Transfer of development rights, farmland preservation, and economic growth: a case study of Chongqing's land quotas trading program

Bo Wang, Fan Li, Shuyi Feng*, Tong Shen

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

27 Citations (Scopus)

Abstract

The dilemma between preserving farmland and urbanization has attracted many policymakers’ attention. One sound solution that has been practiced in several developed countries is the “transfer of development rights” (TDR). This study examines a specific TDR program in China—the Chongqing Land Quotas Trading program. We use a synthetic control method on the 2001–2014 statistics of 57 prefectures to quantitatively assess the program's effect on farmland preservation and economic growth. A mixed method, including both satellite image analysis and qualitative interviews, was also used to obtain some intuitive evidence to understand the mechanism of this program. We find that the Chongqing TDR program has substantially reduced the loss of farmland and played a significant role in stimulating economic growth. We argue that the use of TDR might effectively address the farmland preservation and urbanization dilemma in China.

Original languageEnglish
Article number104611
JournalLand Use Policy
Volume95
DOIs
Publication statusPublished - Jun 2020

Keywords

  • Farmland preservation
  • Land quotas trading
  • Synthetic control method
  • Transfer of development rights
  • Urbanization

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