Effects of Payments for Ecosystem Services and Livelihoods on Non-Grain Agricultural Land Use

Abstract

Non-grain agricultural land use (NGALU) could be an alternative to payments for ecosystem services (PES) to achieve ecosystem benefits, given their joint contribution to forest transition. Unraveling the correlation between PES and NGALU can enhance cost-effective decisions. While farmland abandonment and non-grain cash crops (NGCCs) plantation are two main manifestations of NGALU, previous studies have primarily assessed the effects of PES on farmland abandonment. Little is known about the effects of PES on NGCC planting. This study evaluated the effects of China’s two nationwide PES programs (i.e., the Grain to Green Program, GTGP, and the Ecological Welfare Forest Program, EWFP) on NGALU in the Black River Basin of Shaanxi province. The study found a wide adoption of NGALU, with 52% of households adopting NGALU. The total area of NGALU is more than half of the afforested area through the GTGP. A quarter of the NGALU area is abandoned farmland, while the remaining NGALU area is planted with NGCCs. The two PES programs did not have effects on NGCC planting, but reduced farmland abandonment. Engagement in labor migration and local non-farm employment increased NGALU, while livestock breeding and farmland area reduced NGALU. Furthermore, the large area and unfavorable geographical conditions of farmland parcels promoted NGALU. These results highlight the important implications of leveraging NGALU to boost ecological gains from conservation investments.