The effect of grassland transfer on herders' livestock production and grazing intensity in Inner Mongolia and Gansu, China

Purpose - The purpose of this study is to understand the impact mechanism of grassland transfer on herders' production behaviour in pastoral areas. The impact of grassland transfer on herders' livestock production and grazing intensity is quantified. Design/methodology/approach - Using the survey data collected for 356 herder households from Inner Mongolia and Gansu, China, quantile regression is employed to assess the heterogeneous effects of grassland transfer on livestock production and grazing intensity. To correct the potential self-selection bias of grassland transfer, the propensity score matching technique is used. Findings - Results show that labour, percentage of livestock income and livestock stock are the main factors affecting herders' choice to transfer grassland. The positive effect of grassland transfer on livestock numbers on behalf of those who rented additional grassland is statistically significant but declines with livestock numbers. The sustainability-enhancing effect of grassland transfer on grazing intensity is significant, and the effect becomes larger amongst herder households with higher grazing intensity. The analysis on the impact mechanism shows that grassland transfer significantly promotes the adoption of sustainable grazing modes, such as rotational and seasonal rest grazing, which in turn increases herders' livestock numbers and decreases grazing intensity. Originality/value - Few studies have empirically analysed the influence of grassland transfer on livestock numbers and grazing intensity. This study fills this gap by employing a quantile regression to assess the heterogeneous effects of grassland transfer on livestock numbers and grazing intensity, while accounting for self-selection bias. In addition, the authors have examined the influencing mechanisms under which grassland transfer impacts on livestock numbers and grazing intensity.