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Harnessing the Forces of Urban Expansion –The Public Economics of Farmland Development Allowence

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  • Chau, Nancy H.
  • Zhang, Weiwen

Abstract

For decades, rapid urban expansion has led to concerns over the loss of cultivated land in rural China. Less well known is the fact that development of newly cultivated land has in fact consistently exceeded land conversion from 1999-2006. This paper provides an analytical model that makes sense of this observation, featuring scal decentralization, local governments as custodians of land use and land development, as well as a land development allowance policy put in place in 1998. The model shows how a land development allowance policy can harness and redirect the forces of urban expansion to encourage agricultural land development.

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Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 126964.

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Date of creation: 2010
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Handle: RePEc:ags:cudawp:126964

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Related research

Keywords: land development allowance; fiscal decentralization; inter-jurisdictional competi- tion; agricultural development.; Community/Rural/Urban Development; Land Economics/Use; Public Economics; H11; H77; P35; R5; R14; H11; O18;

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Cited by:
  1. Rodgers, Dennis & Beall, Jo & Kanbur, Ravi, 2011. "LATIN AMERICAN URBAN DEVELOPMENT INTO THE 21ST CENTURY: Towards a Renewed Perspective on the City," Working Papers 126532, Cornell University, Department of Applied Economics and Management.
  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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