This paper studies the relationship among population, poverty, and the
environmental factors, and the impact they have had on China's land,
water, forests and pastures, It does so by examining the extent of env
ironmental degradation and China's success in controlling its environm
ental problems is reviewed; by investigating how the leadership has tr
ied to develop a legal framework and series of institutions to carry o
ut environmental policy; and by providing empirical evidence demonstra
ting the determinants of the successes that China has achieved int sur
mounting (or slowing) some of its environmental problems, Five of Chin
a's rural resource concerns are surveyed in this paper: water pollutio
n, deforestation, destruction of the grasslands, soil erosion, and sal
inization, The paper finds that government policy has not been effecti
ve in controlling rural resource degradation primarily because it has
limited fiscal resources and poorly trained personnel, and under these
constraints the government has delegated responsibility for environme
ntal and resource protection to the ministries of agriculture and fore
stry, two institutions that have an incentive to favor pro-production
policies, Instead, China's efforts to alleviate policy, integrate mark
ets, and control population appear to have helped mitigate a number of
adverse environmental consequences of China's development effort of t
he last 40 years.