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An Empirical Analysis of the Effects of China’s Land Conversion Program on Farmers’ Income Growth and Labor Transfer

Environmental Management volume 45, pages 502–512 (2010)Cite this article

Abstract

In this article, we hypothesize that in addition to participation status and household characteristics, the impact of China’s Sloping Land Conversion Program on income growth and labor transfer is determined by local economic conditions, program range, and political leadership, and the degree of impact on income may vary among different economic sectors. To test these propositions, we have compiled a panel data set of 600 households in three counties in the Loess Plateau region, with observations for times both prior to and after the program’s inception (1999 and 2006), for both aggregate and categorical incomes, and for both participating and non-participating households. Using a difference in differences model and repeated cross-sectional data, we find that participation status, local economic conditions, program extent, and political leadership indeed have significant impacts on household income and off-farm employment. Moreover, the effects of participation on crop production income, animal husbandry income, and off-farm income vary substantially. These results carry major policy implications in terms of how to improve the effectiveness and impact of ecological restoration efforts in and outside of China.

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Acknowledgments

This study is sponsored by the National “11th Five-Year Plan” Science & Technology Support Project (2006 BAD03A0308), the International Research Center of Sediment project of “Study on Wuqi County Sustainable Development” (2005-01-10), and the Shaanxi Provincial Key Forestry special project “Ecological Forest Policy Research.” The authors are grateful for Professor Runsheng Yin’s help in editing this article.

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  1. College of Economics and Management, Northwest A&F University, 712100, Yangling, Shaanxi, China

    Shunbo Yao, Yajun Guo & Xuexi Huo

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  1. Shunbo Yao
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  2. Yajun Guo
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  3. Xuexi Huo
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Correspondence to Shunbo Yao.

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Yao, S., Guo, Y. & Huo, X. An Empirical Analysis of the Effects of China’s Land Conversion Program on Farmers’ Income Growth and Labor Transfer. Environmental Management 45, 502–512 (2010). https://doi.org/10.1007/s00267-009-9376-7

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  • DOI: https://doi.org/10.1007/s00267-009-9376-7

Keywords

  • Sloping Land Conversion Program
  • Income increase
  • Labor transfer
  • Panel data
  • Northern Shaanxi
  • Difference in differences model
  • Economic development
  • Program extent
  • Political leadership