Market Economy and Norms of Grassland Utilization in Mongolia

Abstract

As market economies develop, traditional social norms regarding common pool natural resource utilization can change. This study estimates how social norms of nomadic herders’ communities, trust among the community’s members, and individual social preferences (i.e., other-regarding behavior), such as altruism and willingness to pay for conservation, change with market integration and urbanization in Mongolia. This study reveals that market integration is positively correlated with altruism in communities. Urbanization, measured by proximity to an urban area, is negatively correlated with trust and willingness to pay for grassland use fees. These social preferences and trust are positively correlated with social norms regarding sustainable grassland utilization. This suggests that market integration indirectly contributes to natural resource conservation, while urbanization has a negative impact. Sustainable development requires policy programs that build mutual cooperation and improve individual awareness of grassland conservation.