Grassland Property Rights and the Size-Productivity Relationship: Evidence from Pastoral China

Using household panel data from five major pastoral provinces in China, we illustrate a robust inverse relationship (IR) between grassland size and productivity. Our investigation reveals that the certification of grassland property rights significantly contributes to this IR. The persistence of the IR among households with certified grassland-use rights, contrasted with its absence among those with ambiguous rights, highlights its role. The emergence of grassland misallocation and fragmentation during the property rights certification process appears detrimental to grassland productivity, potentially explaining this phenomenon. Additionally, herders’ adaptive strategies, like renting grassland and cooperative management, may help mitigate the IR.