Optimal allocation of direct and embodied arable land associated to urban economy: Understanding the options deriving from economic globalization

Abstract

Land resources do not flow directly but can be allocated as “embodied land” in goods and services during economic globalization. The term “embodied arable land” can help link local land allocation strategies to the global and national supply chains and trade activities, and suggest new lens in optimizing arable land allocation. China is facing a serious arable land shortage, especially in municipal administrative areas. Based on the nested input-output analysis (Nested IOA), this work takes Shanghai as an example, exploring the allocation of direct and embodied arable land of an urban economy within the process of economic globalization. The amount of embodied arable land associated with Shanghai economy is 6.09 Mha, broken down into local arable land use (0.20 Mha), domestic inflows (3.20 Mha) and foreign inflows (2.69 Mha). This area supports local final demand (4.32 Mha), domestic outflows (1.24 Mha) and foreign outflows (0.53 Mha). Land-related imbalances emerge in the study, namely the economy’s demand versus the city’s size, the arable land demand versus supply, and embodied arable land inflows versus outflows. Regarding the role of the urban economy in allocation of global arable land under economic globalization, on the one hand, Shanghai has intensively involved with a large amount of embodied foreign arable land resources, and has been heavy dependent on foreign embodied arable land; On the other hand, there is still large potential for Shanghai to take the opportunity of economic globalization for an optimal allocation of direct and embodied arable land. Policy suggestions on taking the opportunity of economic globalization for an optimal allocation of direct and embodied arable land are put forward.