Can the government purchase and store industrial land

How does government control affect the price of industrial land?

The government’s control over industrial land contributes to the lower prices (Dong et al., 2022, Lu and Wang, 2020, Tang et al., 2020). The extent of the government’s pricing power can be assessed by examining the deviation between the supply price, calculated using Eq. (1), and the base price.

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.

Why do local governments lower land prices?

Local governments are more willing to lower land prices to ensure strong competitiveness and promote industrial development. This kind of behavior can easily cause industrial land to be sold in large quantities at a low price. Local governments’ quandary is obvious: on the one hand, excessive competition creates more land supply.

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.

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 does international land market affect industrial land prices in China?

Affected by the international land market, it is quite difficult to forcefully increase the price of industrial land in China. Local governments are more willing to lower land prices to ensure strong competitiveness and promote industrial development.