Abstract
In order to restore degraded grasslands, the Chinese central government initiated the Prohibited Grazing Policy (PGP) in areas of severe grassland degradation and ecologically fragile regions which is an important payment for ecosystem services (PES) program. Since the initiation of this policy in the early 2000s, the PGP has significantly influenced participants' lives. Therefore, in order for the policy to be successful, it is necessary to understand what determines participants' satisfaction in the policy. This paper presents an analysis of survey data from Yanchi County using ordered probit regression models to explore the factors influencing PGP satisfaction and life satisfaction. The empirical results suggest that farmers' policy perception, environmental perception, and livelihood strategies of raising sheep had significant effects on PGP satisfaction. Additionally, PGP satisfaction, marital status, environmental satisfaction, self-reported influence of the PGP on income, self-reported income level, and self-reported income and expenditure had significantly positive effects on overall life satisfaction. These results are important for promoting better implementation of such programs as well as enhancing social stability and sustainable development in these regions.