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Grassland rental markets and herder technical efficiency: ability effect or resource equilibration effect?

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  • Tan, S.

Abstract

To explore whether grassland rental markets improve herder technical efficiency, how and to what extent, this study applies a Metafrontier-DEA approach by employing field data collected from 416 herder households to examine the impacts of herder participation in grassland rental markets on their technical efficiencies. Results show that herders involved in the grassland rental markets can increase their technical efficiency by 2.75%. Compared with the autarky group, the lessors increase their efficiency by 3.36%, and the lessees increase their efficiency by 2.76%. No significant efficiency difference is found between the lessors and the lessees. We conclude that grassland rental markets improve herder technical efficiency mainly through a resource equilibration effect rather than ability effect. Only if the herders participate in the grassland rental markets, can they improve their efficiency by balancing family resources and thus enhance production efficiency. This suggests that under the current institutional environment, more attention should be paid to normalize and guide the grassland rental markets, to allow herders to participate in the markets on their own will rather than address land transfer from the less-able to the more-able producers. Acknowledgement : The authors thank the Foundation of Renmin University of China (16XNI004) for its support, and thank colleagues and students from Renmin University of China and Inner Mongolia University for their participation in the field surveys.

Suggested Citation

  • Tan, S., 2018. "Grassland rental markets and herder technical efficiency: ability effect or resource equilibration effect?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277077, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277077
    DOI: 10.22004/ag.econ.277077
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    Cited by:

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    2. Li, Dongqing & Hou, Lingling & Zuo, Alec, 2021. "Informal institutions and grassland protection: Empirical evidence from pastoral regions in China," Ecological Economics, Elsevier, vol. 188(C).
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    4. Xiaolin Guo & Guanming Shi & Linyi Zheng & Wenrong Qian, 2022. "How Does the Land Rental Market Participation Affect Household Efficiency? Evidence from Rural China," IJERPH, MDPI, vol. 19(23), pages 1-14, December.
    5. Shichao Yuan & Jian Wang, 2022. "Involution Effect: Does China’s Rural Land Transfer Market Still Have Efficiency?," Land, MDPI, vol. 11(5), pages 1-18, May.
    6. Zeng Tang & Shiqi Guan & Menglin Zhao & Lijia Wang & Ying Liu & Yubing Fan, 2022. "Grassland Transfer and Its Income Effect: Evidence from Pastoral Areas of the Qinghai–Tibet Plateau," Land, MDPI, vol. 11(11), pages 1-20, November.
    7. Qian, Chen & Shao, Liqun & Chen, Haibin, 2022. "Understanding herdsmen's rangeland rent-in behaviour under current rural land tenure system of China," Ecological Economics, Elsevier, vol. 196(C).
    8. Zhihua Leng & Yana Wang & Xinshuo Hou, 2021. "Structural and Efficiency Effects of Land Transfers on Food Planting: A Comparative Perspective on North and South of China," Sustainability, MDPI, vol. 13(6), pages 1-18, March.

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