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Among herders, market-oriented grassland rental has been prevalent in China following the implementation of the Household Contracted Responsibility System, which allocated formerly collectively-owned use rights to individual herders. However, empirical evidence on the effect of grassland rental on herder households' overgrazing behaviour is scant, despite the fact that it is one of the main determinants of the severe grassland degradation in China. This study thus investigates the effects of grassland rental on both household- and plot-
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