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 and Tong Shen

Land Use Policy, 2020, vol. 95, issue C

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.

Keywords: Transfer of development rights; Land quotas trading; Synthetic control method; Farmland preservation; Urbanization (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:95:y:2020:i:c:s0264837719320551

DOI: 10.1016/j.landusepol.2020.104611

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