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Sustainable utilization of grassland resources was an important topic concerned by worldwide countries and regions, and ecological compensation had gradually become the main policy tool for grassland environmental management and ecological protection. This study adopted face-to-face interviews and questionnaires, and multiordered Logit model was then used to explore herdsmen’s satisfaction with Grassland Ecological Conservation Subsidy and Reward Policy (GECSRP) focusing on identifying the key factors behind it. Results showed that herdsmen were not satisfied with GECSRP on the whole, while value perception, environmental regulation and their interaction played a positive role on improving the satisfaction. Specifically, economic benefits had the strongest promotion impacts, followed by social identity in the two-dimensional variables of value perception. The guiding regulation had stronger promoting impacts, followed by the incentive regulation in the two-dimensional variables of environmental regulation. Interestingly, incentive regulation played an enhanced interaction on the influence of economic benefits and environmental value on herdsmen’s satisfaction, yet the interaction between guiding regulation and environmental value was not significant. These indicated that herdsmen paid more attention to substantial subsidies and rewards in the process of ecological livestock husbandry, and environmental regulation formulated by government had a phenomenon of “relative system failure”. Thus, the grassland ecological environment policy should be further adjusted and improved to promote the economic development of pastoral areas.

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