Water conservation policy and agricultural economic growth: Evidence of grain to green project in China

Bai, Yang and Dai, Jie and Huang, Weilun and Tan, Tingting and Zhang, Yu (2021) Water conservation policy and agricultural economic growth: Evidence of grain to green project in China. Urban Climate, 40. ISSN 2212-0955, DOI https://doi.org/10.1016/j.uclim.2021.100994.

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Abstract

The relations between soil and water conservation policies and agricultural economic growth in the planned economy system have not been thoroughly discussed in the past literature. This study used a case study of the grain to green project (GTGP) in China and land rent theory to set up the following assumptions: (1) the locations and areas of farmland and forestland are controlled by the government's planned economy system; (2) the farmer's direct income is defined by subsidies from its farmland-converting area in GTGP; and (3) the farmer's indirect agricultural income risk reduction is affected by soil and water conservation from its farmland-converting area in GTGP. Based on a literature review and survey of experts, this study established comparative static economic graphs of the impacts on farmland and forestland areas by the different shifts in land rents brought about by agricultural and non-agricultural economic growth in China. These graphs were then modified to illustrate the impact of GTGP on farmland and forestland areas. To explore GTGP's dynamic economic impacts on farmland and forestland areas, this study constructed a dynamic model of farmland area converting behavior in GTGP. According to the results of this model, the forestland area in GTGP might increase in the short term, whereas the overall farmland and forestland areas may continue to decrease in the long term. The incentives of GTGP should include the education and promotion of soil and water conservation.

Item Type: Article
Funders: Humanities and Social Science Projects of Chinese Ministry of Education (21YJA790027)
Uncontrolled Keywords: Soil and water conservation; Agricultural economic growth; Grain to green project; Land rent theory; Dynamic model
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HC Economic History and Conditions
Divisions: Institute of Advanced Studies
Deputy Vice Chancellor (Academic & International) Office > Asia-Europe Institute
Depositing User: Ms Zaharah Ramly
Date Deposited: 25 Jul 2022 08:02
Last Modified: 25 Jul 2022 08:02
URI: http://eprints.um.edu.my/id/eprint/28114

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