Abstract
Background: The distribution of farmers’ increment income is the key to the transfer of land use rights. This research aims to detect the optimal payment mode for the distribution of land increment income obtained by farmers in land rights transfer. Methods: The research relied on case analysis, mathematical analysis, and numerical simulation. Results: According to China’s existing payment modes for the increment income of rural collectively owned operating construction land (RCOCL), we summarized these payment modes into three: namely, lump-sum currency payment, a mixed payment of pension and lump-sum currency, and a mixed payment of dividend and lump-sum currency. If the land transfer price of RCOCL is lower than a specific value, the lump-sum currency payment will be optimal for farmers. Suppose the land transfer price is higher than this value. If the enterprise’s profit margin is higher than the pension rate of return, the mixed payment of dividend and lump-sum currency will be optimal; if not, the mixed payment of pension and lump-sum currency will be optimal. Conclusions: Differences in regions, enterprise attributes, and farmers’ characteristics will make the optimal proportion of pension or stock capital in land increment income (OPPSC) different. Generally, OPPSC is often between 40% and 60%.
Highlights
China’s long-term urban-oriented development strategy has led to the contradiction between land division, man–land separation, urban–rural division, and the unsatisfactory development of urban–rural integration
This research aims to detect the optimal payment mode for the land increment income obtained by farmers in the process of land rights transfer, which provides a reference for the formulation of payment plans for land rights transfer or ecosystem services programs
According to the analysis described above, we conclude that the optimal payment mode is as follows: When the transfer price of rural collectively owned operating construction land (RCOCL) is below a specific value, which is [b(1 + et+1)W]/
Summary
China’s long-term urban-oriented development strategy has led to the contradiction between land division, man–land separation, urban–rural division, and the unsatisfactory development of urban–rural integration. Part of the land increment income from transactions is paid to the farmers as compensation for land acquisition, and most of it is used as fiscal revenue used for urban construction by the local government [5]. The distribution of farmers’ increment income is the key to the transfer of land use rights. This research aims to detect the optimal payment mode for the distribution of land increment income obtained by farmers in land rights transfer. Results: According to China’s existing payment modes for the increment income of rural collectively owned operating construction land (RCOCL), we summarized these payment modes into three: namely, lump-sum currency payment, a mixed payment of pension and lump-sum currency, and a mixed payment of dividend and lump-sum currency.
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