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

Author

Listed:
  • 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.

Suggested Citation

  • Chau, Nancy H. & Zhang, Weiwen, 2010. "Harnessing the Forces of Urban Expansion –The Public Economics of Farmland Development Allowence," Working Papers 126964, Cornell University, Department of Applied Economics and Management.
  • Handle: RePEc:ags:cudawp:126964
    DOI: 10.22004/ag.econ.126964
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    2. Shenghua Lu & Hui Wang, 2020. "Distributive politics in China: Regional favouritism and expansion of construction land," Urban Studies, Urban Studies Journal Limited, vol. 57(8), pages 1600-1619, June.
    3. Shenghua Lu & Hui Wang, 2022. "Limited Decentralization: Understand China’s Land System from the Perspective of Central-Local Relation," Land, MDPI, vol. 11(4), pages 1-15, April.
    4. Wen, Lan-jiao & Butsic, Van & Stapp, Jared R. & Zhang, An-lu, 2020. "What happens to land price when a rural construction land market legally opens in China? A spatiotemporal analysis of Nanhai district from 2010 to 2015," China Economic Review, Elsevier, vol. 62(C).
    5. Chau, Nancy H. & Qin, Yu & Zhang, Weiwen, 2016. "Leader Networks and Transaction Costs: A Chinese Experiment in Interjurisdictional Contracting," IZA Discussion Papers 9641, Institute of Labor Economics (IZA).
    6. Chau, Nancy H. & Qin, Yu & Zhang, Weiwen, 2015. "Networked Leaders in the Shadow of the Market – A Chinese Experiment in Allocating Land Conversion Rights," Working Papers 250022, Cornell University, Department of Applied Economics and Management.
    7. Peng, Y. & Turvey, C. & Kong, R., 2018. "An Analysis of China s Reforms on Mortgaging and Transacting Rural Land Use Rights and Entrepreneurial Activity," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277308, International Association of Agricultural Economists.
    8. Cao, Rui-fen & Zhang, An-lu & Cai, Yin-ying & Xie, Xiang-xiang, 2020. "How imbalanced land development affects local fiscal condition? A case study of Hubei Province, China," Land Use Policy, Elsevier, vol. 99(C).
    9. Wen, Lanjiao & Chatalova, Lioudmila & Butsic, Van & Hu, Fox ZhiYong & Zhang, Anlu, 2020. "Capitalization of land development rights in rural China: A choice experiment on individuals’ preferences in peri-urban Shanghai," Land Use Policy, Elsevier, vol. 97(C).
    10. Wen Wang & Fangzhi Ye, 2016. "The Political Economy of Land Finance in China," Public Budgeting & Finance, Wiley Blackwell, vol. 36(2), pages 91-110, June.
    11. Yanwei Zhang & Xinhai Lu & Yucheng Zou & Tiangui Lv, 2022. "Nudging Strategies for Arable Land Protection Behavior in China," IJERPH, MDPI, vol. 19(19), pages 1-20, October.
    12. Yaya Jin & Bangbang Zhang & Hanbing Zhang & Li Tan & Jialin Ma, 2022. "The Scale and Revenue of the Land-Use Balance Quota in Zhejiang Province: Based on the Inverted U-Shaped Curve," Land, MDPI, vol. 11(10), pages 1-17, October.
    13. 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.
    14. Guo, Shen & Shi, Yingying, 2018. "Infrastructure investment in China: A model of local government choice under land financing," Journal of Asian Economics, Elsevier, vol. 56(C), pages 24-35.
    15. Tao Chen & Youchao Tan & Jinghua Wang & Cheng (Colin) Zeng, 2022. "The Unintended Consequence of Land Finance: Evidence from Corporate Tax Avoidance," Management Science, INFORMS, vol. 68(11), pages 8319-8342, November.
    16. Dennis Rodgers & Jo Beall & Ravi Kanbur, 2011. "Latin American Urban Development into the 21st Century: Towards a Renewed Perspective on the City," WIDER Working Paper Series wp-2011-005, World Institute for Development Economic Research (UNU-WIDER).
    17. Xiaoping Zhong & Shaojie Zhou & Xiaohua Yu, 2024. "Land market misallocation, regional integration, and economic growth: Evidence from the Yangtze River Delta Region, China," Public Administration & Development, Blackwell Publishing, vol. 44(1), pages 17-31, February.

    More about this item

    Keywords

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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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