Land Resource Allocation and Green Economic Development: Threshold Effect on Local Government Functional Performance in China

Yuyuan Wen (), Fangfang Li () and Zhiqing Wang
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Yuyuan Wen: School of Applied Economics, Renmin University of China, Beijing 100872, China
Fangfang Li: School of Applied Economics, Renmin University of China, Beijing 100872, China
Zhiqing Wang: School of Public Policy and Management, Tsinghua University, Beijing 100084, China

Land, 2025, vol. 14, issue 3, 1-22

Abstract: Given the increasing scarcity of natural resources and the global imperative for sustainable development, the relationship between land resource allocation and green economic efficiency remains crucial but underexplored. This study, utilizing land transfer data from China Land Market Network, examines 285 cities at or above the prefectural level in China from 2007 to 2019. By applying a modified Slake-Based Measure (SBM) directional distance function model (MSBM), the study quantifies green economic efficiency and develops various panel models to investigate the impact of land resource misallocation on urban green economic efficiency. The findings indicate that land resource misallocation significantly impedes the enhancement of urban green economic efficiency. This is primarily achieved through the reduction in human capital investment and the weakening of technological conversion capabilities, both of which adversely affect the development of green economies in cities. Furthermore, government performance levels are shown to play a pivotal role in moderating the relationship between land resource misallocation and green economic efficiency, with regional heterogeneity evident between cities in old industrial bases and those in non-old industrial bases. These results underscore the critical importance of rational land resource allocation in improving green economic efficiency and facilitating the achievement of high-quality urban development.

Keywords: land resource misallocation; green economic efficiency; local government; functional performance; threshold effect (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2025
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