Conserving the heritage in Chongqing by market forces

Abstract

PurposeThe purpose of this paper is to examine the feasibility of adopting a market‐based land use model, Transfer of Development Rights (TDR), which is very popular in America and other countries as a positive land use control mechanism for conservation, in an evolving socialist land economy, namely China.Design/methodology/approachThis paper utilizes a case study approach, supplemented by a cost‐benefit model, to estimate the feasibility of establishing a TDR model in Chongqing, China.FindingsFrom the analysis, it is found that a market‐based land use mechanism can serve to maximize the benefits of all parties and can balance the interests between development pressures and conservation needs. However, this is based on a number of conditions, including: that a well‐developed legal framework should be set up, to clearly delineate property rights; that a good and enforceable planning system should be in place; and that a mature land market mechanism should be developed that allows open market prices to be realized in the trading of development rights.Research limitations/implicationsThis case study is based on a hypothetical situation of one case. More data are needed to support the argument in the future.Practical implicationsConservation is a major concern for the local governments in China, given the recent high speed economic growth. A model that can balance development pressure, while allowing the market to compensate fully for the infringement of property rights in the process of urban regeneration, is worthy of the authority's attention in future policy formulation.Social implicationsThis paper shows that the society as a whole can strike a balance between the need for economic development and conservation of historic sites, provided some conditions can be met.Originality/valueThis paper fulfills an identified need to study the establishment of a market‐based land use model in the conservation policy of land in China.