Towards Equitable Compensation: Unraveling China’s Regional Comprehensive Land Price System from Legal Connotation to Practical Implementation

Xialin Liao (), Xin Zhao, Sina Zhou and Ying Wang ()
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Xialin Liao: School of Public Administration, China University of Geosciences, Wuhan 430074, China
Xin Zhao: School of Public Administration, China University of Geosciences, Wuhan 430074, China
Sina Zhou: School of Public Administration, China University of Geosciences, Wuhan 430074, China
Ying Wang: School of Public Administration, China University of Geosciences, Wuhan 430074, China

Sustainability, 2024, vol. 16, issue 16, 1-14

Abstract: The Regional Comprehensive Land Price System (RCLPS) in China serves as the compensation standard for land expropriation, as established by the new Land Management Law in 2019. Its primary objectives include safeguarding the legitimate rights and interests of expropriated landowners and promoting social fairness and justice—critical components for achieving Sustainable Development Goal 10. Despite its significance, the existing literature lacks a comprehensive exploration of the RCLPS’s legal connotation and implementation challenges. This study first analyzes the research background and legal connotation of China’s RCLPS. It provides a comprehensive compensation standard for land expropriation, aiming to ensure consistent compensation levels within the same “expropriated districts”. Then, an empirical study examines the practical implementation of the RCLPS in Wuhan City, China. Through a comparative analysis of the 2020 Regional Comprehensive Land Price (RCLP) and state-owned land transfer fees in Wuhan, several deficiencies in the city’s RCLPS are identified. First, the distribution of land value-added benefits lacks reasonableness. Second, the district-level delineation of “expropriated districts” inadequately captures variations in land value. From a sustainable development perspective, specific countermeasures can be proposed, including re-evaluating the allocation of land value-added benefits and incorporating them into the RCLP assessment. Additionally, enhancing the precision in delineating “expropriated districts” within the administrative region is necessary. This study provides valuable guidance for achieving equitable compensation in land expropriation and improving the RCLPS.

Keywords: regional comprehensive land price system (RCLPS); land rent; land value-added benefits; state-owned land transfer fee; Wuhan city; China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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