Understanding grassland rental markets and their determinants in eastern inner Mongolia,PR China |
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| Affiliation: | 1. College of Geography and Environmental Science, Northwest Normal University, Lanzhou 730070, China;2. Key Laboratory of Ecohydrology of Inland River Basin, Alashan Desert Eco-Hydrology Experimental Research Station, Cold and Arid Regions Environmental Engineering Research Institute, Chinese Academy of Sciences, Lanzhou 73000, China;3. School of Agricultural, Computational and Environmental Sciences, International Centre for Applied Climate Sciences (ICACS), Institute of Agriculture and Environment (IAg&E), University of Southern Queensland, Springfield, QLD 4300, Australia;4. Department of Bioresource Engineering, Faculty of Agricultural and Environmental Science McGill University, Québec H9X 3V9, Canada;5. Soil Erosion and Degradation Research Group, Department de Geografia, Universitat de Valencia, Blasco Ibanez, 28, 46010 Valencia, Spain;1. Department of Economics, Swedish University of Agricultural Sciences, Box 7013, 75007 Uppsala, Sweden;2. Department of Agricultural Economics and Rural Development, University of Goettingen, Platz der Göttinger Sieben 5, D-37073 Göttingen, Germany;3. Department of Environmental Science, Policy, and Management, University of California at Berkeley, CA 94720 - 3110 Berkeley, United States;2. School of Economic and Management, Beijing Forestry University, Beijing 100083, China;3. School of Land Science and Technology, China University of Geosciences, Beijing 100083, China |
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| Abstract: | Grassland rental markets function as a venue for balancing production factors of herder households. This paper jointly determines the socioeconomic factors affecting herders’ grassland rent-in and rent-out behaviors by applying Bivariate Probit Model with clustering standard errors on 422 households’ data from Eastern Inner Mongolia. Results reveal that imbalances in “people-grassland (grass)-livestock-productive assets” are the major determinants of the herder households’ participation in grassland rental markets. Given other factors, an increase of 10 thousand yuan in a household’ productive assets renders an increase/decrease in their rent-in/rent-out participation likelihood by 1.0% and 2.0%, respectively; an increase of 100 standard sheep unit may bring about 4% increase in rent-in participation and 0.6% decrease in rent-out participation; an increase of 100 hm2 in hayfields may decrease and increase the likelihood of rent-in and rent-out participation by 13% and 3%, respectively; an increase of 1.0% in ratio of non-livestock income may decrease propensity of rent-in by 0.34%, and increase propensity of rent-out by 0.2%. In addition, the education and Chinese level of household head, and the available family labor encourage participation in grassland rent-in market. Main findings help facilitate better allocation of herders’ livelihood assets by participating the functional grassland rental markets. |
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| Keywords: | Grassland rental markets Eastern inner Mongolia Imbalances in factor proportions Bivariate probit model |
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