Environmental Protection in China
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Environmental Protection in China

Land-Use Management

Edited by Jeff Bennett, Xuehong Wang and Lei Zhang

Faced with intensified environmental degradation and decreased agricultural land productivity, the Chinese government has sought policy interventions to reverse both of these negative trends. Among the policy instruments is the Conversion of Cropland to Forest and Grassland Program (CCFGP) that aims to change the pattern of agricultural land use in 25 provinces and autonomous regions across China. This book provides the most comprehensive assessment of the CCFGP undertaken to date. It allows the consideration of fundamental questions pertaining to the sustainability of the land use changes brought about by the CCFGP, its cost effectiveness and the prospects for policy evolution. Contributions from a wide range of economists and scientists in the book provide policymakers in the Chinese government with relevant information with which to pursue more effectively agro-environmental goals.
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Chapter 5: Economic Efficiency Impacts

Jeff Bennett, Guangcui Dai, Jincheng Zhao, Li Jiang, Zhitao Zhang and Xuehong Wang


5. Economic efficiency impacts Jeff Bennett, Guangcui Dai, Jincheng Zhao, Li Jiang, Zhitao Zhang, Dan Liang and Xuehong Wang INTRODUCTION In the previous chapter, the financial impacts of the introduction of the Conversion of Cropland to Forest and Grassland Program (CCFGP) on farmer livelihoods were analysed through the examination of survey data collected from 400 farm households across four counties in two of China’s Northwest Provinces, Qinghai and Shaanxi. The aim of this chapter is to convert that analysis to one that investigates the economic benefits and costs associated with the changes in agricultural production induced by the implementation of the Program. Whilst the goal of Chapter 4 was to gain an understanding of the incentives for farmers to continue their involvement in the Program, the focus here shifts to a consideration of the economic efficiency of the Chinese investment in the Program. Hence, the first key element of the research reported in this chapter is the conversion of on-farm financial impacts to the effects of the Program on wider social welfare. The principles of cost–benefit analysis are therefore invoked. The second key element is the extrapolation of the estimates of benefits and costs derived from the survey data to the population of farm households in the study region. This chapter is made up of four further parts. In Section 2, the methodology used for converting the financial impacts estimated for the sample of farm households to economic benefits and costs is detailed....

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