The Payments for Ecosystem Services (PES) program is an innovative approach that provides economic incentives directly to natural resource exploiters in order to shape their behavior. Although the implementation of PES programs and the context in which these programs are implemented are often different across space, the spatial heterogeneities in the impacts of PES programs are often neglected in studies. In this study, we demonstrate the spatial and temporal dynamics of the Normalized Differential Vegetation Index (NDVI) in the grassland where China’s Grassland Ecological Compensation Program (GECP) has been implemented, and we evaluate the impacts of the GECP on the NDVI. We found that most of the grassland in the GECP area showed small changes in NDVI between 2000 and 2010. On average, the GECP only had a marginal positive effect on the NDVI of grassland. Although the magnitude of impacts of the GECP was relatively small in most places where the program is implemented, we detected substantial heterogeneities in the impacts of the GECP on the NDVI. The impact of the GECP on the NDVI differed substantially, particularly between Inner Mongolia, Sichuan, and other provinces. Our findings suggest that there can be substantial heterogeneities in the impacts of PES programs across space, which can be leveraged to promote the efficacy of the GECP and many other PES programs around the world.

Non-grain agricultural land use (NGALU) could be an alternative to payments for ecosystem services (PES) to achieve ecosystem benefits, given their joint contribution to forest transition. Unraveling the correlation between PES and NGALU can enhance cost-effective decisions. While farmland abandonment and non-grain cash crops (NGCCs) plantation are two main manifestations of NGALU, previous studies have primarily assessed the effects of PES on farmland abandonment. Little is known about the effects of PES on NGCC planting. This study evaluated the effects of China’s two nationwide PES programs (i.e., the Grain to Green Program, GTGP, and the Ecological Welfare Forest Program, EWFP) on NGALU in the Black River Basin of Shaanxi province. The study found a wide adoption of NGALU, with 52% of households adopting NGALU. The total area of NGALU is more than half of the afforested area through the GTGP. A quarter of the NGALU area is abandoned farmland, while the remaining NGALU area is planted with NGCCs. The two PES programs did not have effects on NGCC planting, but reduced farmland abandonment. Engagement in labor migration and local non-farm employment increased NGALU, while livestock breeding and farmland area reduced NGALU. Furthermore, the large area and unfavorable geographical conditions of farmland parcels promoted NGALU. These results highlight the important implications of leveraging NGALU to boost ecological gains from conservation investments.