2 6 called the traditional pastoral areas (Ho and Azadi, 2010), and which were home to the world's largest population of sheep and goats and the fourth largest concentration of cattle in the 1990s (Zhang and Yang, 1990; National Research Council, 1992; Ho and Azadi, 2010). They are considered to be the major areas for livestock production in China, with a long history of producing meat, milk, wool and fur. Moreover, local animal husbandry provides livelihoods to millions of people, with a majority existing as traditional self-sufficient enterprises and a few commercial grazing businesses (Li et al., 2014). The ecological function of China's grasslands is being emphasized increasingly, such as biodiversity conservation, carbon sequestration, soil retention, soil fertility maintenance, and catchment protection (Suttie et al., 2005). It was shown that the grasslands of northern China significantly impact both regional climates and the global carbon cycle (Ni, 2002). In addition, the majority of pastoral areas are populated by ethnic minorities, such as Mongolians and Ewenkis, thus protecting the grasslands of China also has a social function of maintaining cultural diversity and social stability (Kang et al., 2007). These socioeconomic and environmental functions of grasslands have invoked the increasing attention of central and local governments to adopt policy interventions for sustaining the productivity of-in addition to protecting-the grassland ecosystem. 1.2.2 Grassland degradation in China Grassland degradation, a worldwide problem, is particularly severe in China (Ho and Azadi, 2010). Grassland degradation can manifest itself in the lowering of grassland productivity, reduction in soil fertility, soil compaction, increased presence of unpalatable species of grass, or a combination thereof (Li et al., 2013). Although lacking clear documentation and differing in specifics regarding the extent