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The harmonious coexistence between human and nature is a topic of general concern. Existing studies generally agree that the establishment of nature reserves can effectively protect biodiversity, but less attention has been given to the effects of the regulation implied therein upon the multidimensional poverty of surrounding farmers. This paper verified the effects of regulation intensity upon the multidimensional poverty of farmers at the two levels of theory and empirical evidence from the perspective of freedom of production decisions based on the research data involving farmers around the Panda Nature Reserves (PNRs) in China. We have found that regulation intensity will significantly increase the multidimensional poverty of farmers. Heterogeneity analysis indicates that the regulation of agricultural production and the regulation of pollutants will produce a significant positive effect on the multidimensional poverty of farmers. The inherent mechanism is that regulation affects farmers’ freedom of production decisions, thereby worsening the state of their multidimensional poverty. The conclusion of this paper not only contributes to expanding the theoretical studies on regulations and the multidimensional poverty of farmers but also offers suggestions on how the Chinese government can strike a balance between ecological protection and the prosperity of farmers.

Regulation Intensity, Freedom of Production Decision and the Poverty of Farmers: Evidence from the Panda Nature Reserves in China