How Sustainable Is Government-Sponsored Desertification Rehabilitation in China? Behavior of Households to Changes in Environmental Policies

<div><p>This paper undertakes a direct, comprehensive assessment of the long-term sustainability of desertification rehabilitation in China under a plausible but worst case scenario where governmental interventions, in the form of payments for environmental services (PES), will cease. The analysis is based on household behavior as well as experimental data. Our econometric results highlight the main obstacles to the sustainability of rehabilitation programs subsequent to cessation of government intervention, including specific shortfalls in households’ preference for a free ride, budget constraints, attitudes, tolerance of and responsibility for desertification, and dissatisfaction with governmental actions. We conclude that desertification rehabilitation is not sustainable in China without continued governmental intervention. The results of this study are intended to support policy makers as they consider future directions for rehabilitation sustainability.</p></div

Reasons for negative response for WTP.

1<p>Affordability means the residents assert they cannot afford the contribution for further reversal. Indifference means the residents are indifferent about desertification reversal. Governmental duty indicates the residents think that it is the government’s duty to combat desertification. Unexpected results mean that the residents think that even if they contribute, the outcome will be less than their expectation.</p

Summary statistics.

<p>Summary statistics.</p

Regression of V_c.

a<p>Residents in China are legally separated into urban and rural residents.</p>b<p>Severity of desertification.</p>c<p>Interaction of profession and severity of desertification.</p>d<p>Q₁: Do you feel some improvement of the natural environment in your county relative to previous years? Q₂: Which is the main reason in your opinion about the desertification in your county? <b>^e</b> *, ** and *** indicate the significance at 10%, 5% and 1% level respectively.</p

Regression of Ratio₁ and Ratio₂.

a<p>Residents in China are legally separated into urban and rural residents.</p>b<p>Q₁: Do you feel some improvement of the natural environment in your county relative to previous years? Q₂: Which is the main reason in your opinion about the desertification in your county? Q₃: Do you think that implementation of ecological protection policies plays an active role for the environment or not in your county?</p>c<p>*, ** and *** indicate the significance at 10%, 5% and 1% level respectively.</p