. “Blood-transfusion” policies emphasize compensation and buffering functions, reducing farmers’ livelihood transition pressure through direct cash transfers; “blood-making” policies reflect empowerment and restructuring characteristics, activating physical assets and reshaping the role of social capital through productive investment. Together, they constitute a complementary system of protective security and transformative empowerment. Accordingly, this study proposes policy insights such as building a targeted ecological compensation system that is categorized, dynamically linked, and precise; innovating compensation fund allocation mechanisms that integrate collective coordination with household-level benefits; optimizing policy design oriented toward enhancing productive capital; and establishing robust monitoring, evaluation, and adaptive management mechanisms for dynamic FECPs.