This paper focuses on factors influencing grassland lease, which will contribute to the heated debate about land use in China by extending to more extensive and vulnerable grassland regions. Based on review of grassland institutional change and analysis of data from 12 villages, this paper examines the impact of variables such as grassland property rights, grazing policies and physical attributes of actors on grassland lease. This paper also draws attention to widely existed illegal grazing and the implementation of grazing quota, as well as their impact on grassland lease and governance.
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