This paper uses household data to assess the near-term impact of the program on incomes and activity choices of rural households in areas where the sandstorm control program (Beijing and Tianjin Sandstorm Source Control Program) was implemented. Central to our analysis is a unique panel survey conducted by the State Forestry Administration covering years from 1998 to 2003 in 17 counties in three Northern provinces Hebei, Shanxi, and Inner Mongolia (autonomous region). The essential feature of the program is an annual subsidy provided to participating farmers to cover costs associated with permanent retirement of farm land and the planting of saplings. We first look at the impact of program participation on household incomes and, not surprisingly, observe... |