Font Size: a A A

Study On Market Failure And Excessive Loss Of Farmland Conversion

Posted on:2009-09-30Degree:DoctorType:Dissertation
Country:ChinaCandidate:H Z XuFull Text:PDF
GTID:1119360272488238Subject:Land Resource Management
Abstract/Summary:PDF Full Text Request
Industrialization and urbanization are an inevitable ways of social development, which not only drive the reformation and development of economy, society and politics, but also result in the changes of population structure, employment structure, land supply and demand, ecological environment issues; farmland conversion is the direct effect of industrialization and urbanization. Since reformation and opening in china, on the one hand, farmland conversion provides impetus for economic development, and plays an important role in economic growth; on the other hand, a lot of negative effects appear in the process of farmland conversion, for example, much loss of arable land resources, by which results in a series of social, economic and environmental problems. Farmland conversion is an inevitable trend during the economic development process. However, as indispensable natural resource, farmland has such societal value as food and ecological security, besides economic value. Enough farmland is the guarantee a country achieves sustainable development. As a result, many countries intervene in the course of farmland conversion. Our government has also been concerning it and constituted the strictest system of cultivated land protection and land management to control it. In fact, farmland conversion still is a necessary cost for economic development in present and in the future of china, which is reasonable, because the cycle of farmland conversion is consistent with economic growth cycle. Simultaneously, there are a lot of additional costs for economic development that hiding in the course of farmland conversion: one is ubiquitous market failure in the course of land resource allocation; another is the government failure in the course of land resource allocation. The essential reasons of excessive loss that result from the market failure are fragmentary system of resource value and distorted farmland resource price, which result in ignoring the latent expense of land resource that has ecological and social value during the farmland conversion. So, this paper put forward the system of farmland soci-ecological value based on restruction of farmland resource value, and then amending the economic decision function of farmland conversion by the results of farmland resource valuation, aiming to validating the excessive loss of farmland conversion induced by market failure, and searching the countermeasures to weaken the excessive loss, providing the foundation of theory and practical for land resource reasonable allocation.In the first part of the paper, the research background, theoretical concepts and research contents, analysis framework, research methods, and sources of data used are introduced. The research on ecosystem service function, farmland conversion allocation and farmland resource valuation in china and abroad are reviewed and commented also.Then, this paper hackles the theory of resource allocation and public goods, and constructs the framework of farmland allocation of low efficiency. Subsequently, this paper proceeds with the connotation of farmland social-ecological value, and concretely come up with the social-ecological service function of farmland, also discuss the action mechanism between service function and farmland conversion, and then emphasizly analyzes the efficiency loss of farmland conversion induced by market failure from the viewpoint of market failure, loss of farmland value and farmland excessive conversion. Subsequently, this paper classified the non-market value of farmland, and concretely determines the valuation method of farmland non-market value. When accounting the non-market value of farmland, we employ the method of replacement market, shadow price for calculation, and take Jiangsu, Hubei and Gansu province as an example. Based on above, investigateing the social-ecological loss of farmland through the rate of farmland conversion and index of ecological sensitivity, and use the C-D production function to establish the model to analyze the excessive loss of farmland conversion.The conclusions are obtained as follows:(1) Farmland land not onlu has the economic production function, but also has much important social-ecological function, and with the economic development, the social-ecological service function of farmland was payed more attention. According to the theory of modern resource value and sustainable development, and refer on the research of ecosystem service, the author consider that the social-ecological system service function is the natural environmental conditions and effects that formed during the farmland ecosystem and ecological process, which provide the support for human life. These functions can also been divided into several categories, for instance, gas regulation, environment purification, water conservation, soil conservation, nutrient cycling, biodiversity maintenance, recreation, cultural etc. it just because the non-market value of farmland, present farmland conversion has negative effect on economic sustainable development.(2) Market failure result in farmland excessive loss, the reason is that the social-ecological service value cannot embody on market, so various regulation measures and means have no obvious effect. During the farmland conversion, market mechanism only has effect on economic production function; the social-ecological service value of farmland was precluded from the price system, conduce to market failure. From the formation mechanism of farmland conversion price, these service functions cannot been dealed because of either no property rights or boundary fuzzy or consumption exclusivity, and then lack of the guidance of price signal, so easily cause the excessive waste and low efficiency use. Because of the defect of traditional market system and the public attribute of social-ecological service function of farmland, make farmland protection cannot simply dependent on regulation. In order to entirely solve the low efficiency of farmland allocation, it is necessary to embody the price of social-ecological service function of farmland, and to incentive peasant to protect farmland, thus promote the role and significance of these service functions in the process of farmland conversion decision-making.(3) The non-market value of farmland is comparatively high, and market failure lead to resource loss; furthermore, the losses have certain regional difference. Take Jiangsu, Hubei and Gansu as an example, the value of non-market service function of farmland is 659800 yuan/ha, 667600 yuan/ha and 632900 yuan/ha, among of them, in jiangsu province, the ecological value is 224000 yuan/ha, accounted for 33.95%; the value of social security is 224300 yuan/ha, accounted for 33.99%; the value of social stability is 211500 yuan/ha, accounted for 32.06%. In Hubei province, the ecological value is 211200 yuan/ha, accounted for 31.64%; the value of social security is 242300 yuan/ha, accounted for 36.30%; the value of social stability is 214000 yuan/ha, accounted for 32.06%. In Gansu province, the ecological value is 189500 yuan/ha, accounted for 29.94%; the value of social security is 261100 yuan/ha, accounted for 41.26%; the value of social stability is 182300 yuan/ha, accounted for 28.80%.(4) The unique method of harmonizing the farmland protection and economic growth is reasonably to select the amount of farmland conversion. According to the theory, when the marginal income of land of agricultural and non-agricultural sector is equivalent, then the amount of farmland conversion is optimal. Combination with fact of farmland conversion in china, the pricable loss of farmland conversion is the reasonable amount that promotes the allocation of farmland conversion from the dual-difficulty to the double-win. Take Jiangsu, Hubei and Gansu as an example, because of market failure, in 1997-2004, the area of farmland excessive conversion I respectively is 47642 ha, 14810ha and 5542ha, also respectively making 31.77%, 38.21% and 44.12% of the amount of practical farmland conversion. It is obvious that resource waste that result from ignoring the social-ecological value of farmland is severe.Finally, this paper puts forward some useful policy measures for the improvement of allocation of farmland conversion and the correction of market failure, including: implementing the compensation mechanism of farmland social-ecological protection; practising "green GDP" assessment method; changing the incentive structure of local government for farmland conversion; reunderstanding of farmland value, and bring the non-market value into the compensation system of land expropriation; actively pushing the valuation of resource and innovation of public policy system.
Keywords/Search Tags:Farmland conversion, Market failure, Farmland resource value, Excessive loss, Non-market value
PDF Full Text Request
Related items