China’s grassland policies and the Inner Mongolian grassland system Min Liu i China’s grassland policies and the Inner Mongolian grassland system Thesis committee Promotor Prof. Dr W.J.M. Heijman Professor of Regional Economics Wageningen University Co-promotors Min Liu Prof. Dr J. Huang Professor of Agricultural Economics China Centre for Agricultural Policy (CCAP), Peking University Dr L.K.E. Dries Associate professor, Agricultural Economics and Rural Policy Group Wageningen University Dr X. Zhu Associate professor, Environmental Economics and Natural Resources Group Thesis Wageningen University submitted in fulfilment of the requirements for the degree of doctor at Wageningen University Other members by the authority of the Rector Magnificus, Prof. Dr J.D. van der Ploeg, Wageningen University Prof. Dr A.P.J. Mol, Dr N.B.M. Heerink, Wageningen University in the presence of the Prof. Dr Robert Finger, Swiss Federal Institute of Technology in Zurich, Switzerland Thesis Committee appointed by the Academic Board Prof. Dr P.P.S. Ho, Delft University of Technology to be defended in public on Tuesday 24 January 2017 at 4 p.m. in the Aula. This research was conducted under the auspices of the Wageningen School of Social Sciences (WASS) ii iii China’s grassland policies and the Inner Mongolian grassland system Thesis committee Promotor Prof. Dr W.J.M. Heijman Professor of Regional Economics Wageningen University Co-promotors Min Liu Prof. Dr J. Huang Professor of Agricultural Economics China Centre for Agricultural Policy (CCAP), Peking University Dr L.K.E. Dries Associate professor, Agricultural Economics and Rural Policy Group Wageningen University Dr X. Zhu Associate professor, Environmental Economics and Natural Resources Group Thesis Wageningen University submitted in fulfilment of the requirements for the degree of doctor at Wageningen University Other members by the authority of the Rector Magnificus, Prof. Dr J.D. van der Ploeg, Wageningen University Prof. Dr A.P.J. Mol, Dr N.B.M. Heerink, Wageningen University in the presence of the Prof. Dr Robert Finger, Swiss Federal Institute of Technology in Zurich, Switzerland Thesis Committee appointed by the Academic Board Prof. Dr P.P.S. Ho, Delft University of Technology to be defended in public on Tuesday 24 January 2017 at 4 p.m. in the Aula. This research was conducted under the auspices of the Wageningen School of Social Sciences (WASS) ii iii TABLE OF CONTENTS 1. INTRODUCTION ............................................................................................................................... 2 1.1 Problem statement ........................................................................................................................... 2 1.2 Background information ................................................................................................................. 4 1.2.1 Grasslands of China .................................................................................................................. 4 1.2.2 Grassland degradation in China ................................................................................................ 6 1.2.3 Livestock production in the pastoral areas of China ................................................................. 7 1.2.4 The overview of China’s grassland policies ............................................................................. 9 1.2.5 Research region: the pastoral areas of Inner Mongolia ........................................................... 10 1.3 Objectives and research questions ................................................................................................ 12 1.4 Materials and methods .................................................................................................................. 13 1.4.1 Conceptual framework ............................................................................................................ 13 1.4.2 Sampling and data collection .................................................................................................. 15 1.4.3 Model selection ....................................................................................................................... 16 1.5 Contribution of the dissertation ..................................................................................................... 17 1.6 Organization of the dissertation .................................................................................................... 18 2. RURAL LAND ALLOCATION IN ECO-FRAGILE REGIONS OF NORTHERN CHINA .......... 21 2.1 Introduction ................................................................................................................................... 22 2.2 Conceptual framework .................................................................................................................. 23 2.3 Model specification ....................................................................................................................... 25 2.3.1 The utility function of each stakeholder group ....................................................................... 25 2.3.2 The social welfare function ..................................................................................................... 26 Min Liu 2.4 Research region and data collection .............................................................................................. 27 China’s grassland policies and the Inner Mongolian grassland system 2.5 Estimation of the model parameters .............................................................................................. 29 163 pages. 2.5.1 The parameters ............................................................................................. 29 2.5.2 The welfare weightܽ݅ǡ ܾ݅ǡ ܿ݅ǡ ......................................................................................................... ݀݅ 30 PhD thesis, Wageningen University, Wageningen, NL (2017) 2.6 Results ........................................................................................................................................... 31 With references, with summary in English ሺߚ݅ሻ ISBN: 978-94-6343-024-1 2.6.1 Land use conflicts among stakeholder groups ........................................................................ 31 DOI: 10.18174/399371 2.6.2 The optimal social allocation .................................................................................................. 32 2.6.3 Comparison of individual optimum, social optimum and actual land allocation.................... 32 2.7 Conclusion .................................................................................................................................... 33 3. LAND TENURE REFORM AND GRASSLAND DEGRADATION IN INNER MONGOLIA, CHINA ................................................................................................................................................... 37 3.1 Introduction ................................................................................................................................... 38 iv v TABLE OF CONTENTS 1. INTRODUCTION ............................................................................................................................... 2 1.1 Problem statement ........................................................................................................................... 2 1.2 Background information ................................................................................................................. 4 1.2.1 Grasslands of China .................................................................................................................. 4 1.2.2 Grassland degradation in China ................................................................................................ 6 1.2.3 Livestock production in the pastoral areas of China ................................................................. 7 1.2.4 The overview of China’s grassland policies ............................................................................. 9 1.2.5 Research region: the pastoral areas of Inner Mongolia ........................................................... 10 1.3 Objectives and research questions ................................................................................................ 12 1.4 Materials and methods .................................................................................................................. 13 1.4.1 Conceptual framework ............................................................................................................ 13 1.4.2 Sampling and data collection .................................................................................................. 15 1.4.3 Model selection ....................................................................................................................... 16 1.5 Contribution of the dissertation ..................................................................................................... 17 1.6 Organization of the dissertation .................................................................................................... 18 2. RURAL LAND ALLOCATION IN ECO-FRAGILE REGIONS OF NORTHERN CHINA .......... 21 2.1 Introduction ................................................................................................................................... 22 2.2 Conceptual framework .................................................................................................................