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In 1999, the Grain to Green Program (GTGP) was initiated in China as payment of ecosystem service and the largest land conservation program. This paper evaluates the impact of this conservation program on the regional economic structural change in Guizhou Province. We generate the agriculture-based regional input-output tables of 2002, 2007 and 2012. The production and employment inducements are calculated by using the Leontief inverse matrix. The key sectors are figured out by applying the linkage analysis. The RAS analysis is used for categorizing sectors as the potentially growing or shrinking industry. The results indicate the undesired effect of the GTGP and the EMP on the upstream supplier and downstream industries for agricultural production. Rural household expenditure was changed by the subsidies and shows negative effect on agricultural production. In the second stage of policy implementation, we found the depression of rural economies. The shrinking potential of the rural sector forced the further cutback of these upstream and downstream industries. The surplus rural labors find difficulties in searching for jobs in the local labor market and should move out of this region. From these results, we suggest the local government should reconsider the economic influence of the GTGP and EMP rather than emphasize the environmental issues and intend to improve rural welfare.

Information theory, and the concept of information channel, allows us to calculate the mutual information between the source (input) and the receiver (output), both represented by probability distributions over their possible states. In this paper, we use the theory behind the information channel to provide an enhanced interpretation to a Social Accounting Matrix (SAM), a square matrix whose columns and rows present the expenditure and receipt accounts of economic actors. Under our interpretation, the SAM's coefficients, which, conceptually, can be viewed as a Markov chain, can be interpreted as an information channel, allowing us to optimize the desired level of aggregation within the SAM. In addition, the developed information measures can describe accurately the evolution of a SAM over time. Interpreting the SAM matrix as an ergodic chain could show the effect of a shock on the economy after several periods or economic cycles. Under our new framework, finding the power limit of the matrix allows one to check (and confirm) whether the matrix is well-constructed (irreducible and aperiodic), and obtain new optimization functions to balance the SAM matrix. In addition to the theory, we also provide two empirical examples that support our channel concept and help to understand the associated measures ; M.S., M.F. and M.V. acknowledge support from the project PID2019-106426RB-C31 from the Spanish Government