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GTAP Resource #4808

"The Impact of the change of China’s Land use regulation"
by Li, Shantong and Jianwu He

Since the 1990s, local governments in China carried out very favorable land policies in order to attract investment, such as using very low land price. On the one hand, it did promote the industrial agglomeration, and accelerated the process of industrialization. But on the other hand, since there was excessive competition, it also resulted in very low efficiency of land use and land price was even lower than the cost of land levelling. In 2014, the price of industrial land is only730 yuan / square meter, just one ninth of business land and one seventh of residential land. There exists obvious price distortion for different use of land. How to adjust the structure of land use and to enhance the efficiency of land use has become a very important task for China’s development in the future.

As for adjusting the structure of land, there are three types of land policies: Firstly, the price is used as a measure to modify the structure of land use and improve the efficiency of land use; Secondly, different standards of efficiency are set for different land use to adjust the structure of land use; Thirdly, different quotas are set for different lands to adjust the structure of land use directly. Actually different policies have different effects. This study will build a computable general model for the analysis of Chinas land policy. The study will also design different policy scenarios for land use and simulate them with China’s computable general model. Based on the result of simulation, the paper will show some suggestion to China’s policy marker to adjust land policy.

Resource Details (Export Citation) GTAP Keywords
Category: 2015 Conference Paper
Status: Published
By/In: Presented at the 18th Annual Conference on Global Economic Analysis, Melbourne, Australia
Date: 2015
Created: He, J. (4/17/2015)
Updated: He, J. (4/17/2015)
Visits: 1,242
- Land use
- Economic development
- Asia (East)

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