External Benefits, Common Consent And Institution Innovation Of Farmland Conversion

With the acceleration of industrialization and urbanization since the 1990s, the non-agricultural value of land is becoming obvious in our country. Enormous difference in price between agricultural use and non-agriculture use of land has still existed because of partition of land market. It is an important issue how to carry on the system innovation in land use to install land resources effectively between agricultural use and non- agricultural use, and make the reasonable allocation of land revenue between different parties. At present, the current legal approach to solve this issue is forbidding the market of land property rights, controlling the primary land market strictly and opening the secondary land market adequately. That is to say, if agriculture land is transferred into non-agriculture land use, land requisition will be the exclusive path. This institution arrangement has its rationality from the perspective economics, and it can cater to the land demand for the social-economic development. However, as the loss of the social welfare rooting from imbalance, many new social issues have been stemming.According to the theory on institutional change of new institutional economics, when external profits can't be properly interiorized, stakeholders are willing to devise the new system mechanism to change their original income allocation pattern. In order to allocate the land value added revenue reasonably and solve the issues teeming in the land requisitions, different regions are trying to taste various institution innovations. One mode of land transferring innovation through avoiding legal regulations immerged in the regions with high economic level. The institution of kunshan peasant stocks & cooperative system (PSCS) appeared under such background.In recent years, people greatly focus attention upon the institution innovation of PSCS. The land tenure rights was extended into industry field through using land and capital as stocks to construct standard workshops and houses for renting use, and then can obtain...