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An exploration of livestock-development policies in western China

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  • Komarek, Adam M.
  • Waldron, Scott A.
  • Brown, Colin G.
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    Abstract

    Limited agricultural land potential, poorly integrated markets and low rural incomes are all interrelated problems for agricultural households in western China. Within the wide range of development options available, this paper focuses on the impact of forage-growing subsidies and reducing livestock feed trade barriers on agricultural household incomes and enterprise mixes in the Qingyang Prefecture of Gansu Province, China. A heterogeneous-agent model is used to assess the local consequences of these two policies. Data from a survey conducted in 2009 are used as inputs into the model. The results indicate that a simultaneous reduction in livestock feed trade barriers and an introduction of forage-growing subsidies lifts net household incomes by approximately 10%. Different scenarios have different impacts on incomes, land allocation decisions and grain purchases, with heterogeneity also found among household income responses. Livestock-development policies have the potential to lift household incomes however there are tradeoffs between income and grain self-sufficiency.

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    Bibliographic Info

    Article provided by Elsevier in its journal Food Policy.

    Volume (Year): 37 (2012)
    Issue (Month): 1 ()
    Pages: 12-20

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    Handle: RePEc:eee:jfpoli:v:37:y:2012:i:1:p:12-20

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    Web page: http://www.elsevier.com/locate/foodpol

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    Keywords: Policy scenarios; China; Livestock; Household incomes; Heterogeneous-agent model;

    References

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    1. Lu, C. H. & van Ittersum, M. K. & Rabbinge, R., 2004. "A scenario exploration of strategic land use options for the Loess Plateau in northern China," Agricultural Systems, Elsevier, vol. 79(2), pages 145-170, February.
    2. Michael E. Johnson & William A. Masters & Paul V. Preckel, 2006. "Diffusion and spillover of new technology: a heterogeneous-agent model for cassava in West Africa," Agricultural Economics, International Association of Agricultural Economists, vol. 35(2), pages 119-129, 09.
    3. Park, Albert & Wang, Sangui & Wu, Guobao, 2002. "Regional poverty targeting in China," Journal of Public Economics, Elsevier, vol. 86(1), pages 123-153, October.
    4. Berger, Thomas, 2001. "Agent-based spatial models applied to agriculture: a simulation tool for technology diffusion, resource use changes and policy analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 245-260, September.
    5. Colin Brown & Scott Waldron & Liu Yuman & John Longworth, 2009. "Forage-livestock policies designed to improve livelihoods in Western China: a critical review," China Agricultural Economic Review, Emerald Group Publishing, vol. 1(4), pages 367-381, August.
    6. Emi Uchida & Jintao Xu & Scott Rozelle, 2005. "Grain for Green: Cost-Effectiveness and Sustainability of China’s Conservation Set-Aside Program," Land Economics, University of Wisconsin Press, vol. 81(2).
    7. Fan, Shenggen & Chan-Kang, Connie, 2008. "Regional road development, rural and urban poverty: Evidence from China," Transport Policy, Elsevier, vol. 15(5), pages 305-314, September.
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