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Grassland ecological compensation policy in China improves grassland quality and increases herders’ income

Author

Listed:
  • Lingling Hou

    (Peking University)

  • Fang Xia

    (University of International Business and Economics)

  • Qihui Chen

    (China Agricultural University)

  • Jikun Huang

    (Peking University)

  • Yong He

    (Chinese Academy of Agricultural Sciences)

  • Nathan Rose

    (Stanford University)

  • Scott Rozelle

    (Stanford University)

Abstract

Many countries have undertaken large and high-profile payment-for-ecosystem-services (PES) programs to sustain the use of their natural resources. Nevertheless, few studies have comprehensively examined the impacts of existing PES programs. Grassland Ecological Compensation Policy (GECP) is one of the few pastorally focused PES programs with large investments and long duration, which aim to improve grassland quality and increase herder income. Here we present empirical evidence of the effects of GECP on grassland quality and herder income. Through a thorough and in-depth econometric analysis of remote sensing and household survey data, we find that, although GECP improves grassland quality (albeit to only a small extent) and has a large positive effect on income, it exacerbates existing income inequality among herders within their local communities. The analysis demonstrates that the program has induced herders to change their livestock production behavior. Heterogeneity analysis emphasizes the importance of making sure the programs are flexible and are adapted to local resource circumstances.

Suggested Citation

  • Lingling Hou & Fang Xia & Qihui Chen & Jikun Huang & Yong He & Nathan Rose & Scott Rozelle, 2021. "Grassland ecological compensation policy in China improves grassland quality and increases herders’ income," Nature Communications, Nature, vol. 12(1), pages 1-12, December.
    • Handle: RePEc:nat:natcom:v:12:y:2021:i:1:d:10.1038_s41467-021-24942-8
    DOI: 10.1038/s41467-021-24942-8
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