1. The Role of Government in Combating Desertification The Role of Government in Combating Desertification 'Grain for Green' land conversion program motivated by environmental concerns poverty alleviation in marginal areas CHINA Environmental Vulnerability

2. C HIN A GRO and then…. environmental change : land degradation, Pollution, Climate change….

3. C HIN A GRO  fostering rehabilitation and conservation of degraded ecosystem functions,  to realize flood control,  mitigate soil erosion,  alleviate land degradation,  combat sand storm generation and desertification,  address conservation and sustainable use of biodiversity,  increase storage of GHGs in terrestrial ecosystems. China’s nationwide land conversion program offers a unique opportunity for estimating the direct and indirect value of Greenland ecosystem services, which include functions of vital importance to society. Through discontinuing cultivation on steep slopes and conversion into forests or grasslands, the program aims to:

4. C HIN A GRO “Grain for Green” China's National Land Conversion Programme In 1999: three pilot provinces (Gansu, Sichuan and Shaanxi) In 2002: State Council extended GFG to 20 provinces; by now largest environmental conservation program  Contains about 5.3 mill. ha  Involves: more than 400 counties, 5700 townships, 16 mill. farmers

5. C HIN A GRO REPORTS ON GFG IMPLEMENT- ATION COUNTY STATISTICAL DATA 2000 3 SLOPE DISTRIBUTION IN CULTIVATED LAND 2 ADMINISTR. UNITS LAND COVER SOIL CLIMATE ELEVATION GIS 1 PRODUCTION & YIELDS OF GFG LAND 7 NPV OF SOCIAL COST OF GFG PROGRAM 11 Steps in GFG Land Valuation Methodology CHINAGRO AEZ LAND PRODUCTIVITY (RAINFED, IRRIG.) 5 COST OF ESTABLISHMENT & MAINTENANCE OF VEGET. COVER 10 PRODUCTION CULTIVATED LAND RAINFED, IRRIG. AVERAGE YIELD 4 LAND TYPES: IRRIGATED, RAINFED, GFG LAND 6 GANSU 1997 I-O TABLES 8 CONSTRAINED I-O MODEL ANALYSIS 9

6. C HIN A GRO Population25.6millions Total Area40.4mill. Haof Total - Grassland12.9mill. ha32.0 % - Forestland4.7mill. ha11.5 % - Not used/usable16.4mill. ha40.6 % Cultivated5.0mill. ha12.4 % - Cultivated5.0mill. ha12.4 % - slopes 15 - 25º1.1mill. ha22.3% - slopes >25 º0.3mill. ha5.5 % - by 2003 idled0.4mill. Ha(30%) Grain Production7.5mill. tons - Wheat3.0mill. tons - Maize2.0mill. tons Gansu Province – Some Basic Data

7. C HIN A GRO GIS Layers - Gansu Province

8. C HIN A GRO A regional Input-Output (I-O) model was developed to estimate the secondary effects of land use changes. Involves obtaining data on the sectoral distribution of local purchases and sales to final demand of every sector of the economy. Regional I-O model was constructed using published data of 1997 (Gansu Statistics Bureau, 2000). The original model includes 124 economic sectors. 5 in agriculture, 84 in industry, 1 in construction, 9 in transport and communication, and 25 service sectors. “Final use” comprises of six categories: peasant, non-peasant, government consumption, fixed investment, inventory changes, and net exports. The 124 industrial sectors were reduced to 14 sectors. Regional Economy Model

9. C HIN A GRO Annual Social Cost of GFG Land Conversion in Gansu Province

10. C HIN A GRO GFG program is now in full swing, pursuing multiple objectives of environmental rehabilitation, poverty alleviation, excess supply management Study shows significant social costs for restoring Greenland ecosystem functions Government plays crucial roles in combating environmental degradation: Acts as trustee of natural resources Acts as trustee of natural resources Sets rules of land conversion program expressing social willingness-to-pay Sets rules of land conversion program expressing social willingness-to-pay Organizes scientific support and technical backstopping Organizes scientific support and technical backstopping Coordinates across sectors and administrative levels Coordinates across sectors and administrative levels Establishes legal frame and enforces environmental regulations Establishes legal frame and enforces environmental regulations Fosters public participation and creates enabling environment Fosters public participation and creates enabling environment Monitors progress and evaluates impacts Monitors progress and evaluates impacts GFG Policy Considerations

11. THANK YOU! C HIN A GRO