Trading Land Development Rights Under a Planned Land Use System: The Zhejiang Model

China & World Economy, Vol. 17, No. 1, pp. 66-82, January-February 2009

17 Pages Posted: 4 Feb 2009

See all articles by Hui Wang

Hui Wang

Zhejiang University

Ran Tao

Chinese Academy of Sciences (CAS)

Juer Tong

Zhejiang University - College of Public Administration

Abstract

China's state planned land use system, including regulations such as setting planned quotas for land use, basic cropland preservation, and pursuing a balance between the conversion of arable land into non-agricultural use and the supplement of new agricultural land, has substantially constrained the economic growth of industrial provinces in China. This article explores the innovative reforms adopted by Zhejiang Province through land development rights (LDR) transfer within a locality and LDR trading across localities. We argue that there is a Zhejiang model of LDR transferring and trading, which, we believe, has significant implications not only for fostering an efficiency-enhancing market for land development rights and agricultural land preservation, but also for optimal use of land and a more balanced regional development. One important policy issue relating to China's rural land system is that under China's land requisition system, farmers are usually under compensated for urban land-taking.

Suggested Citation

Wang, Hui and Tao, Ran and Tong, Juer, Trading Land Development Rights Under a Planned Land Use System: The Zhejiang Model. China & World Economy, Vol. 17, No. 1, pp. 66-82, January-February 2009, Available at SSRN: https://ssrn.com/abstract=1335598 or http://dx.doi.org/10.1111/j.1749-124X.2009.01131.x

Hui Wang

Zhejiang University ( email )

38 Zheda Road
Hangzhou, Zhejiang 310058
China

Ran Tao

Chinese Academy of Sciences (CAS) ( email )

52 Sanlihe Rd.
Datun Road, Anwai
Beijing, Xicheng District 100864
China

Juer Tong

Zhejiang University - College of Public Administration ( email )

Zheda Road 38
Hangzhou, Zhejiang 310027
China

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