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Since the launch of a prohibited grazing policy (PGP) in 2002, the ecological environment in North China has improved markedly. The aims of PGP are to improve the ecological environment without reducing farmers’ well-being in rural areas. Hence, after the implementation of the policy for more than 16 years, the effect of this policy on farmers’ subjective well-being (SWB) has become a question that needs to be studied. In this paper, the survey data in Yanchi County was used to explore the relationship between the perception of the policy and farmers’ SWB using structural equation modelling (SEM). The results showed that there was a full mediation effect in the relationship between the perception of the PGP and farmers’ SWB through economic status, neuroticism, and extraversion. However, the mediation effect through the perception of the ecological environment was not significant. These findings suggest that it is important to continue to implement this policy.

Linking Prohibited Grazing Policy to Farmers’ Subjective Well-Being: A Case Study in Yanchi County, China