Understanding the spatial spillover effect of land finance on China's green development: does the moderating role of industrial structure matter?

Publisher: Springer Country of Publication: Germany NLM ID: 9441769 Publication Model: Print-Electronic Cited Medium: Internet ISSN: 1614-7499 (Electronic) Linking ISSN: 09441344 NLM ISO Abbreviation: Environ Sci Pollut Res Int Subsets: MEDLINE

Publication: <2013->: Berlin : Springer
Original Publication: Landsberg, Germany : Ecomed

Carbon*; China ; Cities ; Economic Development ; Evidence Gaps

Since the 1994 China's tax-sharing reform, land finance has far-reaching influence on fiscal system and has critical implications for green development and industrial structure optimization. Previous studies have largely focused on the environmental aspect of land finance by considering carbon emissions as environmental indicator only and ignored social and economic aspects. To fill the research gaps, this study analyzed spatial and moderating effects of land finance on green development through rationalized industrial structure, quantity of advanced industrial structure, and quality of advanced industrial structure in 246 Chinese cities from 2006 to 2019. The results document that local and surrounding land finance have negative effect on China's green development. Local land finance inhibits green development in western and large cities, while surrounding land finance deteriorates in eastern and large cities. Through mediation of industrial structure optimization, land finance accelerates green development in national, eastern, and large cities. In western cities, land finance promotes green development through quantity and quality of industrial structure upgrading. In small- and medium-sized cities, quantity of industrial structure upgrading plays a positive role.
(© 2023. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)

Chen J, Wang L, Li Y (2020) Research on the impact of multi-dimensional urbanization on China’s carbon emissions under the background of COP21. J Environ Manag 273:111123. (PMID: 10.1016/j.jenvman.2020.111123)
Démurger S (2001) Infrastructure development and economic growth: an explanation for regional disparities in China? J Comp Econ 29(1):117. (PMID: 10.1006/jcec.2000.1693)
Deng HH, Yang LX, Pan XT (2020) High-speed rail and industrial upgrading in China: facts and mechanisms. J Financ Econ 46(06):34–48.
Du W, Li M (2021) The impact of land resource mismatch and land marketization on pollution emissions of industrial enterprises in China. J Environ Manag 299:113565. (PMID: 10.1016/j.jenvman.2021.113565)
Fu L-H (2010) An empirical research on industry structure and economic growth. Stat Res 27(08):79–81.
Guo W, Zhou Y (2020) Does land finance promote high quality economic development? A mediating effect perspective based on urbanization and industrial structure upgrading. South China Finance (10):28–39.
He C, Huang Z, Wang R (2014) Land use change and economic growth in urban China: a structural equation analysis. Urban Stud 51(13):2880–2898. (PMID: 10.1177/0042098013513649)
He C, Zhou Y, Huang Z (2016) Fiscal decentralization, political centralization, and land urbanization in China. Urban Geogr 37(3):436–457. (PMID: 10.1080/02723638.2015.1063242)
He Q, Du J (2022) The impact of urban land misallocation on inclusive green growth efficiency: evidence from China. Environ Sci Pollut Res 29(3):3575–3586. (PMID: 10.1007/s11356-021-15930-y)
Hou S, Song L, Wang J, Ali S (2021) How land finance affects green economic growth in Chinese cities. Land 10(8):819. (PMID: 10.3390/land10080819)
Kok N, Monkkonen P, Quigley JM (2014) Land use regulations and the value of land and housing: An intra-metropolitan analysis. J Urban Econ 81:136–148. (PMID: 10.1016/j.jue.2014.03.004)
Kunce M, Shogren JF (2007) Destructive interjurisdictional competition: firm, cap- ital and labor mobility in a model of direct emission control. Ecol Econ 60(3):543–549. (PMID: 10.1016/j.ecolecon.2005.04.024)
Lefebvre H (1991) The production of space. Blackwell Publishing, Oxford.
Li G, Gao D, Li Y (2023) Impacts of market-based environmental regulation on green total factor energy efficiency in China[J]. China World Econ 31(3):92–114. https://doi.org/10.1111/cwe.12485.
Liu X, Xu HZ, Zhang M (2022) Impact and transmission mechanism of land leasing marketization on carbon emissions: based on the mediating effect of industrial structure. China Popul Resour Environ 32(6):12–21.
Lu X, Zhang Y, Li J, Duan K (2022) Measuring the urban land use efficiency of three urban agglomerations in China under carbon emissions. Environ Sci Pollut Res 29(24):36443–36474. (PMID: 10.1007/s11356-021-18124-8)
Lu XX, Teng YS (2020) How the heterogeneity of land financial dependence affects regional economic development? Study Exp 120–129. https://doi.org/10.3969/j.issn.1002-462X.2020.07.014.
Misczynski DJ (1986) The fiscalization of land use. California Pol Choices 3:127–150.
Mo J (2018) Land financing and economic growth: evidence from Chinese counties. China Econ Rev 50:218–239. (PMID: 10.1016/j.chieco.2018.04.011)
Peterson GE (2013) Unlocking land values to finance urban infrastructure. Social Science Electronic Publishing.
Rasli AM, Qureshi MI, Isah-Chikaji A et al (2018) New toxics, race to the bottom and revised environmental Kuznets curve: the case of local and global pollutants. Renew Sust Energ Rev 81:3120–3130. (PMID: 10.1016/j.rser.2017.08.092)
Sha R, Li J, Ge T (2021) How do price distortions of fossil energy sources affect China’s green economic efficiency?. Energy 232:121017. (PMID: 10.1016/j.energy.2021.121017)
Shan Y, Guan D, Liu J et al (2017) Methodology and applications of city level CO2 emission accounts in China. J Clean Prod 161:1215–1225. (PMID: 10.1016/j.jclepro.2017.06.075)
Shu C, Xie H, Jiang J, Chen Q (2018) Is urban land development driven by economic development or fiscal revenue stimuli in China? Land Use Policy 77:107–115. (PMID: 10.1016/j.landusepol.2018.05.031)
Song M, Ma X, Shang Y, Zhao X (2020) Influences of land resource assets on economic growth and fluctuation in China. Res Policy 68:101779. (PMID: 10.1016/j.resourpol.2020.101779)
Sun J, Zhou T (2023) Urban shrinkage and eco-efficiency: the mediating effects of industry, innovation and land-use. Environ Impact Assess Rev 98:106921. (PMID: 10.1016/j.eiar.2022.106921)
Sun Q, Feng Y, Tang Y et al (2022) The relationship amid land finance and economic growth with the mediating role of housing prices in China[J]. Front Psych 13:976236.
Tang P, Shi X, Gao J, Feng S, Qu F (2019) Demystifying the key for intoxicating land finance in China: an empirical study through the lens of government expenditure. Land Use Policy 85:302–309. (PMID: 10.1016/j.landusepol.2019.04.012)
Tao R, Su F, Liu M, Cao G (2010) Land leasing and local public finance in China’s regional development: evidence from prefecture-level cities. Urban Stud 47(10):2217–2236. (PMID: 10.1177/0042098009357961)
Tian L (2015) Land use dynamics driven by rural industrialization and land finance in the peri-urban areas of China: the examples of Jiangyin and Shunde. Land Use Policy 45:117–127. (PMID: 10.1016/j.landusepol.2015.01.006)
Wang D, Ren C, Zhou T (2021a) Understanding the impact of land finance on industrial structure change in China: insights from a spatial econometric analysis. Land Use Policy 103:105323. (PMID: 10.1016/j.landusepol.2021.105323)
Wang D, Ren C, Zhou T (2021b) Understanding the impact of land finance on industrial structure change in China: insights from a spatial econometric analysis. Land Use Policy 103:105323. (PMID: 10.1016/j.landusepol.2021.105323)
Wang G, Salman M (2023) The driving influence of multidimensional urbanization on green total factor productivity in China: evidence from spatiotemporal analysis. Environ Sci Pollut Res 30(18):52026–52048. (PMID: 10.1007/s11356-023-25864-2)
Wang LO, Wu H, Hao Y (2020a) How does China’s land finance affect its carbon emissions?. Struct Chang Econ Dyn 54:267–281. (PMID: 10.1016/j.strueco.2020.05.006)
Wang LO, Wu H, Hao Y (2020b) How does China’s land finance affect its carbon emissions? Struct Change Econ Dyn 54:267–281. (PMID: 10.1016/j.strueco.2020.05.006)
Wang Q, Zeng YE, Wu BW (2016) Exploring the relationship between urbaniza- tion, energy consumption, and CO 2 emissions in different provinces of China. Renew Sust Energ Rev 54:1563–1579. (PMID: 10.1016/j.rser.2015.10.090)
Xia F, Li Y, Yan J (2014) The relationship between land finance and economic growth under the industrial structure perspective—based on dynamic panel data analysis with Sys-GMM methods. Econ Geogr 34(12):85–92.
Yang J, Li G (2014) Fiscal and spatial characteristics of metropolitan government and planning in China: understanding centralization trends in a decentralization context. Habitat Int 41:77–84. (PMID: 10.1016/j.habitatint.2013.07.001)
Yang X, Wang W, Su X et al (2023) Analysis of the influence of land finance on haze pollution: an empirical study based on 269 prefecture‐level cities in China[J]. Growth Chang 54(1):101–134.
Yue SM, Lu Y (2016) Transmission mechanism of land finance affects economic growth in China-numerical model derivation and analysis based on interprovincial panel data. Finance Trade Econ 37:47–105.
Zeng L, Wang Y, Deng Y (2022) How land transactions affect carbon emissions: evidence from China. Land 11(5):751. (PMID: 10.3390/land11050751)
Zhang J, Wu G-Y, Zhang J-P (2004) The estimation of China’ s provincial capital stock:1952 —2000. Econ Res J 10:35–44.
Zhang W, Xu H (2017) Effects of land urbanization and land finance on carbon emissions: a panel data analysis for Chinese provinces. Land Use Policy 63:493–500. (PMID: 10.1016/j.landusepol.2017.02.006)
Zhang Z (2017) The mutual effects between the fiscal relations of central and local governments and economic growth in post-reform China. Evol Inst Econ Rev 14(1):101–116. (PMID: 10.1007/s40844-017-0075-4)
Zhong S, Li X, Ma J (2022) Impacts of land finance on green land use efficiency in the Yangtze River Economic Belt: a spatial econometrics analysis[J]. Environ Sci Pollut Res 29(37):56004–56022.
Zhong T, Zhang X, Huang X, Liu F (2019) Blessing or curse? Impact of land finance on rural public infrastructure development. Land Use Policy 85:130–141. (PMID: 10.1016/j.landusepol.2019.03.036)
Zhou B, Zhou C (2018) Land finance, industrial structure and economic growth-a study based on data of 284 cities above prefecture level. Economist 5:39–49.

Keywords: China; Green total factor productivity; Industrial structure optimization; Land finance

7440-44-0 (Carbon)

Date Created: 20230810 Date Completed: 20230908 Latest Revision: 20240921

20240921

10.1007/s11356-023-29194-1

37563507