IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v13y2023i4p775-d1108804.html
   My bibliography  Save this article

The Influence of the Grassland Ecological Compensation Policy on Regional Herdsmen’s Income and Its Gap: Evidence from Six Pastoralist Provinces in China

Author

Listed:
  • Mengmeng Liu

    (College of Economics and Management, Northwest A&F University, Xianyang 712100, China
    Center for Resource Economics and Environment Management, Northwest A&F University, Xianyang 712100, China)

  • Limin Bai

    (College of Natural Resources and Environment, Northwest A&F University, Xianyang 712100, China)

  • Hassan Saif Khan

    (College of Economics and Management, Northwest A&F University, Xianyang 712100, China
    Center for Resource Economics and Environment Management, Northwest A&F University, Xianyang 712100, China)

  • Hua Li

    (College of Economics and Management, Northwest A&F University, Xianyang 712100, China
    Center for Resource Economics and Environment Management, Northwest A&F University, Xianyang 712100, China)

Abstract

The Grassland Ecological Compensation Policy (GECP) is a key set of policy instruments designed to alleviate grassland degradation and increase herdsmen’s income. However, considering the various constraints and obstacles that policies often face in actual operation, it may not be able to achieve the expected goals. In order to test the real income effect of GECP and clarify its mechanism, based on the data of 499 counties in Chinese pastoralist provinces from 2000 to 2019, this paper uses the difference-in-differences (DID) model to empirically test the impact of GECP on herdsmen’s income from the dual perspective of income growth and income gap. This analysis not only evaluates the impact and mechanism of GECP on income growth in more detail, but also broadens the existing research perspective from the perspective of the income gap. The major study findings are as follows: (1) GECP significantly promotes income for herdsmen, with a marginal effect of 0.078. (2) The mechanism analysis indicates the GECP improves the income of herdsmen through the direct effect of increasing transfer income and the indirect effect of optimizing the allocation of labor, and promoting the livestock scale of barn feeding. (3) With respect to the income gap, this paper finds that areas with relatively high levels of development benefit more from GECP, which will widen the income gap between regions for herdsmen.

Suggested Citation

  • Mengmeng Liu & Limin Bai & Hassan Saif Khan & Hua Li, 2023. "The Influence of the Grassland Ecological Compensation Policy on Regional Herdsmen’s Income and Its Gap: Evidence from Six Pastoralist Provinces in China," Agriculture, MDPI, vol. 13(4), pages 1-16, March.
    • Handle: RePEc:gam:jagris:v:13:y:2023:i:4:p:775-:d:1108804
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/13/4/775/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/13/4/775/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wunder, Sven, 2015. "Revisiting the concept of payments for environmental services," Ecological Economics, Elsevier, vol. 117(C), pages 234-243.
    2. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September.
    3. Sheng, Jichuan & Wang, Hui, 2022. "Participation, income growth and poverty alleviation in payments for ecosystem services: The case of China's Wolong Nature Reserve," Ecological Economics, Elsevier, vol. 196(C).
    4. Hu, Yuanning & Huang, Jikun & Hou, Lingling, 2019. "Impacts of the Grassland Ecological Compensation Policy on Household Livestock Production in China: An Empirical Study in Inner Mongolia," Ecological Economics, Elsevier, vol. 161(C), pages 248-256.
    5. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1993. "Long-term earnings losses of high-seniority displaced workers," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 17(Nov), pages 2-20.
    6. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    7. Emi Uchida & Scott Rozelle & Jintao Xu, 2009. "Conservation Payments, Liquidity Constraints, and Off-Farm Labor: Impact of the Grain-for-Green Program on Rural Households in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 70-86.
    8. Rodrigo Muniz & Maria João Cruz, 2015. "Making Nature Valuable, Not Profitable: Are Payments for Ecosystem Services Suitable for Degrowth?," Sustainability, MDPI, vol. 7(8), pages 1-27, August.
    9. Sims, Katharine R.E. & Alix-Garcia, Jennifer M., 2017. "Parks versus PES: Evaluating direct and incentive-based land conservation in Mexico," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 8-28.
    10. Zhang, Jing & Brown, Colin & Qiao, Guanghua & Zhang, Bao, 2019. "Effect of Eco-compensation Schemes on Household Income Structures and Herder Satisfaction: Lessons From the Grassland Ecosystem Subsidy and Award Scheme in Inner Mongolia," Ecological Economics, Elsevier, vol. 159(C), pages 46-53.
    11. Pfaff Alexander & Robalino Juan & Sanchez-Azofeifa G. Arturo & Andam Kwaw S & Ferraro Paul J, 2009. "Park Location Affects Forest Protection: Land Characteristics Cause Differences in Park Impacts across Costa Rica," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(2), pages 1-26, July.
    12. Groom, Ben & Palmer, Charles, 2010. "Cost-effective provision of environmental services: the role of relaxing market constraints," Environment and Development Economics, Cambridge University Press, vol. 15(2), pages 219-240, April.
    13. Wu, Xutong & Wang, Shuai & Fu, Bojie & Zhao, Yan & Wei, Yongping, 2019. "Pathways from payments for ecosystem services program to socioeconomic outcomes," Ecosystem Services, Elsevier, vol. 39(C).
    14. Yin, Runsheng & Liu, Hao & Liu, Can & Lu, Gang, 2018. "Households' Decisions to Participate in China's Sloping Land Conversion Program and Reallocate Their Labour Times: Is There Endogeneity Bias?," Ecological Economics, Elsevier, vol. 145(C), pages 380-390.
    15. 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.
    16. Zhidong Li & Boru Su & Moucheng Liu, 2022. "Research Progress on the Theory and Practice of Grassland Eco-Compensation in China," Agriculture, MDPI, vol. 12(5), pages 1-16, May.
    17. Zhidong Li & Didi Rao & Moucheng Liu, 2021. "The Impact of China’s Grassland Ecological Compensation Policy on the Income Gap between Herder Households? A Case Study from a Typical Pilot Area," Land, MDPI, vol. 10(12), pages 1-13, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shuwei Sun & Jiamei Niu & Yujun Wang & Hongbo Yang & Xiaodong Chen, 2024. "Exploring the Heterogeneities in the Impacts of China’s Grassland Ecological Compensation Program," Land, MDPI, vol. 13(2), pages 1-11, January.
    2. Sha, Zhouhao & Ren, Dong & Li, Chengyou & Wang, Zeru, 2024. "Agricultural subsidies on common prosperity: Evidence from the Chinese social survey," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 1-18.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sheng, Jichuan & Wang, Hui, 2022. "Participation, income growth and poverty alleviation in payments for ecosystem services: The case of China's Wolong Nature Reserve," Ecological Economics, Elsevier, vol. 196(C).
    2. Guo, Shu & Zhang, ZhongXiang, 2023. "Green credit policy and total factor productivity: Evidence from Chinese listed companies," Energy Economics, Elsevier, vol. 128(C).
    3. 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.
    4. Blundo-Canto, Genowefa & Bax, Vincent & Quintero, Marcela & Cruz-Garcia, Gisella S. & Groeneveld, Rolf A. & Perez-Marulanda, Lisset, 2018. "The Different Dimensions of Livelihood Impacts of Payments for Environmental Services (PES) Schemes: A Systematic Review," Ecological Economics, Elsevier, vol. 149(C), pages 160-183.
    5. Helmers, Viola & van der Werf, Edwin, 2022. "Did the German Aviation Tax Affect Passenger Numbers? New Evidence Employing Difference-in-differences," VfS Annual Conference 2022 (Basel): Big Data in Economics 264118, Verein für Socialpolitik / German Economic Association.
    6. Mark B. Stewart, 2007. "The interrelated dynamics of unemployment and low-wage employment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(3), pages 511-531.
    7. Shengli Dai & Weimin Zhang & Linshan Lan, 2022. "Quantitative Evaluation of China’s Ecological Protection Compensation Policy Based on PMC Index Model," IJERPH, MDPI, vol. 19(16), pages 1-24, August.
    8. Liu, Zhaoyang & Kontoleon, Andreas, 2018. "Meta-Analysis of Livelihood Impacts of Payments for Environmental Services Programmes in Developing Countries," Ecological Economics, Elsevier, vol. 149(C), pages 48-61.
    9. Bodea, Cristina & Houle, Christian & Kim, Hyunwoo, 2021. "Do financial crises increase income inequality?," World Development, Elsevier, vol. 147(C).
    10. Zhang, Dongyang & Kong, Qunxi, 2022. "Green energy transition and sustainable development of energy firms: An assessment of renewable energy policy," Energy Economics, Elsevier, vol. 111(C).
    11. Hajjar, Reem & Newton, Peter & Ihalainen, Markus & Agrawal, Arun & Alix-Garcia, Jennifer & Castle, Sarah E. & Erbaugh, James T. & Gabay, Monica & Hughes, Karl & Mawutor, Samuel & Pacheco, Pablo & Scho, 2021. "Levers for alleviating poverty in forests," Forest Policy and Economics, Elsevier, vol. 132(C).
    12. Hu, Yuan & Kuhn, Lena & Zeng, Weizhong & Glauben, Thomas, 2023. "Who benefits from payments for ecosystem services? Policy lessons from a forest carbon sink program in China," Ecological Economics, Elsevier, vol. 214(C).
    13. Jingdong Li & Qingning Lin, 2022. "Can the Adjustment of China’s Grain Purchase and Storage Policy Improve Its Green Productivity?," IJERPH, MDPI, vol. 19(10), pages 1-24, May.
    14. Pinkston, Joshua C., 2017. "The dynamic effects of obesity on the wages of young workers," Economics & Human Biology, Elsevier, vol. 27(PA), pages 154-166.
    15. Feng, Xiaolong & Qiu, Huanguang & Liu, Mingyue & Tang, Jianjun, 2024. "Innovation of grassland ecological governance systems: Synergy between government regulation and grassroots governance," Ecological Economics, Elsevier, vol. 217(C).
    16. Mehic, Adrian, 2018. "Industrial employment and income inequality: Evidence from panel data," Structural Change and Economic Dynamics, Elsevier, vol. 45(C), pages 84-93.
    17. Bas Scheer & Wiljan van den Berge & Maarten Goos & Alan Manning & Anna Salomons, 2022. "Alternative Work Arrangements and Worker Outcomes: Evidence from Payrolling," CPB Discussion Paper 435, CPB Netherlands Bureau for Economic Policy Analysis.
    18. Yuegang Song & Songlin Jin & Zhenhui Li, 2022. "Venture Capital and Chinese Firms’ Technological Innovation Capability: Effective Evaluation and Mechanism Verification," Sustainability, MDPI, vol. 14(16), pages 1-20, August.
    19. Andreas Pollak, 2008. "Optimal Unemployment Insurance with Variable Skill Levels," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 164(4), pages 696-726, December.
    20. Liu, Duan & Yu, Nizhou & Wan, Hong, 2022. "Does water rights trading affect corporate investment? The role of resource allocation and risk mitigation channels," Economic Modelling, Elsevier, vol. 117(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:13:y:2023:i:4:p:775-:d:1108804. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.