Can industrial land be forcibly acquired and stored by the government

How to promote intensive use of industrial land?

Market absence makes it difficult to rely on local governments to realize intensive use of industrial land by themselves. An improve performance appraisal system with market feedback can help promote intensive use of industrial land. The central government should implement regional differentiated land supply policies based on market signals.

Should industrial land be restricted?

External restriction should be introduced. A threshold value of per unit industrial land economic benefit and performance penalty coefficient can be helpful tools for the market to send a signal back to the central government. The closed loop of the governance structure then becomes complete and is ready to promote intensive use of industrial land.

How to promote intensive use of industrial land in China?

An improve performance appraisal system with market feedback can help promote intensive use of industrial land. The central government should implement regional differentiated land supply policies based on market signals. Extensive use of industrial land has been typical for many cities in China since the end of the previous century.

How does local government affect industrial land supply?

The intervention from local government guarantees a low-price land transfer, and the firm–government connection further causes an oversupply of industrial land.

Why do local governments transfer land to industrial purposes?

Since massive investment brought by the transfer of land to industrial purposes can not only provide a large number of employment opportunities, but also bring tax revenue, local governments have tended to attract investment by transferring industrial land at a lower price (Tao et al. 2007; Zhang et al. 2011; Wu et al. 2014 ).

Why do local governments need to requisition rural collective-owned land?

With economic development, local governments have to requisition rural collective–owned land to meet the increasing industrial land demands. In the planned economies, industrial land was granted to state-owned enterprises for free (Huang & Du, Citation 2016).