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Is Transfer of Development Rights (TDR) feasible? The impact of land use and market-based tools on carbon storage

Author

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  • Wang, Han
  • Kang, Qing
  • Chen, Zhoupeng
  • Li, Fengqin
  • Nie, Xin

Abstract

Market-based instruments and land-use management are key mechanisms for emission reduction, directly influencing regional carbon storage and constituting critical considerations for achieving the “dual-carbon” goals. Previous studies have primarily assessed the response of regional carbon storage to land-use management, while largely overlooking the role of market-based instruments. As an integration of market mechanisms and land-use management, whether Transfer of Development Rights (TDR) can effectively improve regional carbon storage remains unclear. Therefore, it is necessary to explore the impact of TDR on regional carbon storage. This study employs the PLUS model to simulate four land-use scenarios in Guangxi for 2030: Baseline Scenario (BS), Development Scenario (DS), Protection Scenario (PS), and TDR scenarios (TDR). On this basis, the InVEST model is used to quantify carbon storage under each scenario. Through scenario comparison, the impact of TDR on regional carbon storage is identified. The results indicate that TDR improves regional carbon storage by optimizing land-use structure and reallocating development rights across zones. With a total carbon storage of 3269,444.5 × 10⁴t, the TDR represents an optimal solution that balances regional development and ecological protection, aligning with China’s territorial spatial governance and green low-carbon development policies. Therefore, this study provides an effective pathway for promoting low-carbon land use.

Suggested Citation

  • Wang, Han & Kang, Qing & Chen, Zhoupeng & Li, Fengqin & Nie, Xin, 2026. "Is Transfer of Development Rights (TDR) feasible? The impact of land use and market-based tools on carbon storage," Land Use Policy, Elsevier, vol. 171(C).
    • Handle: RePEc:eee:lauspo:v:171:y:2026:i:c:s0264837726003510
    DOI: 10.1016/j.landusepol.2026.108267
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