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Porter effect test for construction land reduction

Keqiang Wang, Guoxiang Li and Hongmei Liu

Land Use Policy, 2021, vol. 103, issue C

Abstract: Differences-in-Differences (DID) and Stochastic Frontier Analysis (SFA) are adopted to investigate the realistic and potential effects of construction land reduction on sustainable economic development. It is found that in the short term, construction land reduction will have negative effects on the labor market of the regional economy. While significantly reducing pollutant emission intensity, this reduction will lead to factor mismatch and idleness and then inhibit construction land use efficiency, which will inhibit the Porter effect; the reduction quota will not meet the condition of cross-regional flow. Construction land reduction will produce significant short-term economic benefits when the reduction scale is controlled at 1.453∼4.403 ha per year. If local governments pay more attention to the long-term benefits, the scale of reduction can be slightly increased on this basis. The greater the financial pressure is, the smaller the scale of the reduction, and it will be easy to make the local financial network fall into the Matthew effect trap. However, financial subsidies from both the district and municipality level can effectively alleviate this problem. In the long term, construction land reduction can significantly improve construction land use efficiency and generate the Porter effect. In addition, the cross-regional flow of the reduction quota can be feasible, which can significantly increase the potential economic dividends for the entire region. Although construction land reduction will generate short-term difficulties, it can significantly promote sustainable economic development in the long term, resulting in a new model of sustainable land use promoting economic development and environmental sustainability.

Keywords: Construction land; Reduction; Sustainable development; Financial pressure (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:103:y:2021:i:c:s0264837721000338

DOI: 10.1016/j.landusepol.2021.105310

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