Urban Land Revenue and Common Prosperity: An Urban Differential Rent Perspective

Fang He, Yuxuan Si and Yixi Hu ()
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Fang He: School of Economics and Management, Tongji University, Shanghai 200092, China
Yuxuan Si: School of Economics and Management, Tongji University, Shanghai 200092, China
Yixi Hu: School of Economics and Management, Shanghai University of Electric Power, Shanghai 201306, China

Land, 2025, vol. 14, issue 8, 1-22

Abstract: Common prosperity serves as a pivotal condition for achieving sustainable development by fostering social equity, bolstering economic resilience, and promoting environmental stewardship. Differential land revenue, as a crucial form of property based on spatial resource occupation, significantly contributes to the achievement of common prosperity, though empirical evidence of its impact is limited. This study explores the potential influence of land utilization revenue disparity on common prosperity from the perspective of urban macro differential rent (UMDR). Utilizing panel data from 280 Chinese cities spanning 2007 to 2020, we discover that UMDR and common prosperity levels exhibit strikingly similar spatiotemporal evolution. Further empirical analysis shows that UMDR significantly raises urban common prosperity levels, with a 0.217 standard unit increase in common prosperity for every 1 standard unit rise in UMDR. This boost stems from enhanced urban prosperity and the sharing of development achievements, encompassing economic growth, improved public services, enhanced ecological civilization, and more equitable distribution of development gains between urban and rural areas and among individuals. Additionally, we observe that UMDR has a more pronounced effect on common prosperity in eastern cities and those with a predominant service industry. This study enhances the comprehension of the relationship between urban land revenue disparities, prosperity, and equitable sharing, presenting a new perspective for the administration to contemplate the utilization of land-based policy tools in pursuit of the common prosperity goal and ultimately achieve sustainable development.

Keywords: land management; sustainable urban development; urban macro differential rent; common prosperity; prosperity effect; sharing 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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