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Impact of Rangeland Degradation on Farm Performance and Household Welfare in the Case of Mongolia

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  • Narmandakh, Davaatseren
  • Sakurai, Takeshi

Abstract

In this paper we utilize a nationwide dataset on plot-level rangeland health, which has not been used in previous studies on the economic impact of rangeland degradation in Mongolia. Taking account of typical reverse causality between grass condition and pastoralists’ activities, we adopt a 2SLS instrumental variable approach to identify the impact of rangeland degradation on pastoralists’ farm performance and welfare. We find that rangeland degradation causes a significant decrease in livestock product sales, farm income, and total paid-out costs. But we do not observe a significant decrease in farm profit and total income of the households.

Suggested Citation

  • Narmandakh, Davaatseren & Sakurai, Takeshi, 2022. "Impact of Rangeland Degradation on Farm Performance and Household Welfare in the Case of Mongolia," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 24.
    • Handle: RePEc:ags:jpjjre:338656
    DOI: 10.22004/ag.econ.338656
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    References listed on IDEAS

    as
    1. Ariell Ahearn, 2018. "Herders and hazards: covariate dzud risk and the cost of risk management strategies in a Mongolian subdistrict," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 92(1), pages 165-181, November.
    2. Asian Development Bank (ADB), 2014. "Making Grasslands Sustainable in Mongolia: Herders' Livelihoods and Climate Change," ADB Reports RPT136101, Asian Development Bank (ADB), revised 08 Jul 2014.
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