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Effect of Eco-compensation Schemes on Household Income Structures and Herder Satisfaction: Lessons From the Grassland Ecosystem Subsidy and Award Scheme in Inner Mongolia

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  • Zhang, Jing
  • Brown, Colin
  • Qiao, Guanghua
  • Zhang, Bao

Abstract

The Grassland Ecosystem Subsidy and Award Scheme (GESAS) is a key set of policy instruments designed to improve grassland condition and herder livelihoods in China. This paper uses a Structural Equation Modelling (SEM) approach to investigate the impacts of GESAS on livestock practices, herder incomes and employment, and overall herder satisfaction in Inner Mongolia. The findings reveal that more intensive use of on-farm inputs mediated the effects of lower stocking-rate under the scheme on on-farm income. Conversely, GESAS had a direct and negative impact on off-farm income. Overall the findings do highlight the incentive role of GESAS on herder decisions, but also indicate a level of dissatisfaction among herders as the level of compensation is insufficient to cover the extra effort expended by herders and does not meet the livelihood expectations of most herders.

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  • Zhang, Jing & Brown, Colin & Qiao, Guanghua & Zhang, Bao, 2019. "Effect of Eco-compensation Schemes on Household Income Structures and Herder Satisfaction: Lessons From the Grassland Ecosystem Subsidy and Award Scheme in Inner Mongolia," Ecological Economics, Elsevier, vol. 159(C), pages 46-53.
    • Handle: RePEc:eee:ecolec:v:159:y:2019:i:c:p:46-53
    DOI: 10.1016/j.ecolecon.2019.01.006
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    3. Pan, Ying & Wu, Junxi & Zhang, Yanjie & Zhang, Xianzhou & Yu, Chengqun, 2021. "Simultaneous enhancement of ecosystem services and poverty reduction through adjustments to subsidy policies relating to grassland use in Tibet, China," Ecosystem Services, Elsevier, vol. 48(C).
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    5. Yan Yu & Ya Wu & Pan Wang & Yili Zhang & Liang Emlyn Yang & Xian Cheng & Jianzhong Yan, 2021. "Grassland Subsidies Increase the Number of Livestock on the Tibetan Plateau: Why Does the “Payment for Ecosystem Services” Policy Have the Opposite Outcome?," Sustainability, MDPI, vol. 13(11), pages 1-20, May.
    6. Byrne, Anne T. & Hadrich, Joleen C. & Robinson, Brian E. & Han, Guodong, 2020. "A factor-income approach to estimating grassland protection subsidy payments to livestock herders in Inner Mongolia, China," Land Use Policy, Elsevier, vol. 91(C).
    7. Yuting Zhao & Yanfei Pu & Huilong Lin & Rong Tang, 2021. "Examining Soil Erosion Responses to Grassland Conversation Policy in Three-River Headwaters, China," Sustainability, MDPI, vol. 13(5), pages 1-14, March.
    8. Mingyue Li & Pujie Zhao & Lianbei Wu & Kai Chen, 2021. "Effects of Value Perception, Environmental Regulation and Their Interaction on the Improvement of Herdsmen’s Grassland Ecological Policy Satisfaction," IJERPH, MDPI, vol. 18(6), pages 1-23, March.
    9. Colin Brown & Lava Prakash Yadav & Jing Zhang & Deqing Zhouma, 2019. "Sustainability of Agricultural Diversity in the Farm Households of Southern Tibet," Sustainability, MDPI, vol. 11(20), pages 1-13, October.
    10. Shi, Jingxin & Huang, Wenping & Han, Hongjun & Xu, Chunyan, 2021. "Pollution control of wastewater from the coal chemical industry in China: Environmental management policy and technical standards," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    11. Behrendt, Karl & Brown, Colin & Qiao, Guanghua & Zhang, Bao, 2022. "Assessing the opportunity costs of Chinese herder compliance with a payment for environmental services scheme," Ecological Economics, Elsevier, vol. 193(C).
    12. Weiwei Wang & Lihua Zhou & Guojing Yang & Yan Sun & Yong Chen, 2019. "Prohibited Grazing Policy Satisfaction and Life Satisfaction in Rural Northwest China—A Case Study in Yanchi County, Ningxia Hui Autonomous Region," IJERPH, MDPI, vol. 16(22), pages 1-17, November.
    13. Pengyao Qin & Bin Sun & Zengyuan Li & Zhihai Gao & Yifu Li & Ziyu Yan & Ting Gao, 2021. "Estimation of Grassland Carrying Capacity by Applying High Spatiotemporal Remote Sensing Techniques in Zhenglan Banner, Inner Mongolia, China," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    14. Jiayu Dong & Zimeng Ren & Xinling Zhang & Xiaoling Liu, 2023. "Pastoral Differentiations’ Effects on Willingness to Accept Valuation for Grassland Eco-Subsidy—Empirical Study of 410 Herder Households in Grass–Livestock Balance Sub-Policy Zones in Inner Mongolia, ," Sustainability, MDPI, vol. 15(13), pages 1-20, June.
    15. Yiran Zhang & Wuriliga & Yong Ding & Fang Li & Yujuan Zhang & Min Su & Shuhui Li & Li Liu, 2022. "Effectiveness of Grassland Protection and Pastoral Area Development under the Grassland Ecological Conservation Subsidy and Reward Policy," Agriculture, MDPI, vol. 12(8), pages 1-15, August.
    16. Mengmeng Liu & Limin Bai & Hassan Saif Khan & Hua Li, 2023. "The Influence of the Grassland Ecological Compensation Policy on Regional Herdsmen’s Income and Its Gap: Evidence from Six Pastoralist Provinces in China," Agriculture, MDPI, vol. 13(4), pages 1-16, March.
    17. Yang Liu & Qing Zhang & Qingfu Liu & Yongzhi Yan & Wanxin Hei & Deyong Yu & Jianguo Wu, 2020. "Different Household Livelihood Strategies and Influencing Factors in the Inner Mongolian Grassland," Sustainability, MDPI, vol. 12(3), pages 1-15, January.

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