We analyze how grassland subsidy policy affects livestock numbers, grazing intensity and herders’ income for 262 households in 2012.
Grassland subsidy program has a positive effect on livestock numbers in Ordos and Ulanqab, and a negative effect in Hulunbuir and Xilingol.
1% increase in subsidy reduces grazing intensity by between 0.168% and 0.532%, and increases herders’ income by between 0.144% and 0.670%.