IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i12p3277-d239669.html
   My bibliography  Save this article

Whether Urban Development and Ecological Protection Can Achieve a Win-Win Situation—The Nonlinear Relationship between Urbanization and Ecosystem Service Value in China

Author

Listed:
  • Yingtao Wu

    () (School of Finance and Business, Shanghai Normal University, Shanghai 200234, China)

  • Maogang Tang

    () (School of Business and Institute for Advanced Study in Social Sciences, East China University of Science and Technology, Shanghai 200237, China)

  • Zhonghao Zhang

    () (Institute of Urban Studies, School of Environmental and Geographic Science, Shanghai Normal University, Shanghai 200234, China
    Northwest Institute of Eco-Environment and Resources, Chinese Academy of Sciences, Lanzhou 73000, China)

  • Baijun Wu

    () (School of Business, East China University of Science and Technology, Shanghai 200237, China)

Abstract

Most of the existing research on urbanization suggests that urbanization leads to a decline in ecosystem services values (ESV). However, the impacts of industrial structure and changes in land use patterns on ESV have often been ignored. Using provincial data in China from 2003 to 2015, this study demonstrates the possibility of achieving a win-win situation regarding urbanization and ESV enhancement at the global and regional scales. The negative effect from production processes and the influence of residents’ preferences are considered in the evaluation of ESV. The impact of urbanization on ESV is empirically analyzed by using a spatially adaptive semi-parametric model in order to mitigate both endogeneity of the parametric model and the curse of dimensionality in nonparametric model. The results show that there is a U-shaped curve relationship between urbanization and ESV for the whole country. However, most provinces of China are still located at the left side of the U-shaped curve where urbanization reduces the ESV per capita. Central and local governments should strengthen differentiated land use policies, environmental regulations, and finance and tax policies to transform the industrial structure, so that each province may achieve a win-win situation regarding urbanization and ESV enhancement. Such policy changes would promote sustainable development in China.

Suggested Citation

  • Yingtao Wu & Maogang Tang & Zhonghao Zhang & Baijun Wu, 2019. "Whether Urban Development and Ecological Protection Can Achieve a Win-Win Situation—The Nonlinear Relationship between Urbanization and Ecosystem Service Value in China," Sustainability, MDPI, Open Access Journal, vol. 11(12), pages 1-15, June.
  • Handle: RePEc:gam:jsusta:v:11:y:2019:i:12:p:3277-:d:239669
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/12/3277/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/11/12/3277/
    Download Restriction: no

    References listed on IDEAS

    as
    1. Deng, Xiangzheng & Huang, Jikun & Rozelle, Scott & Uchida, Emi, 2008. "Growth, population and industrialization, and urban land expansion of China," Journal of Urban Economics, Elsevier, vol. 63(1), pages 96-115, January.
    2. Lichtenberg, Erik & Ding, Chengri, 2009. "Local officials as land developers: Urban spatial expansion in China," Journal of Urban Economics, Elsevier, vol. 66(1), pages 57-64, July.
    3. Zein Kallas & José A. Gómez‐Limón & Manuel Arriaza, 2007. "Are citizens willing to pay for agricultural multifunctionality?," Agricultural Economics, International Association of Agricultural Economists, vol. 36(3), pages 405-419, May.
    4. Baglan, Deniz & Yoldas, Emre, 2014. "Non-linearity in the inflation–growth relationship in developing economies: Evidence from a semiparametric panel model," Economics Letters, Elsevier, vol. 125(1), pages 93-96.
    5. Fontana, Veronika & Radtke, Anna & Bossi Fedrigotti, Valérie & Tappeiner, Ulrike & Tasser, Erich & Zerbe, Stefan & Buchholz, Thomas, 2013. "Comparing land-use alternatives: Using the ecosystem services concept to define a multi-criteria decision analysis," Ecological Economics, Elsevier, vol. 93(C), pages 128-136.
    6. Bolund, Per & Hunhammar, Sven, 1999. "Ecosystem services in urban areas," Ecological Economics, Elsevier, vol. 29(2), pages 293-301, May.
    7. Bryan, Brett A. & Ye, Yanqiong & Zhang, Jia'en & Connor, Jeffery D., 2018. "Land-use change impacts on ecosystem services value: Incorporating the scarcity effects of supply and demand dynamics," Ecosystem Services, Elsevier, vol. 32(PA), pages 144-157.
    8. Vieu, Philippe, 1994. "Choice of regressors in nonparametric estimation," Computational Statistics & Data Analysis, Elsevier, vol. 17(5), pages 575-594, June.
    9. Turnbull, Geoffrey K., 2004. "Urban growth controls: transitional dynamics of development fees and growth boundaries," Journal of Urban Economics, Elsevier, vol. 55(2), pages 215-237, March.
    Full references (including those not matched with items on IDEAS)

    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. Tang, Maogang & Li, Xiuzhen & Zhang, Yun & Wu, Yingtao & Wu, Baijun, 2020. "From command-and-control to market-based environmental policies: Optimal transition timing and China’s heterogeneous environmental effectiveness," Economic Modelling, Elsevier, vol. 90(C), pages 1-10.
    2. Li, Man, 2014. "An evaluation of the effectiveness of farmland protection policy in China:," IFPRI discussion papers 1348, International Food Policy Research Institute (IFPRI).
    3. Guan Li & Zhongguo Xu & Cifang Wu & Yuefei Zhuo & Xinhua Tong & Yanfei Wei & Xiaoqiang Shen, 2019. "Inside or Outside? The Impact Factors of Zoning–Land Use Mismatch," Sustainability, MDPI, Open Access Journal, vol. 12(1), pages 1-1, December.
    4. Jipeng Zhang & Jianyong Fan & Jiawei Mo, 2017. "Government Intervention, Land Market, And Urban Development: Evidence From Chinese Cities," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 115-136, January.
    5. Li Gan & Qing He & Ruichao Si & Daichun Yi, 2019. "Relocating or Redefined: A New Perspective on Urbanization in China," NBER Working Papers 26585, National Bureau of Economic Research, Inc.
    6. Zhao, Qianyu & Zhang, Zhanlu, 2017. "Does China’s ‘increasing versus decreasing balance’ land-restructuring policy restructure rural life? Evidence from Dongfan Village, Shaanxi Province," Land Use Policy, Elsevier, vol. 68(C), pages 649-659.
    7. Han, Li & Kung, James Kai-Sing, 2015. "Fiscal incentives and policy choices of local governments: Evidence from China," Journal of Development Economics, Elsevier, vol. 116(C), pages 89-104.
    8. Li, Lixing, 2011. "The incentive role of creating "cities" in China," China Economic Review, Elsevier, vol. 22(1), pages 172-181, March.
    9. Xianwei Fan & Dan Zheng & Minjun Shi, 2016. "How Does Land Development Promote China’s Urban Economic Growth? The Mediating Effect of Public Infrastructure," Sustainability, MDPI, Open Access Journal, vol. 8(3), pages 1-12, March.
    10. Christensen, Peter & McCord, Gordon C., 2016. "Geographic determinants of China's urbanization," Regional Science and Urban Economics, Elsevier, vol. 59(C), pages 90-102.
    11. repec:gam:jsusta:v:8:y:2016:i:3:p:279:d:65950 is not listed on IDEAS
    12. Yanjing Zhang & Zhengguo Su & Guan Li & Yuefei Zhuo & Zhongguo Xu, 2018. "Spatial-Temporal Evolution of Sustainable Urbanization Development: A Perspective of the Coupling Coordination Development Based on Population, Industry, and Built-Up Land Spatial Agglomeration," Sustainability, MDPI, Open Access Journal, vol. 10(6), pages 1-20, May.
    13. Jun Ren & Wei Zhou & Xuelu Liu & Liang Zhou & Jing Guo & Yonghao Wang & Yanjun Guan & Jingtian Mao & Yuhan Huang & Rongrong Ma, 2019. "Urban Expansion and Growth Boundaries in an Oasis City in an Arid Region: A Case Study of Jiayuguan City, China," Sustainability, MDPI, Open Access Journal, vol. 12(1), pages 1-1, December.
    14. Liu, Yongzheng & Alm, James, 2016. "“Province-Managing-County” fiscal reform, land expansion, and urban growth in China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 82-100.
    15. Man Li & JunJie Wu & Xiangzheng Deng, 2013. "Identifying Drivers of Land Use Change in China: A Spatial Multinomial Logit Model Analysis," Land Economics, University of Wisconsin Press, vol. 89(4), pages 632-654.
    16. Li Ji & Wei Zhang, 2019. "Fiscal Incentives and Sustainable Urbanization: Evidence from China," Sustainability, MDPI, Open Access Journal, vol. 12(1), pages 1-1, December.
    17. Anglin, Paul M. & Dale-Johnson, David & Gao, Yanmin & Zhu, Guozhong, 2014. "Patterns of growth in Chinese cities: Implications of the land lease," Journal of Urban Economics, Elsevier, vol. 83(C), pages 87-107.
    18. Fan, Shenggen & Li, Lixing & Zhang, Xiaobo, 2012. "Challenges of creating cities in China: Lessons from a short-lived county-to-city upgrading policy," Journal of Comparative Economics, Elsevier, vol. 40(3), pages 476-491.
    19. Li Fang & Chuanhao Tian & Xiaohong Yin & Yan Song, 2018. "Political Cycles and the Mix of Industrial and Residential Land Leasing," Sustainability, MDPI, Open Access Journal, vol. 10(9), pages 1-24, August.
    20. Li, Wanxin, 2016. "Failure by design – National mandates and agent control of local land use in China," Land Use Policy, Elsevier, vol. 52(C), pages 518-526.
    21. Feng, Juan & Lichtenberg, Erik & Ding, Chengri, 2015. "Balancing act: Economic incentives, administrative restrictions, and urban land expansion in China," China Economic Review, Elsevier, vol. 36(C), pages 184-197.

    More about this item

    Keywords

    urbanization; ecosystem service value; spatially adaptive semi-parametric model; win-win situation; China;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    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:gam:jsusta:v:11:y:2019:i:12:p:3277-:d:239669. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: https://www.mdpi.com/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.