IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v95y2020ics0264837719320551.html
   My bibliography  Save this article

Transfer of development rights, farmland preservation, and economic growth: a case study of Chongqing’s land quotas trading program

Author

Listed:
  • Wang, Bo
  • Li, Fan
  • Feng, Shuyi
  • Shen, Tong

Abstract

The dilemma between preserving farmland and urbanization has attracted many policymakers’ attention. One sound solution that has been practiced in several developed countries is the “transfer of development rights” (TDR). This study examines a specific TDR program in China—the Chongqing Land Quotas Trading program. We use a synthetic control method on the 2001–2014 statistics of 57 prefectures to quantitatively assess the program’s effect on farmland preservation and economic growth. A mixed method, including both satellite image analysis and qualitative interviews, was also used to obtain some intuitive evidence to understand the mechanism of this program. We find that the Chongqing TDR program has substantially reduced the loss of farmland and played a significant role in stimulating economic growth. We argue that the use of TDR might effectively address the farmland preservation and urbanization dilemma in China.

Suggested Citation

  • Wang, Bo & Li, Fan & Feng, Shuyi & Shen, Tong, 2020. "Transfer of development rights, farmland preservation, and economic growth: a case study of Chongqing’s land quotas trading program," Land Use Policy, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:lauspo:v:95:y:2020:i:c:s0264837719320551
    DOI: 10.1016/j.landusepol.2020.104611
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837719320551
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2020.104611?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul Thorsnes & Gerald P. W. Simons, 1999. "Letting The Market Preserve Land: The Case For A Market‐Driven Transfer Of Development Rights Program," Contemporary Economic Policy, Western Economic Association International, vol. 17(2), pages 256-266, April.
    2. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    3. Cohen, Barney, 2004. "Urban Growth in Developing Countries: A Review of Current Trends and a Caution Regarding Existing Forecasts," World Development, Elsevier, vol. 32(1), pages 23-51, January.
    4. Liu, Yansui, 2018. "Introduction to land use and rural sustainability in China," Land Use Policy, Elsevier, vol. 74(C), pages 1-4.
    5. Jan K. Brueckner, 2000. "Urban Sprawl: Diagnosis and Remedies," International Regional Science Review, , vol. 23(2), pages 160-171, April.
    6. Yaohui Zhao, 1999. "Leaving the Countryside: Rural-to-Urban Migration Decisions in China," American Economic Review, American Economic Association, vol. 89(2), pages 281-286, May.
    7. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    8. Patricia Machemer & Michael Kaplowitz, 2002. "A Framework for Evaluating Transferable Development Rights Programmes," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 45(6), pages 773-795.
    9. Soumya Dharmavaram, 2013. "Land Value Capture in Urban DRM Programs," World Bank Publications - Reports 16113, The World Bank Group.
    10. Yang, Yuanyuan & Liu, Yansui & Li, Yurui & Li, Jintao, 2018. "Measure of urban-rural transformation in Beijing-Tianjin-Hebei region in the new millennium: Population-land-industry perspective," Land Use Policy, Elsevier, vol. 79(C), pages 595-608.
    11. Alberto Abadie & Alexis Diamond & Jens Hainmueller, 2015. "Comparative Politics and the Synthetic Control Method," American Journal of Political Science, John Wiley & Sons, vol. 59(2), pages 495-510, February.
    12. Meg Elizabeth Rithmire, 2017. "Land Institutions and Chinese Political Economy," Politics & Society, , vol. 45(1), pages 123-153, March.
    13. Shahid Yusuf & Tony Saich, 2008. "China Urbanizes : Consequences, Strategies, and Policies," World Bank Publications - Books, The World Bank Group, number 6337, December.
    14. Hu, Feng & Xu, Zhaoyuan & Chen, Yuyu, 2011. "Circular migration, or permanent stay? Evidence from China's rural-urban migration," China Economic Review, Elsevier, vol. 22(1), pages 64-74, March.
    15. Levinson, Arik, 1997. "Why oppose TDRs?: Transferable development rights can increase overall development," Regional Science and Urban Economics, Elsevier, vol. 27(3), pages 283-296, June.
    16. Falco, Enzo & Chiodelli, Francesco, 2018. "The transfer of development rights in the midst of the economic crisis: Potential, innovation and limits in Italy," Land Use Policy, Elsevier, vol. 72(C), pages 381-388.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Song, Min & Yi, Luping & Hu, Can, 2023. "Building up a compensation-oriented transferable development right mechanism: A theoretical and empirical exploration in Hubei, China," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    2. Zhang, Wenxi & Wang, Bo & Wang, Jian & Wu, Qun & Wei, Yehua Dennis, 2022. "How does industrial agglomeration affect urban land use efficiency? A spatial analysis of Chinese cities," Land Use Policy, Elsevier, vol. 119(C).
    3. Long Cheng & Zhengchun Xu & Jintao Li, 2022. "Promote or Demote? Investigating the Impacts of China’s Transferable Development Rights Program on Farmers’ Income: A Case Study from Chongqing," IJERPH, MDPI, vol. 19(21), pages 1-20, October.
    4. Geng, Jinqiang & Huo, Qingqing & Jia, Shanshan, 2023. "Parasitic Behavior and Separation Countermeasures in Large-scale Farming: Insights from Shijiazhuang, China," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 4(4), October.
    5. Fei, Rilong & Lin, Ziyi & Chunga, Joseph, 2021. "How land transfer affects agricultural land use efficiency: Evidence from China’s agricultural sector," Land Use Policy, Elsevier, vol. 103(C).
    6. Xiaoying Wang & Hangang Hu & Aifeng Ning & Guan Li & Xueqi Wang, 2022. "The Impact of Farmers’ Perception on Their Cultivated Land Quality Protection Behavior: A Case Study of Ningbo, China," Sustainability, MDPI, vol. 14(10), pages 1-21, May.
    7. Cheng, Long, 2021. "China’s rural transformation under the Link Policy: A case study from Ezhou," Land Use Policy, Elsevier, vol. 103(C).
    8. Suxia Zhao & Mengmeng Yin, 2023. "Research on Rural Population/Arable Land/Rural Settlements Association Model and Coordinated Development Path: A Case Analysis of the Yellow River Basin (Henan Section)," IJERPH, MDPI, vol. 20(5), pages 1-15, February.
    9. Amponsah, Owusu & Blija, Daniel Kwame & Ayambire, Raphael Anammasiya & Takyi, Stephen Appiah & Mensah, Henry & Braimah, Imoro, 2022. "Global urban sprawl containment strategies and their implications for rapidly urbanising cities in Ghana," Land Use Policy, Elsevier, vol. 114(C).
    10. Yaya Jin & Bangbang Zhang & Hanbing Zhang & Li Tan & Jialin Ma, 2022. "The Scale and Revenue of the Land-Use Balance Quota in Zhejiang Province: Based on the Inverted U-Shaped Curve," Land, MDPI, vol. 11(10), pages 1-17, October.
    11. Ren Yang & Yuancheng Lin, 2022. "Rural spatial transformation and governance from the perspective of land development rights: A case study of Fenghe village in Guangzhou," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1102-1121, September.
    12. Weiguo Fan & Wei Yao & Kehan Chen, 2023. "Integrating Energy Systems Language and Emergy Approach to Simulate and Analyze the Energy Flow Process of Land Transfer," Land, MDPI, vol. 12(5), pages 1-24, May.
    13. Wang, Han & Lu, Siying & Lu, Bo & Nie, Xin, 2021. "Overt and covert: The relationship between the transfer of land development rights and carbon emissions," Land Use Policy, Elsevier, vol. 108(C).
    14. Liu, Yong & Zhao, Wei & Liao, Rong & Wang, Cheng, 2021. "Process analysis of inter-governmental negotiation in delineating permanent prime farmland around cities: The case of Chongqing, China," Land Use Policy, Elsevier, vol. 111(C).
    15. Bin Yang & Zhanqi Wang & Bo Zhang & Di Zhang, 2020. "Allocation Efficiency, Influencing Factors and Optimization Path of Rural Land Resources: A Case Study in Fang County of Hubei Province, China," IJERPH, MDPI, vol. 17(16), pages 1-16, August.
    16. Xiaojing Liu & Xiao Zhang & Mingsheng Wang & Zhongxing Guo, 2022. "Is Urban and Rural Construction Land Quota Trading “Chicken Ribs”? An Empirical Study on Chongqing, China," Land, MDPI, vol. 11(11), pages 1-19, November.
    17. Jing Xu & Jing Huang & Zhengfeng Zhang & Xiaokun Gu, 2021. "The Impact of Family Capital on Farmers’ Participation in Farmland Transfer: Evidence from Rural China," Land, MDPI, vol. 10(12), pages 1-20, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Long Cheng & Zhengchun Xu & Jintao Li, 2022. "Promote or Demote? Investigating the Impacts of China’s Transferable Development Rights Program on Farmers’ Income: A Case Study from Chongqing," IJERPH, MDPI, vol. 19(21), pages 1-20, October.
    2. J. Peter Clinch & Eoin O'Neill, 2010. "Assessing the Relative Merits of Development Charges and Transferable Development Rights in an Uncertain World," Urban Studies, Urban Studies Journal Limited, vol. 47(4), pages 891-911, April.
    3. Xiaojing Liu & Xiao Zhang & Mingsheng Wang & Zhongxing Guo, 2022. "Is Urban and Rural Construction Land Quota Trading “Chicken Ribs”? An Empirical Study on Chongqing, China," Land, MDPI, vol. 11(11), pages 1-19, November.
    4. Daniel Albalate & Germà Bel & Ferran A. Mazaira-Font, 2020. "Ensuring Stability, Accuracy and Meaningfulness in Synthetic Control Methods: The Regularized SHAP-Distance Method," IREA Working Papers 202005, University of Barcelona, Research Institute of Applied Economics, revised Apr 2020.
    5. Bruno Ferman & Cristine Pinto & Vitor Possebom, 2020. "Cherry Picking with Synthetic Controls," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(2), pages 510-532, March.
    6. Manuel Funke & Moritz Schularick & Christoph Trebesch, 2023. "Populist Leaders and the Economy," American Economic Review, American Economic Association, vol. 113(12), pages 3249-3288, December.
    7. Maximiliano Marzetti & Rok Spruk, 2023. "Long-Term Economic Effects of Populist Legal Reforms: Evidence from Argentina," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(1), pages 60-95, March.
    8. Chiara Cavaglia & Sandra McNally & Henry G. Overman, 2020. "Devolving Skills: The Case of the Apprenticeship Grant for Employers," Fiscal Studies, John Wiley & Sons, vol. 41(4), pages 829-849, December.
    9. Sadeghi, Ali & Kibler, Ewald, 2022. "Do bankruptcy laws matter for entrepreneurship? A Synthetic Control Method analysis of a bankruptcy reform in Finland," Journal of Business Venturing Insights, Elsevier, vol. 18(C).
    10. Augusto Cerqua & Roberta Di Stefano, 2022. "When did coronavirus arrive in Europe?," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 31(1), pages 181-195, March.
    11. César Martinelli & Marco Vega, 2019. "The Economic Legacy of General Velasco: Long-Term Consequences of Interventionism," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, vol. 42(84), pages 102-133.
    12. Kodjo Adandohoin & Vigninou Gammadigbe, 2022. "The revenue efficiency consequences of the announcement of a tax transition reform: The case of WAEMU countries," African Development Review, African Development Bank, vol. 34(S1), pages 195-218, July.
    13. Niklas Potrafke & Fabian Ruthardt & Kaspar Wuthrich, 2020. "Protectionism and economic growth: Causal evidence from the first era of globalization," Papers 2010.02378, arXiv.org, revised Mar 2022.
    14. Samer Matta & Michael Bleaney & Simon Appleton, 2022. "The economic impact of political instability and mass civil protest," Economics and Politics, Wiley Blackwell, vol. 34(1), pages 253-270, March.
    15. Silvia Marchesi & Tania Masi, 2019. "Sovereign risk after sovereign restructuring. Private and official default," Working Papers 423, University of Milano-Bicocca, Department of Economics, revised Nov 2019.
    16. Michael Funke & Kadri Männasoo & Helery Tasane, 2023. "Regional Economic Impacts of the Øresund Cross-Border Fixed Link: Cui Bono?," CESifo Working Paper Series 10557, CESifo.
    17. Barseghyan, Gayane, 2019. "Sanctions and counter-sanctions : What did they do?," BOFIT Discussion Papers 24/2019, Bank of Finland, Institute for Economies in Transition.
    18. Rohan Best & Paul J. Burke, 2019. "Macroeconomic impacts of the 2010 earthquake in Haiti," Empirical Economics, Springer, vol. 56(5), pages 1647-1681, May.
    19. Flamini, Alessandro & Jahanshahi, Babak & Mohaddes, Kamiar, 2021. "Illegal drugs and public corruption: Crack based evidence from California," European Journal of Political Economy, Elsevier, vol. 69(C).
    20. Patrick Duenow & Luke B. Connelly, 2024. "The effect of gun buy‐back law reform on homicides and suicides in Australia," Health Economics, John Wiley & Sons, Ltd., vol. 33(2), pages 248-279, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:95:y:2020:i:c:s0264837719320551. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.