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Economic analysis of China’s grain for green policy: theory and evidence

Author

Listed:
  • Chenghua Jin

    (Kyushu Sangyo University)

  • Masahiro Yabuta

    (Chuo University)

Abstract

First phase of the grain for green (GFG) policy, one of the China’s forest policies, was implemented in the late 1990s and ended in 2012. The first phase of the GFG policy was successful from a macro perspective, although there were some failures. Based on these outcomes, the second phase of the GFG policy was implemented from 2014 to 2020. This study used panel data to develop an empirical land use model and conduct a comparative static analysis focusing on the GFG policy. Results of the static analysis confirmed factors that affect GFG for the years 2002–2018. In addition, differences in the explanatory variables between the first (2002–2012) and second periods (2014–2018) were determined. Furthermore, differences in GFG subsidies between the northern and southern provinces in the first phase were analyzed for their effects on a reforestation area. The main results revealed that the amount of investment in GFG and rural livelihood security had a positive effect on the expansion of the area of GFG. In addition, the amount of investment in GFG was more effective during the second period than the first period.

Suggested Citation

  • Chenghua Jin & Masahiro Yabuta, 2024. "Economic analysis of China’s grain for green policy: theory and evidence," Asia-Pacific Journal of Regional Science, Springer, vol. 8(1), pages 355-376, March.
    • Handle: RePEc:spr:apjors:v:8:y:2024:i:1:d:10.1007_s41685-024-00331-z
    DOI: 10.1007/s41685-024-00331-z
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    References listed on IDEAS

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    1. Xiao Zhang & Yuanjie Deng & Mengyang Hou & Shunbo Yao, 2021. "Response of Land Use Change to the Grain for Green Program and Its Driving Forces in the Loess Hilly-Gully Region," Land, MDPI, vol. 10(2), pages 1-28, February.
    2. Lei, Quanyong & Qi, Chunjie & Ye, Cong & Fang, Guozhu, 2023. "Health shock, the Green for Grain Program and medical expenses: Empirical Evidence on the well-being of Chinese Farmers," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 406-418.
    3. Liu, Junchang, 2005. "Forestry development and forest policy in China," Journal of Forest Economics, Elsevier, vol. 10(4), pages 159-160, February.
    4. Fang, Wei & Liu, Zhen & Surya Putra, Ahmad Romadhoni, 2022. "Role of research and development in green economic growth through renewable energy development: Empirical evidence from South Asia," Renewable Energy, Elsevier, vol. 194(C), pages 1142-1152.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    China forest conservation policy; Grain for green; GFG; Land use model; Panel data analysis;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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