Effects of Culture on Economic Performance and Grassland Degradation: The Case of Tibetans and Mongolians in the Qinghai Lake Area

This study uses micro-level data gathered for Tibetans and Mongolians living in the same region (Qinghai Lake area in Northwest China) and having similar religion (Buddhism) and livelihoods (livestock raising) to examine how cultural differences between these two ethnic groups affect their integration into markets, their means of livestock production, and the extent of degradation of the grassland. We find significant cultural differences between the two ethnic groups, and conclude that the impact of religious attitudes on the market orientation of herder households is the dominating force explaining a relatively high degree of grassland degradation among Mongolian households.