A spatial and temporal analysis on land incremental values coupled with land rights in China

• Local governments and developers gain major land revenue in China.
• Farmers' interests are neglected in the revenue distribution from land transfers.
• Land value increases are positively correlated to levels of economic development.
• Gains from land value increases and gaps among stakeholders rose from 2005 to 2010.
• The property relationship is pivotal in the distribution of gains from land value increase.

Land incremental value (LIV) refers to the increase in land value through processes of land acquisition, leasing, and real estate development that result in land revenue gains for stakeholders. However, the imbalanced distribution of LIV in China is causing severe disparities between key stakeholders. To effect reasonable and fair LIV distribution requires estimations, on a national scale, of proportionate LIV shares of stakeholders. This paper presents a theoretical framework linking stakeholders' land revenue and LIV based on land rights. Our analysis of the spatial patterns, temporal evolution, and distribution of LIVs in China revealed the following. In 2010, the average LIV distribution ratio for collectives/farmers, local governments, and developers was 2, 18 and 80%, respectively, of the total LIV. LIV values were higher and gaps between different types of LIVs, according to stakeholders, were wider in eastern coastal provinces compared with central and western China. While LIVs of collectives/farmers and local governments increased between 2005 and 2010, the gaps between them also widened. Our spatial analysis revealed that this trend was particularly prominent in the eastern coastal area. This paper examines the reasons for this imbalance in LIV distribution and the resultant problems. It suggests that developing a public service orientation within the government and reducing excessive land acquisitions may help to ease imbalances in LIV distribution.