Institutional changes to the grassland contract system from the perspective of property right in China

The current academic debate on natural resources management focuses on whether property rights need clarity. All studies thus far have focused on the institutional form rather than on institutional function. However, Institutional function theory holds that the clarity of property rights is only an institutional form, institutional form is not important, it is a subsidiary of institutional function, the decisive role of the function rather than the form. Although the grassland contracting system can improve economic efficiency and improve standard of living herdsmen at an early stage, this system could likely cause problems and limitations in grassland management. This study discusses property rights from the perspective of institutional functions, and analyses the limitations of grassland management in China, with a view to help improve grassland management policies.