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Effects of the Chinese arable land fallow system and land-use change on agricultural production and on the economy

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  • Wang, Can
  • Siriwardana, Mahinda
  • Meng, Samuel

Abstract

This study focuses on economic effects of arable land fallow system and land-use change in China using a dynamic single-country, multi-regional computable general equilibrium model. Land supply is adjusted endogenously in our model. Land use in each of 31 provinces is tracked by a land-use change module, which is calibrated with satellite data. Our results reveal that the expansion of real output can be attributed to the increase in capital stock as a result of the growth of investment due to the imposition of the arable land fallow system in China. And the growth of investment is caused by the release of labor from agriculture The reduced supply of arable land in agricultural land contraction regions is partially offset by the increasing arable land in agricultural land expansion regions. Rural households benefit more than urban households from the arable land fallow policy due to relatively higher income and lower rural CPI.

Suggested Citation

  • Wang, Can & Siriwardana, Mahinda & Meng, Samuel, 2019. "Effects of the Chinese arable land fallow system and land-use change on agricultural production and on the economy," Economic Modelling, Elsevier, vol. 79(C), pages 186-197.
    • Handle: RePEc:eee:ecmode:v:79:y:2019:i:c:p:186-197
    DOI: 10.1016/j.econmod.2018.10.012
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    Cited by:

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    2. Wang, Can & Deng, Mengzhi & Deng, Junfeng, 2020. "Factor reallocation and structural transformation implications of grain subsidies in China," Journal of Asian Economics, Elsevier, vol. 71(C).
    3. Movahedi, Reza & Jawanmardi, Sina & Azadi, Hossein & Goli, Imaneh & Viira, Ants-Hannes & Witlox, Frank, 2021. "Why do farmers abandon agricultural lands? The case of Western Iran," Land Use Policy, Elsevier, vol. 108(C).
    4. Jianxu Liu & Heng Wang & Sanzidur Rahman & Songsak Sriboonchitta, 2021. "Energy Efficiency, Energy Conservation and Determinants in the Agricultural Sector in Emerging Economies," Agriculture, MDPI, vol. 11(8), pages 1-18, August.
    5. Nong, Duy & Nguyen, Duong Binh & Nguyen, Trung H. & Wang, Can & Siriwardana, Mahinda, 2020. "A stronger energy strategy for a new era of economic development in Vietnam: A quantitative assessment," Energy Policy, Elsevier, vol. 144(C).
    6. Peng Cheng & Houtian Tang & Yue Dong & Ke Liu & Ping Jiang & Yaolin Liu, 2021. "Knowledge Mapping of Research on Land Use Change and Food Security: A Visual Analysis Using CiteSpace and VOSviewer," IJERPH, MDPI, vol. 18(24), pages 1-22, December.
    7. Yu, Zhenning & Yao, Lan & Wu, Mengya, 2020. "Farmers’ attitude towards the policy of remediation during fallow in soil fertility declining and heavy metal polluted area of China," Land Use Policy, Elsevier, vol. 97(C).
    8. Huaicheng Li & Qing He & Chenming Liu & Wei Dai & Rilong Fei, 2022. "How to Maintain Sustainable Development of China’s Agriculture under the Restriction of Production Resources? Research with Respect to the Effect on Output of the Substitution of Input Factors," Energies, MDPI, vol. 15(10), pages 1-19, May.
    9. Liangzhen Zang & Yahua Wang & Yiqing Su, 2021. "Does Farmland Scale Management Promote Rural Collective Action? An Empirical Study of Canal Irrigation Systems in China," Land, MDPI, vol. 10(11), pages 1-25, November.
    10. Chen, Xin & Jiang, Li & Zhang, Guoliang & Meng, Lijun & Pan, Zhihua & Lun, Fei & An, Pingli, 2021. "Green-depressing cropping system: A referential land use practice for fallow to ensure a harmonious human-land relationship in the farming-pastoral ecotone of northern China," Land Use Policy, Elsevier, vol. 100(C).
    11. Chen, You-hua & Chen, Mei-xia & Mishra, Ashok K., 2020. "Subsidies under uncertainty: Modeling of input- and output-oriented policies," Economic Modelling, Elsevier, vol. 85(C), pages 39-56.

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    More about this item

    Keywords

    Land contamination; Land-use change; Land supply; Food security; Rural income; Computable general equilibrium model; Q15; Q24; Q18; C68;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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