The effects of China's Sloping Land Conversion Program on agricultural households

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The effects of China's Sloping Land Conversion Program on agricultural households. / Liu, Zhen; Henningsen, Arne.

I: Agricultural Economics, Bind 47, Nr. 3, 2016, s. 295-307.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Liu, Z & Henningsen, A 2016, 'The effects of China's Sloping Land Conversion Program on agricultural households', Agricultural Economics, bind 47, nr. 3, s. 295-307. https://doi.org/10.1111/agec.12230

APA

Liu, Z., & Henningsen, A. (2016). The effects of China's Sloping Land Conversion Program on agricultural households. Agricultural Economics, 47(3), 295-307. https://doi.org/10.1111/agec.12230

Vancouver

Liu Z, Henningsen A. The effects of China's Sloping Land Conversion Program on agricultural households. Agricultural Economics. 2016;47(3):295-307. https://doi.org/10.1111/agec.12230

Author

Liu, Zhen ; Henningsen, Arne. / The effects of China's Sloping Land Conversion Program on agricultural households. I: Agricultural Economics. 2016 ; Bind 47, Nr. 3. s. 295-307.

Bibtex

@article{115a8e8f24a247a0a5b832885ec458ca,
title = "The effects of China's Sloping Land Conversion Program on agricultural households",
abstract = "In the late 1990s, China aimed to mitigate environmental degradation from agricultural production activities by introducing the world's largest {"}Payments for Environmental Services{"} program: the Sloping Land Conversion Program (SLCP). We develop a microeconomic Agricultural Household Model, which can model the production, consumption, and nonfarm labor supply decisions of agricultural households in rural China in a theoretically consistent fashion. Based on this theoretical model, we derive an empirical specification, which we econometrically estimate using the Hausman-Taylor method and a large longitudinal farm household data set. The empirical results significantly differ between regions, but are generally consistent with the results of our theoretical comparative static analysis, for example, that the SLCP significantly decreases agricultural production. While the SLCP only increases nonfarm labor supply and total consumption in some regions, these effects could not be observed in others. The recent reduction of the SLCP compensation payment rates generally had negligible effects on agricultural production and off-farm work and only very small effects on household consumption.",
keywords = "Agricultural household model, Hausman-Taylor estimator, Sloping Land Conversion Program",
author = "Zhen Liu and Arne Henningsen",
year = "2016",
doi = "10.1111/agec.12230",
language = "English",
volume = "47",
pages = "295--307",
journal = "Agricultural Economics",
issn = "0169-5150",
publisher = "Wiley-Blackwell",
number = "3",

}

RIS

TY - JOUR

T1 - The effects of China's Sloping Land Conversion Program on agricultural households

AU - Liu, Zhen

AU - Henningsen, Arne

PY - 2016

Y1 - 2016

N2 - In the late 1990s, China aimed to mitigate environmental degradation from agricultural production activities by introducing the world's largest "Payments for Environmental Services" program: the Sloping Land Conversion Program (SLCP). We develop a microeconomic Agricultural Household Model, which can model the production, consumption, and nonfarm labor supply decisions of agricultural households in rural China in a theoretically consistent fashion. Based on this theoretical model, we derive an empirical specification, which we econometrically estimate using the Hausman-Taylor method and a large longitudinal farm household data set. The empirical results significantly differ between regions, but are generally consistent with the results of our theoretical comparative static analysis, for example, that the SLCP significantly decreases agricultural production. While the SLCP only increases nonfarm labor supply and total consumption in some regions, these effects could not be observed in others. The recent reduction of the SLCP compensation payment rates generally had negligible effects on agricultural production and off-farm work and only very small effects on household consumption.

AB - In the late 1990s, China aimed to mitigate environmental degradation from agricultural production activities by introducing the world's largest "Payments for Environmental Services" program: the Sloping Land Conversion Program (SLCP). We develop a microeconomic Agricultural Household Model, which can model the production, consumption, and nonfarm labor supply decisions of agricultural households in rural China in a theoretically consistent fashion. Based on this theoretical model, we derive an empirical specification, which we econometrically estimate using the Hausman-Taylor method and a large longitudinal farm household data set. The empirical results significantly differ between regions, but are generally consistent with the results of our theoretical comparative static analysis, for example, that the SLCP significantly decreases agricultural production. While the SLCP only increases nonfarm labor supply and total consumption in some regions, these effects could not be observed in others. The recent reduction of the SLCP compensation payment rates generally had negligible effects on agricultural production and off-farm work and only very small effects on household consumption.

KW - Agricultural household model

KW - Hausman-Taylor estimator

KW - Sloping Land Conversion Program

U2 - 10.1111/agec.12230

DO - 10.1111/agec.12230

M3 - Journal article

AN - SCOPUS:84963541982

VL - 47

SP - 295

EP - 307

JO - Agricultural Economics

JF - Agricultural Economics

SN - 0169-5150

IS - 3

ER -

ID: 165912890