Pastoral Differentiations on WTA Valuation for Grassland Eco-Subsidy – Empirical Study of 410 Herder Households in Grass-Livestock Balance Sub-Policy Zones in Inner Mongolia, China

China’s Grassland Eco-Subsidy Program has been implemented since 2011 to protect and sustain grassland resources and improve the economic situation of herders. In this case study, we evaluated the policy from the perspective of pastoral differentiations and their willingness to accept (WTA) the eco-subsidy. Using the contingent valuation method (CVM), we interviewed 410 herder households in the grass-livestock balance sub-policy zones across Inner Mongolia, and examined how their horizontal and vertical differentiation affected their WTA and compensation expectations in a sorted Logistic model and a Tobit model, respectively. Our findings suggest that horizontal differentiation of herders (variations of income sources and employments) promoted the WTA for eco-subsidy and inhibited the increase of compensation expectations. A large vertical differentiation extent (income disparity) lowered the WTA but raised expectations for payment levels. Besides, factors such as operating pasture area, precipitation, and supervision intensity had significant impacts. Grazing income remained the primary income source for most herder households, reflecting the characteristics of "the rational economic man." Our results suggest a need for policy improvements to guide herders towards becoming "rational ecological men.” By considering this differentiation, policymakers can better tailor the program to meet the needs and expectations of diverse herder households.