The effects of privatization on pasture productivity in southern Kazakhstan
Eduard Bukin, Sarah Robinson, Martin Petrick
Based on rich cadastral data we examine the effects of land privatization on pasture productivity. We identify the causal effect using a design with a staggered absorbing treatment and heterogeneous treatment effects accounting for spatial spillovers. We collect a balanced panel of 16 thousand plots located in southern Kazakhstan including precise land allocation dates and remotely sensed geographic and climatic features over 24 years. Results show that land allocation has a significantly negative effect on the pasture vegetation comparable with a drought occurring once in 25 years for individual farms and ones in six years for all users on average. Controlling for the spatial spillover of privatization of neighboring land further aggravates the negative effects of titling especially in proximity to settlements. Pasture privatization under a restricted land market with imperfect institutions and high transaction costs distorts existing grazing practices and causes pastures to deteriorate.
Event: World Bank Land Conference 2024 - Washington
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