The effects of grassland circulation on herdsmen’s family income: An empirical analysis based on the propensity score matching method

Grassland circulation is conducive to optimizing the allocation of grassland resources and promoting the large-scale operation of animal husbandry. Empirical analysis of the impact of grassland circulation on herders’ family income is of notable importance with respect to the sustainable development of grassland animal husbandry. On the basis of household survey data obtained for the pastoral areas of Qinghai and Gansu Provinces, China, we used multiple regression models and propensity score matching methods to analyze the impact of grassland circulation on the household income of herdsmen. In addition, we further examined group differences in the effects of grassland circulation on the family income of herdsmen at different grassland scales and income levels. The results obtained revealed the following patterns. 1) Grassland rent-in can contribute to increasing herders’ family income, whereas grassland rent-out has no significant impact on family income. 2) The average treatment effect of grassland rent-in on the per capita annual income of herders’ families was 6576 CNY, and grassland rent-in raises the per capita annual income of herders’ families by 47.25%. However, we failed to detect any significant effect of grassland rent-out on the per capita annual income of herders’ families. 3) Grassland rent-in had a comparably greater impact on the family income of larger-scale and high-income herders. Moreover, we found that herders with low incomes and small grassland areas are unable to obtain higher economic benefits from the grassland circulation market. Consequently, the income gap among herders has widened. On the basis of these findings, it is proposed that local governments should establish a grassland circulation market mechanism and legal guarantee system for the allocation of grassland resources that improve the mechanism for determining rent in grassland circulation, protect the interests of low-income herders in the circulation of grasslands, and enhance the efficiency of grassland circulation.