The impact of land leasing strategies on industrial green total factor productivity: Insights from Chinese cities

Shurong Yao, Haiwei Li and Zhongqi Deng

Land Use Policy, 2025, vol. 156, issue C

Abstract: In China, local governments’ land leasing strategies (LLS) have played a pivotal role in shaping the country’s industrial landscape and significantly influencing climate change. Using microdata on land leasing from 281 Chinese cities, this study examines the effects of governmental LLS on industrial green total factor productivity (IGTFP) through a panel fixed-effects model and a spatial Durbin model. The empirical findings indicate that LLS significantly impact both industrial development and environmental sustainability. Specifically, a large leasing scale, a leasing structure favoring highly polluting industries, combined with limited market-oriented leasing methods and low leasing prices, hinder IGTFP. Over time, China’s local governments have gradually shifted their LLS from a singular focus on economic growth to a more balanced approach that incorporates environmental considerations, which may offer valuable insights for other developing countries seeking to enhance their land management systems. This study emphasizes the critical role of LLS in industrial development and highlights the necessity of market-oriented LLS reforms to foster high-quality industrial growth.

Keywords: Land leasing strategies; Land misallocation; Green total factor productivity; Sustainable development (search for similar items in EconPapers)
JEL-codes: L16 Q56 R52 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:156:y:2025:i:c:s0264837725001413

DOI: 10.1016/j.landusepol.2025.107607

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