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A factor-income approach to estimating grassland protection subsidy payments to livestock herders in Inner Mongolia, China

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  • Byrne, Anne T.
  • Hadrich, Joleen C.
  • Robinson, Brian E.
  • Han, Guodong

Abstract

This paper contributes to the growing literature on land use policies designed to prevent livestock overgrazing. It offers a straightforward factor-income approach to calculating payments for ecosystem services (PES) to livestock producers who reduce or suspend grazing for the purpose of grassland restoration. Our approach requires only cross-sectional farm-level accounting data and is thus feasible where policies have either not yet been applied or specialized data is sparse, as is common in many developing regions. We apply and validate this approach with empirical analysis of sheep and goat herders in the Ulanqab prefecture in Inner Mongolia, China where herders currently receive payments in exchange for reduced grazing intensity on vulnerable land. However, observed stocking rates are still commonly higher than recommended. Our results suggest payments are currently insufficient to offset the financial loss incurred by herders who reduce their grazing intensity, a finding consistent with previous studies. Using an approach we refer to as the factor-income method, we estimate and validate new levels of recommended payments. This demonstrates how future payments could be tailored to meet the financial needs of individual herding communities using basic farm-level data.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:lauspo:v:91:y:2020:i:c:s0264837719301449
    DOI: 10.1016/j.landusepol.2019.104352
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    3. Cuizhen Xia & Lihua Zhou & Ya Wang & Xiaodong Pei, 2022. "Tibetan Herders’ Life Satisfaction and Determinants under the Pastureland Rehabilitation Program: A Case Study of Maduo County, China," Sustainability, MDPI, vol. 14(4), pages 1-17, February.
    4. 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.
    5. Mengmeng Liu & Wanqing Wu & Hua Li, 2023. "The Influence of Grassland Ecological Compensation Policy on Grassland Quality: Evidence from the Perspective of Grassland Ecosystem Vulnerability," Agriculture, MDPI, vol. 13(9), pages 1-15, September.
    6. 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).
    7. Shi, Yuxing & Cai, Yu & Zhao, Minjuan, 2021. "Social interaction effect of rotational grazing and its policy implications for sustainable use of grassland: Evidence from pastoral areas in Inner Mongolia and Gansu, China," Land Use Policy, Elsevier, vol. 111(C).
    8. 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.
    9. Huilong Lin & Yuting Zhao & Ghulam Mujtaba Kalhoro, 2022. "Ecological Response of the Subsidy and Incentive System for Grassland Conservation in China," Land, MDPI, vol. 11(3), pages 1-23, February.

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