Review of Shanghais Green City Policy A Discussion Based on Land Price Theory

Abstract

This paper studies the impact of green city policy on land price change in Shanghai. We find that the displacement of industry zone will cause the land supply surplus in short run in moving out area, which will lead to the decrease of land price. In moving-in area, the price in long run and short run is completely opposite with moving out area. Land price theory is reviewed regarding its explanatory power in understanding the relation between change in price of land and external factors. The theory is utilized in reviewing of green city policy in Shanghai and its influence over the change in land price concerning industrial zones. While the green city policy is expected to have a number of positive effects on the city, including improving air quality, reducing greenhouse gas emissions, and creating a more livable environment, it is found to have some negative effects, such as increasing the cost of living and reducing the amount of available land.