How Has Land Restriction Policy Influenced Green Total Factor Productivity? Evidence from Chinese Cities

Shengyan Xu (), Miao Liu, Ping Hua () and Yibo Chen
Additional contact information
Shengyan Xu: School of Economics and Finance, Hohai University, Changzhou 213200, China
Miao Liu: School of Economics and Finance, Hohai University, Changzhou 213200, China
Ping Hua: CNRS, EconomiX, Université Paris Nanterre, 92001 Nanterre, France
Yibo Chen: School of Economics and Finance, Hohai University, Changzhou 213200, China

Land, 2024, vol. 13, issue 12, 1-26

Abstract: In 2014, China implemented a policy to limit land supply for new industrial construction in city centers with more than 5 million people to decrease the pollution of urban areas caused by industrialization. We aimed to study whether this land restriction policy (LRP) has been conducive to enhancing urban green total factor productivity (GTFP) with the goal of achieving long-term sustainable urban development. We formulated our hypotheses based on theoretical analysis. We used the difference-in-differences method and the data from prefecture-level cities from 1999 to 2017 for verification. The findings indicate that the LRP has improved the urban GTFP via (1) increasing the allocation efficiency of land transfer; (2) increasing land prices and transforming the industrial structure to tertiary industry; and (3) decreasing newly built firms, investments, patents for inventions, and technological innovation. Consequently, a selected land policy favoring green industry is required to prevent urban deindustrialization and to support the sustainable industrial development of the urban economy throughout the low-carbon transition.

Keywords: land restriction policy; green total factor productivity; sustainable development; China (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2073-445X/13/12/2249/pdf (application/pdf)
https://www.mdpi.com/2073-445X/13/12/2249/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jlands:v:13:y:2024:i:12:p:2249-:d:1549880

Access Statistics for this article

Land is currently edited by Ms. Carol Ma

More articles in Land from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().