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Capitalization of land development rights in rural China: A choice experiment on individuals’ preferences in peri-urban Shanghai

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  • Wen, Lanjiao
  • Chatalova, Lioudmila
  • Butsic, Van
  • Hu, Fox ZhiYong
  • Zhang, Anlu

Abstract

The capitalization of land development rights is acknowledged as the key to improving compensations for rural landholders and ameliorating land-related social conflicts in peri-urban China. Investigations into reasonable as well as feasible compensation standards and the capitalization mechanism are yet to be done. This study uses a survey-based choice experiment to empirically estimate the value of land development rights in peri-urban Shanghai for three forms of rural land conversion – acquisition, consolidation and (informal) sale. The results show that heterogeneity across individuals’ preferences translates into different utilities from land development, which affects individual’s willingness to participate in this process. This effect is found to be the strongest for land sales on the informal market. If, however, land conversion is managed by local governments and rural collectives, the expected utilities of individuals have no significant effect on the amount of land development. The results suggest that capitalizing land development rights under consideration of land attributes and individuals’ preferences would lift compensation standard to a level that strikes a balance among competing land-related interests. In addition, it would promote China’s land development by bypassing the institutional constraints imposed by the current land tenure system.

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  • 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).
    • Handle: RePEc:eee:lauspo:v:97:y:2020:i:c:s0264837720301137
    DOI: 10.1016/j.landusepol.2020.104803
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    3. Xin Yan & Yuejian Wang & Na Liao & Hailiang Xu & Zili Fan, 2021. "Assessment of Value Changes and Spatial Differences in Land Use Based on an Empirical Survey in the Manas River Basin," Land, MDPI, vol. 10(9), pages 1-19, September.
    4. Zhaoxia Guo & Qinqin Guo & Yujie Cai & Ge Wang, 2021. "Unraveling Risk Networks of Cultivated Land Protection: An Exploratory Stakeholder-Oriented Case Study in Xiliuhe Town, Hubei Province, China," Land, MDPI, vol. 10(11), pages 1-26, November.
    5. Nie, Xin & Li, Xiaojuan & Lyu, Chengyu & Su, Yanglan & Wang, Han, 2024. "Can ecological compensation based on the transfer of development rights (TDR) improve ecosystem service value? A multi-scenario simulation," Land Use Policy, Elsevier, vol. 138(C).
    6. Guo, Jingpeng & Zhao, Yinghui & Li, Frank Yonghong & Mao, Kebiao & He, Jinfeng & He, Qiang, 2024. "Developing a land development compensation model for returned land in tract expropriation: Towards a unified urban-rural land market in China," Land Use Policy, Elsevier, vol. 139(C).
    7. Wen, Lanjiao & Yang, Shenjie & Qi, Mengna & Zhang, Anlu, 2024. "How does China’s rural collective commercialized land market run? New evidence from 26 pilot areas, China," Land Use Policy, Elsevier, vol. 136(C).

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