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Harnessing the Forces of Urban Expansion: The Public Economics of Farmland Development Allowances

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  • Nancy H. Chau
  • Weiwen Zhang

Abstract

For decades, rapid urban expansion has led to concerns over the loss of cultivated land in rural China. This contrasts sharply with another salient feature of the Chinese land policy reform landscape that has gone on largely unnoticed: the addition of newly cultivated land in China through land development has consistently exceeded land conversion. In a model featuring fiscal decentralization, plus local governments as custodians of land use and development, along with a land development allowance policy instituted in 1998, we show that a land development allowance policy can harness the forces of urban expansion to encourage agricultural land development.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 87 (2011)
Issue (Month): 3 ()
Pages: 488-507

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Handle: RePEc:uwp:landec:v:87:y:2011:iii:1:p:488-507

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Web page: http://le.uwpress.org/

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Cited by:
  1. Dennis Rodgers & Jo Beall & Ravi Kanbur, 2011. "Latin American Urban Development into the 21st Century Towards a Renewed Perspective on the City," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  2. Khantachavana, Sivalai V. & Turvey, Calum G. & Kong, Rong & Xia, Xianli, 2013. "On the transaction values of land use rights in rural China," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 863-878.

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