Grassland Transfer and Its Income Effect: Evidence from Pastoral Areas of the Qinghai-Tibet Plateau

Under the condition of different endowment factors of herders and imperfect market mechanisms, grassland transfer can promote the redistribution and rational utilization of grassland resources, which has a crucial impact on herders' livelihood. This study fully examined how the grassland rental market improves herders' income and to what extent, using unbalanced panel data with 560 herder households in the Qinghai-Tibet Plateau pastoral areas. A fixed effect model was used as the baseline model. The instrumental variable approach and propensity score matching method were utilized to address the endogeneity problem and sample selection bias. Finally, the mediating effect model was used to analyze the path mechanism of grassland transfer in/out on herder income. The results showed that the total household income increased significantly after participating in grassland transfer. Grassland rent-in increased livestock income, and grassland rent-out increased non-livestock income. After correcting for the selection bias, the income effect of grassland transfer became larger. The grassland rent-in increased the livestock income by promoting production investment. Grassland rent-out increased the non-livestock income by promoting non-pastoral employment.