Urban expansion in contemporary China: What can we learn from a small town?

Rapid physical expansion of urban land use is widely observed in Chinese cities. Although there is a consensus that economic liberalization and decentralization of administrative responsibilities explain the urban changes, it is not clear whether or not actual economic and population growth is the only cause of urban expansion. By using a small town as a case study, this paper shows that urban expansion is a combined outcome of actual needs, planning preparations, profit-seeking, and more importantly, the approach used by local government to achieve economic ambitions. Findings show that local economic and demographic changes do contribute to land-use expansion, but a local development approach that uses urban expansion to improve the competitive edge of the locality plays a critical role. A pro-growth coalition consisting of top local government officials, state work-unit leaders, and developers, whose interests align for short-term gain in economic and political terms, guarantee the mobilization of resources for carrying out the rapid urban expansion, and a vision of the local economic success. These findings add in a new dimension that is not yet seen in the study of China's urban expansion.     

Rural decline or restructuring? Implications for sustainability transitions in rural China

With the increase in climate change and increasing social concerns about environmental deterioration, sustainability has become a hot topic in both natural and social research. Nowadays, sustainable cities are one of the focal points, while rural areas have been disregarded. In fact, rural areas have been suffering from environmental degradation for decades. Thus, sustainability transitions in both urban and rural areas should be given commensurate emphasis. In this paper, we provide an overview of rural evolution worldwide and attempt to explore alternative approaches for enhancing rural sustainability. As depicted in the literature, rural evolution is multifaceted. For a long time, depopulation and demographic aging have been like chronic diseases torturing rural areas. Although there were some bright spots of rural repopulation and economic restructuring, they were not mainstream of rural development. Based on the existing research, we established a conceptual framework and analyzed the rural evolution paradigm from a geographic perspective. We found that rural composition determined rural architecture, while rural architecture affected rural functioning. Changes in rural functioning formed the rural evolution trend. Since rural development was also influenced by external factors, both self-organization and governmental intervention were found to be alternative approaches to guiding rural transitions. We took the case study of Tengtou village to exemplify the sustainable pathways of a rural transition. The case study indicated that national policies were the fundamental impetus for rural transformation, while self-organization played a more important role. We hope that our study will shed new light on policy orientations and rural transitions.     

Influencing factors of farmers’ willingness to withdraw from rural homesteads: A survey in zhejiang,China

The purpose of the paper is to analyse the influencing factors on farmers’ willingness of withdrawal from rural homesteads (WRH). Methods that included field surveys, factor analyses and case studies were used for this paper. The results show that farmers have a strong willingness to own the property on which their homesteads sit. There are deviations between homestead systems and execution. It is common that the area of a homestead exceeds the lawful standard, and one peasant family owns two or more homesteads. Peasant families have many concerns about WRH, which include: reduction of employment, lack of supporting social security, high expenditure of new houses, low compensation criteria for homesteads, decline in standard of living and inconvenience in agricultural production. Among all means of compensation, peasants prefer allocated residences, and they pay more attention to public service facilities and fundamental facilities. The authors argue that implementing employment and social security policies and setting up linkage mechanisms of WRH could help to smoothly push forward WRH.     

Renewal of land-use term for urbanization in China: Sword of Damocles or Noah’s Ark?

Since early 2016, the expiration of a part of the land-use rights in China has elicited widespread public concern because of the ambiguous interpretation of relevant legal clauses. Land-finance-based urbanization is the primary fiscal source of Chinese local governments, but it has been considered unsustainable by many scholars. Numerous studies have been conducted on these two issues, but a comprehensive study that combines both issues is needed. This study attempts to analyze the relations between the two concepts from the perspective of demographic change in the following decades. It proposes a compensatory mechanism based on land-use term and property tax to deal with the renewal of land-use term and the unsustainability caused by land finance. Results provide an alternative approach for the local government to realize sustainable urbanization in the future.     

How does outward foreign direct investment contribute to economic development in less advanced home countries?

In view of the rapid increase of outward foreign direct investment (OFDI) from emerging economies in recent years, this study examines how OFDI supports economic development in the world’s less advanced home countries. Drawing on theories of FDI, available literature of relevance and some recent evidence from emerging economies, this study finds that the objective of multinational enterprises to pursue assets and advantages abroad through OFDI can yield financial, intangible capability and tangible capacity returns. In the right circumstances, these returns generate important macroeconomic gains, mitigate some of the typical problems of economic development and provide broader benefits to societies. Despite some limitations, OFDI complements, sometimes in distinct ways, the development benefits many countries already realise through trade, migration and inward FDI. Emerging economies are best placed to benefit from the returns generated by OFDI.     

An empirical analysis of the factors influencing farmer demand for forest insurance: Based on surveys from Lin’an County in Zhejiang Province of China

The lack of effective farmer demand is a major factor that restricts the development of China's forest insurance. To solve this problem, this study uses a Logit model to conduct an empirical analysis of relevant factors in the farmers’ demand for forest insurance, based on field survey data of Lin’an County, Zhejiang Province. The results show that the farmers’ understanding of forest insurance, the proportion of forestry revenues in the total household income, forest size, forest disaster frequency, forest insurance liability, insurance amount setup, and the farmers’ satisfaction regarding the premium subsidy policy, are the main factors that affect the farmers’ demand for forest insurance. Therefore, we propose to expand forest insurance promotion, raise the farmers’ income, rationally design insurance products, and optimize the forest premium subsidy policy to enhance the farmers’ willingness to participate in forest insurance.     

Landowner response to policies regulating land improvements in Finland: Lease or search for other options?

Land improvements with long pay-back periods are often delayed on leased agricultural land. The delay in improvements has been found to result in land degradation, decreased land productivity and environmental problems. An important question is thus how landowners would respond to regulations and mandates concerning land improvements. Based on a Finnish landowner survey, we analysed landowner choices under certain land improvement regulations, using the currently dominant choice of leasing land for agricultural use as the benchmark. The results indicated that land leasing will continue to increase in the future, but if the landowner mandate to co-finance costly land improvements is increased, landowners are predicted to respond significantly to these mandates and search for other land management options. Three heterogeneous landowner groups were identified based on their land use choices. Current leasers and amenity owners, in particular, were sensitive to land improvement mandates, and would avoid compulsory investment expenses by selling or afforesting their land.     

Balancing productivity and trade objectives in a competing environment: should India commercialize GM rice with or without China?

India is considering approving genetically modified (GM) rice, but it fears losing rice exports to sensitive countries with import regulations on GM food, and may wait for China to lead the way. Using a multiregion, computable general equilibrium (CGE) model, we simulate the economic effects of introducing GM rice in India with or without China in the presence of labeling and import approval regulations of GM food in GM sensitive importing countries. We find that the welfare gains with GM rice in India would largely exceed any potential export loss, and that the segregation of non-GM rice could help reduce these minor losses. We also find no significant first mover advantage for India or China on GM rice. The opportunity cost of segregation of non-GM rice is much larger for sensitive importers than for India, which suggests that these importers would have the incentive to pay for the cost of segregation.     

Why Do Some Bt-Cotton Farmers in China Continue to Use High Levels of Pesticides?

China was the first developing country to introduce Bt cotton on a large scale. This paper provides an indepth economic analysis of Bt cotton production by small-scale farmers in China. Data were collected in 2002 in Linqing County, in Shandong Province and comprised a season-long cotton production monitoring with 150 farmers and complementary household interviews. For quality assessment, the Bt toxin concentration of the various Bt varieties used by the farmers was determined for each plot. All farmers were growing insect resistant Bt cotton varieties. Yet, they sprayed high amounts of chemical insecticides, out of which 40% were extremely or highly hazardous. The paper reviews methodological issues inherent to impact assessment of crop biotechnology and identifies market and institutional failure as possible reasons for continued high pesticide use. Using the damage function methodology the coefficients for both damage control inputs, i.e., Bt varieties (measured as toxin concentration), and insecticide quantity were not significantly different from zero. Results show that absence of enabling institutions and lack of farmer knowledge can considerably limit the benefits of Bt cotton for small-scale farmers. The paper points out the importance to include the institutional conditions in the evaluation of agricultural biotechnology in developing countries.     

Do land renting-in and its marketization increase labor input in agriculture? Evidence from rural China

There exist problems of land abandonment and low-efficiency land use when China is undergoing active rural-urban migration. Whether increasing land scale can attract more labor engaged in land use is important to increase land-use efficiency and relieve labor shortage in agriculture. This paper uses data from the 2015 China Household Finance Survey to assess the relationship between land renting-in and labor input in agriculture. The results show that land renting-in increases labor input in agriculture. With higher land rents and profit motives, more labor in lessees’ households will be engaged in agriculture. Further analysis indicates that there is no difference in labor input in agriculture between lessees transacting with acquaintances and those transacting with non-acquaintances for the increasing marketization of land rentals between acquaintances in today’s China. Our analysis implies that developing land rental markets and promoting the marketization of land rentals are important approaches to land use sustainability and relieving labor shortage in agriculture, which has great policy implications for countries with rapid rural-urban migration and abandoned arable land.     

Does carbon farming provide a cost‐effective option to mitigate GHG emissions? Evidence from China

In this study, we apply a whole farm bioeconomic analysis to explore the changes in land use, farm practices and on‐farm greenhouse gas (GHG) emission under varying levels of agricultural greenhouse gas abatement incentives in the form of a carbon tax for a semi‐arid crop‐livestock farming system in China's Loess Plateau. Our results show that the optimised agricultural enterprises move towards being cropping‐dominated reducing on‐farm emission since livestock perform is the major source of emission. Farmers employ less oats‐based and rapeseed‐based rotations but more dry pea‐based rotations in the optimal enterprise mix. A substantial reduction in on‐farm greenhouse gas emission can be achieved at low cost with a small increase in carbon incentives. Our estimates indicate that crop‐livestock farmers in China's Loess Plateau may reduce their on‐farm GHG emission between 16.6 and 33 per cent with marginal abatement costs <￥100/t CO₂e and ￥150/t CO₂e in 2015 Chinese Yuan. The analysis implies that reducing greenhouse gas emission in China's semi‐arid crop‐livestock agriculture is potentially a low‐cost option.     

Agents or stewards in community forestry enterprises? Lessons from the Mayan Biosphere Reserve,Guatemala

Community forestry enterprises are increasing participation in forestry activity and have become a favoured approach for reaching goals of conservation, poverty reduction and community development. Much has been written about the importance of supportive policy frameworks, technical assistance, the broader market in which these enterprises operate and the need for more significant control by communities over forests and their benefits through secure resource rights as key points of action. However, there is still a considerable knowledge gap in terms of understanding their organizational behaviour and how it affects the accomplishment of their goals. This paper takes a first step in filling this gap and analyses managerial behaviour in CFEs through the use of theories on principal–agent relationships. Data collected from CFEs in the Mayan Biosphere Reserve in Petén, Guatemala reveal important insights about managerial behaviour in these firms and how embeddedness of the CFE within the wider community plays a major role in managerial decision-making. Several policy implications are derived from these findings.     

Are maize marketers averse to quality loss in supplies? A case study from Ghana

To ensure sustainable post‐harvest loss reduction, markets that are averse to quality loss and provide incentives for farmers to supply high quality produce are crucial. Such markets will be averse to quality loss, offering distinct prices and substantial rewards to farmers for the supply of quality produce. Farmers in sub‐Saharan Africa (SSA), where informal markets exist, have often assessed the rewards for the supply of quality produce as inadequate. Hence, this study investigates if intermediary buyers are actually indifferent to quality loss in supplies based on two scenarios—the informal market scenario and a hypothesized grade scenario. The analysis builds on survey data from marketers in two informal maize markets in Ghana. For the hypothesized grade scenario, random effect regression was used to examine the influence of marketer‐specific characteristics on premiums offered to farmers over different quality levels. The findings suggest that although informal markets seem not to adequately value loss reduction, investing in institutional infrastructures, such as grades and standards can change this. Furthermore, interaction among marketers and association participation positively influences the value marketers place on quality loss reduction. The result highlights the importance of standard grading systems and collaborating with market groups in minimizing quality loss.     

How to achieve fairness in payments for ecosystem services? Insights from agrobiodiversity conservation auctions

This paper provides insights into the multiple dimensions of fairness in payments for ecosystem services (PES) using the results of pilot agrobiodiversity conservation auctions. In two sites in the Bolivian and Peruvian Andes farming groups bid for payments for the conservation of traditional crop varieties. We assess different payment rules relating to how to allocate payments among groups subject to a fixed conservation budget. The discriminatory, uniform and conditional payment rules tested in these case studies incorporate alternative principles of fairness, while resulting in varying conservation and distributional outcomes. The latter are measured in terms of the distributional equality of payments among farmers and groups, and the distributional effects of payments on different types of groups. Findings indicate that conservation and distributional outcomes are highly sensitive to the payment rule chosen and vary across study sites. There may be contexts where cost-effectiveness does not need to be traded-off against fairness. Yet given the number of competing fairness considerations, achieving PES outcomes that are perceived as fair is very challenging.     

Does extensification lead to enhanced provision of ecosystems services from soils in UK agriculture?

Extensification is offered as a management strategy to reduce the perceived negative effects of intensive agricultural management, e.g. nutrient loss through leaching, emissions of the greenhouse gas N₂O, loss of soil carbon through carbon dioxide emissions, increased nutrient, carbon and sediment loading to surface water, and reduced biodiversity. As part of managed extensification implemented under the European Union's Common Agricultural Policy intensively managed land use types (arable and grassland) are taken out of production for either 5, 7 or 10 years in the UK. The ultimate objective is to establish species-rich grassland (SRG) to which limited or no fertiliser is applied, which attracts subsidy payments under the European Agricultural Fund for Rural Development. There is little scientific evidence for the anticipated environmental benefits of these newly created SRGs. The legacy of intensive management on soils is likely to limit ecosystem service (ES) provision from former intensively managed sites for many decades following extensification and this commentary addresses this issue. Clearly, programmes of long-term experimental research are needed to quantify the environmental and economic benefits of current extensification schemes in UK agriculture in order to determine whether the benefits for ES delivered by soils out-weigh the costs in terms of loss of production.