Land-Use Regulation and Economic Development: Evidence from the Farmland Red Line Policy in China

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Abstract/Contents

Abstract: This paper studies the distortionary effects of land-use regulations that preserve farmland from urban sprawl. I exploit a major policy restricting farm-to-urban land conversion in China - the Farmland Red Line Policy - to provide causal evidence on the negative impact of land-use regulation on local development, measured by GDP and population growth. To understand the aggregate impact of the policy, I develop a quantitative spatial equilibrium model that features endogenous land-use decisions. The calibrated model reveals that the welfare of workers would have been 6% higher in 2010 if the policy had not been implemented.

Type of resource	text
Date created	September 9, 2021

DOI	https://doi.org/10.25740/sc767jg8470
Location	https://purl.stanford.edu/sc767jg8470

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License: This work is licensed under a Creative Commons Attribution 4.0 International license (CC BY).

Preferred citation: Yu, Y. (2022). Land-Use Regulation and Economic Development: Evidence from the Farmland Red Line Policy in China. Stanford Digital Repository. Available at https://purl.stanford.edu/sc767jg8470

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