Conservation Payments, Liquidity Constraints and Off-Farm Labor: Impact of the Grain for Green Program on Rural Households in China



50


Other
18%


Can use the
trees that have
grown to

Enlarge retired
area at own
expense
0%

Start an off-
farm job
6%

Start cultivating
grain on current
retired land
6%

Work in the town
22%


Continue current
activities (off-
farm/farm /
livestock)
28%

maturity

20%

Note: n = 337 responses from 266 program participants (multiple choices).

Responses to the question “If the government stops compensation after 5 to 8 years,
what would you most likely do?”

Data source: Author’s survey, 2005.

Figure 5. What participants are likely to do if the government stops compensation in the
future.



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