In order to curb the phenomenon of grassland degradation caused by human activity, China has begun the exploration of grassland eco-compensation, setting an example for the ecological protection of grasslands and sustainable use of resources around the world. At this stage, China has invested more than 170 billion yuan in grassland eco-compensation, benefiting 12 million farmer and herder households. The related research involves various perspectives, scopes, and methods, but lacks systematic reviewing. This study reviews the relevant theoretical and practical research and explores the connotations and effects of grassland eco-compensation in China. In general, the current grassland eco-compensation in China is a large-scale ecological-economic institutional arrangement with the following five characteristics: (1) the goals are to maintain the grassland ecosystem services and increase the income of herder households; (2) the main bodies are governments and herder households; (3) the main method is financial transfer payments; (4) the compensation standards are based on the opportunity costs of the herder households’ responses as the lower limits and the grassland ecosystem service values as the upper limits; and (5) it is a comprehensive compensation system that requires legal, regulatory, technological support and long-term mechanisms. Since 2011, driven by the grassland eco-compensation policy, the income levels of herder households in each pilot area have generally increased, and the overall ecology of grasslands has slightly improved. However, there are still some areas where overload is common. Additionally, there are regional differences in the satisfaction degree of herder households, which is mainly affected by factors such as family income, compensation cognition and family holding grassland scale. Our analysis shows that the shortcomings of current theoretical research are mainly reflected in the low precision of scientific compensation standards, the lack of a basis for differentiated standards, and the single compensation method. The shortcoming of practical research is that most effect evaluations cannot reflect the role of eco-compensation in it. This study suggests that future work should focus on the response mechanism of herder households and the improvement of the compensation measures. At the same time, the scope of research should be expanded, and we should learn from advanced compensation experience in other fields.

No abstract