Industrial Land Redevelopment Research Articles

Pro- and Contra-Coalition: Governing the Rise and Fall of Creative Industrial Parks in China

A great number of creative industrial parks (CIPs) have emerged in the past two decades in China as a critical and popular approach to the adaptive reuse of abandoned industrial land in cities. However, a few vibrant CIPs have been closed in the past few years, and the sites are set to be demolished and redeveloped in a property-led manner, suggesting the fragility of CIPs as a land reuse approach. This article aims to elaborate on the institutional rationale behind such a phenomenon. Cases in Shanghai and Guangzhou are examined and presented. The key arguments include: (a) in the industrial land redevelopment process, public and private actors flexibly establish pro-coalitions and contra-coalitions to foster and close CIPs, with strategies to overcome institutional obstacles and to implement land redevelopment-pursued regulatory plans, respectively; (b) key actors forming the two coalitions overlap, such as the local government and the state-owned enterprise land occupiers, and their positions shift subject to specific circumstances; and (c) the finding of the two coalitions echoes the existing argument that there are forces beyond the growth machine driving China’s urban development and provides further insight into the explicit framework of the dual forces underneath.

Evolution Process of Urban Industrial Land Redevelopment in China: A Perspective of Original Land Users

The crucial role of urban industrial land redevelopment in sustainable urban renewal has garnered widespread attention. While some scholars have explored the interest game among stakeholders in industrial land redevelopment, they primarily focus on the government-led model. Moreover, there remains a research gap concerning the impact of government intervention on the redevelopment of industrial land. This article utilizes evolutionary game theory to investigate the interest game between local governments and original land users in the model of urban industrial land redevelopment dominated by original land users. We establish evolutionary game models considering incentives and the combination of incentives and regulations, explore the interest balance strategy, and examine the impact of positive incentives and mandatory regulations on industrial land redevelopment. Furthermore, we employ a numerical simulation to unveil the impact of initial strategies and parameter adjustments on game strategy. The research results are as follows: (1) Under the original land user-led redevelopment model, only two evolutionary stability strategies exist: either the original land users implement industrial land redevelopment with positive responses from local governments, or neither party advances the process. (2) Government intervention is pivotal in facilitating the redevelopment of inefficient industrial land as economic subsidies and punitive measures motivate more participants to adopt proactive strategies. (3) The increase in government support positively correlates with the likelihood of industrial land redevelopment implementation by original land users. (4) The interests and costs of original land users emerge as crucial parameters influencing strategic decisions. This study enriches the understanding of the interests of core participants in industrial land redevelopment and provides valuable insights for sustainable urban renewal.

Vertical expansion in the making: Planning against deindustrialization by promoting “Industry’s Going Upstairs” in Shenzhen

In recent years, industrial metropolises in China have experienced a surge in proactive planning initiatives aimed at developing high-rise industrial structures, commonly known as “Industry’s Going Upstairs (IGU).” This study argues that the IGU represents a distinct form of urban verticality that is neither motivated by capitalist speculation nor sustainability prompts but rather by local states’ intervention to ensure economic resilience and enhance innovation capabilities. This study presents the case of Shenzhen to demonstrate how the adoption of the IGU initiative is catalyzed by concerns over manufacturing sectors’ out-migration and the effects of volatile US-China relations on the city’s competitiveness. In light of these circumstances, Shenzhen has embraced the ambitious IGU initiative as a practical approach to reverse the trend of deindustrialization while sidestepping the lengthy process of industrial land redevelopment. The paper concludes by emphasizing the need for a comprehensive understanding of political-economic factors that drive urban vertical expansion and their potential consequences.

Spatial restructuring and the logic of industrial land redevelopment in urban China: IV. A case study of jointly redevelopment by multi-actors

Within the inventory era, urban shrinkage characterized by economic decline and space decay has been widely witnessed in China. The modes and trajectories of urban redevelopment have thus become areas of major concern for both policymakers and scholars. Taking the multi-actor participation nature of redevelopment, this paper stemming from the game-theoretical approach demonstrates in empirical terms on two major fronts. First, the redevelopment of industrial land without the transfer of land use right is shown to be deadlocked by the incapacitation of the original land-user and unlocked with the participation of the new developer. Second, the preference of the original land-user to maximize its interests by operating by itself rather than continue to cooperate with the new developer is observed in the post-redevelopment stage. Therein, the entrepreneurial local government acts only as a “mediator” between the two market entities and tends not to directly intervene in their cooperation. Thus that, it is the reasonable distribution of potential benefits or the pricing of different rights in the land property right bundle rather than their definition that matters more for land redevelopment. Because the delineation of land property rights has never been a problem in a mature land market, particularly for stock industrial land.

Ambiguous property rights as a double-edged sword: A case study of industrial land redevelopment in Shanghai, China

In the global discourse of ambiguous property rights, the prevailing argument is that ambiguous property rights are blamed for myriad land-related problems in the Global South. In the absence of secure land property rights, China provides new insights into this prevailing argument; however, whether China's ambiguous land property rights have led to land-related problems is still under heated debate. Through an empirical investigation of the Shanghai No.10 Iron and Steel Works redevelopment, this paper explains the ambiguity of property rights over state-owned industrial land in relation to the ambiguous property rights approach and evaluates its impacts on industrial land redevelopment. The case study analyzes the major stakeholders and their de jure rights and de facto rights, reveals the land rents redistribution, and examines how ambiguous property rights fundamentally impacted the spatial outcomes of the No.10 Steelworks site. With the evidence of the two-sided impacts caused by ambiguous property rights in China, this paper criticizes the monolithic understanding of ambiguous property rights in the global discourse and argues that the introduction of ambiguous property rights has been a double-edged sword for land redevelopment in non-Western countries. New thinking concerning alternatives to land institutions is finally discussed within and beyond China.

Decoding the decision-making in the new wave of urban redevelopment in China: A case study of a bottom-up industrial land redevelopment in Shenzhen

Since 2008, the urban redevelopment in China has entered a new era mainly characterised by the new redevelopment model proposed and practised in Guangdong province. In the new wave of urban redevelopment towards a more inclusive type of governance, the roles of various agents or stakeholders in the decision-making processes have changed correspondingly. Building upon Healey and Barrett’s structure and agency approach in the land and property development process, this paper develops an analytical framework specifically to explore the decision-making processes and mechanisms in this urban redevelopment experiment conducted in China. The empirical basis of this paper is a pioneer city in urban redevelopment within Guangdong province, Shenzhen. Through exploring the redevelopment trajectory of a local collective-owned factory, the roles played by different stakeholders at each stage of the redevelopment process are clarified. The conflicts and compromises between land owners and the developer on the distribution proportion of potential profits, and between the district government and the developer on the inclusion and provision of public facilities, have revealed the key decision-making mechanisms of collective-owned industrial land redevelopment in China, which offer valuable insights and experiences for industrial land redevelopment in other cities.

Stakeholder Analysis and Social Network Analysis in the Decision-Making of Industrial Land Redevelopment in China: The Case of Shanghai.

Currently, many large Chinese cities have entered the postindustrial era, leaving a large amount of vacant, inefficiently utilized industrial land and buildings in the inner cities. Industrial land redevelopment (ILR) can benefit cities in multiple ways, such as by increasing urban public space, improving the quality of life of citizens, and improving the environment, and is considered an effective approach to enhance people’s wellbeing. However, large-scale ILR projects often raise a series of social issues in practice, such as injustice and inequality. To address complex urban issues, ILR requires multifaceted, coordinated, and comprehensive strategies involving multitudinous stakeholders. A profound understanding of diverse stakeholders in the decision-making of ILR is a vital step in enhancing the sustainability of ILR. The aim of this paper is to use Shanghai as a case study to understand the diverse stakeholders and their participation during the decision-making of ILR in China. Interviews and questionnaires were used to collect data. Stakeholder analysis (SA) and social network analysis (SNA) were used as complementary research methodologies in this paper. First, stakeholders who participated in the decision-making of ILR were identified. Then, the characteristics of various stakeholders, including power, interests, and knowledge, were analyzed. Following this, the interactive relationships among stakeholders were explored, and their network structure was examined. Finally, policy recommendations were presented regarding stakeholder participation problems in the decision-making of ILR in China.

Transformation of Industrial Land in Urban Renewal in Shenzhen, China

The redevelopment and transformation of industrial land has become an important part of urban renewal in China. This study adopts a spatial perspective to investigate the transformation of industrial land in Shenzhen based on a set of reliable data of all urban redevelopment projects of industrial land from 2010 to 2018. Research shows that the development of the real estate market, local government’s strategic demand for upgrading industrial structure, and the policy objective of improving land use intensity are important factors that affect the industrial land transformation. Industrial land has decreased significantly in urban renewal. About 881.79 ha (76.82%) of industrial land has been transformed into commercial, residential, and new industrial spaces. The planned industrial space is mainly located in the central and western regions, while the new commercial and residential spaces are mainly located outside the Special Economic Zone (SEZ). Redevelopment of industrial land has also transferred a certain scale of land to local governments for providing public facilities with an uneven spatial distribution between SEZ and non-SEZ. Therefore, industrial land transformation has brought significant effects on the urban spatial structure of this city. The study concludes with an evaluation of current industrial land redevelopment activities and provides suggestions for sustainable land development in the future.

Spatial restructuring and the logic of industrial land redevelopment in urban China: III. A case study of the redevelopment of a central state-owned enterprise in Nanjing

Drawing upon the game-theoretical concepts for urban land redevelopment in China, this paper provides further substantiation on, and demonstrates, two major fronts in empirical terms. First, the redevelopment trajectory of industrial land that had been used by a central state-owned enterprise (SOE) was identified and was shown as deadlocked by disputes on the pathway to cooperation between the local government and the original land user. Second, the shifts in the bargains between the pair from the “prisoners’ dilemma” to “pigs’ payoffs,” and then to “neo-pigs’ payoffs” were analyzed, and we showed how industrial land can be redeveloped. Finally, we argued that disputes between the entrepreneuralization of local governments and the politicization of SOEs constitute a potent system of explanatory coordinates that effectively reveal the hidden logic of industrial land redevelopment in urban China. Different from the redevelopment of local SOEs, communications between the user and owner of urban land, as well as the tradeoff of benefits, are key factors in breaking the aforementioned deadlock.

Exploring the Diverse Expectations of Stakeholders in Industrial Land Redevelopment Projects in China: The Case of Shanghai

In China, while large-scale industrial land redevelopment has played a significant role in promoting economic growth, it has also triggered a series of unsustainable problems. To date, few studies have explored the expectations of stakeholders in industrial redevelopment projects in China. Gaining an in-depth understanding of the diverse expectations among core stakeholders is an essential step towards realizing social sustainability. This study aims to analyze these diverse expectations in industrial land redevelopment projects. For this purpose, 19 factors were identified and compared across the following core stakeholders: local governments, consulting experts, the general public, and original land users of state-led redevelopment and land user-led redevelopment projects, using questionnaires and interviews conducted in Shanghai, China. The findings show there to be tremendous differences between the expectations of different stakeholder groups in terms of economic, social and environmental aspects. Major differences were also found between the expectations of original land users across different project types. Moreover, the negative externalities, the balance between industrial and residential space, the diverse needs of original land users in different project types, and the barriers to stakeholders’ participation, in industrial land redevelopment in China were discussed. The findings of the current paper are conducive to optimizing stakeholder participation in industrial land redevelopment so as to enhance social sustainability.

Social sustainability of urban regeneration led by industrial land redevelopment in Taiwan

ABSTRACTAbandoned industrial sites, usually contaminated by hazardous substances, create social injustice in the surrounding communities. Redevelopment of industrial land has brought prospects of sustainable development to the communities that live in and around them. This research is to identify the critical factors facilitating urban regeneration and particularly social sustainability in Kaohsiung, an industrial city of Taiwan which experienced deindustrialization in recent decades, resulting in several abandoned industrial sites and decay of the adjacent urban communities. Two different industrial land redevelopment projects were examined; (1) Jhongdou Wetland Park, which focuses on environmental sustainability, and (2) Pier-2 Art Centre, which focuses on economic sustainability. Measured by the social sustainability indicators developed by the Oxford Institute for Sustainable Development and through findings from a questionnaire survey of community members, this study found that the redevelopment project of the Pier-2 Art Centre has a higher level of social sustainability than the Jhongdou Wetland Park, performing better in six out of nine themes. Critical dimensions resulting in the better performance in social sustainability of the Pier-2 Art Centre included rental affordability, heritage conservation, community image, cultural activity, community association, public space, local organization and higher accessibility to facility.

Spatial restructuring and the logic of industrial land redevelopment in urban China: II. A case study of the redevelopment of a local state-owned enterprise in Nanjing

Stemming from the theoretical concepts worked out in detail in Paper I, this paper demonstrated in empirical terms on two major fronts. First, the redevelopment trajectory of industrial land in Nanjing was identified and was shown to consist of the dilemma of firm migration and the puzzle of space transformation. Second, the multiple rounds of bargaining between original land user and land owner were analyzed, and it was shown in particular how the industrial land of local state-owned enterprise (SOE) can be redeveloped under the control or intervene of urban government. Finally, we argued that the disputes between original land user and land owner on the sharing of redevelopment cost and the distribution of potential benefits constituted a potent system of explanatory coordinates that effectively reveals the hidden logic of industrial land redevelopment in urban China. And the carrot-and-stick approach employed by local authorities is the key to breaking that deadlock.

Institutional uncertainty, fragmented urbanization and spatial lock-in of the peri-urban area of China: A case of industrial land redevelopment in Panyu

Institutional arrangements can exert significant impact on land use and the spatial pattern for a region. Since the reform opening, the Pearl River Delta (PRD) area of China has witnessed an explosive amount of bottom-up rural industrialization. This situation has given rise to a fragmented urbanized landscape in peri-urban areas. In 2009 the Guangdong government initiated a comprehensive urban and rural redevelopment plan known as the Three-Renewal Policy. This paper begins with an analysis of the double-track land system and their impact on fragmented urbanization in peri-urban areas. Taking a typical peri-urban area such as the Panyu district of Guangzhou as a case study, this paper demonstrates the industrial land redevelopment practice created by the Three-Renewal Policy. The paper argues that the existing fragmented land use pattern in Panyu has been somewhat locked in, and the redevelopment of rural industrial land has been difficult due to historical institutional uncertainty and path dependency. The uncertainty caused by volatile redevelopment policies, absence of trust between local government and villagers, long-time reliance of villages on land leasing income, and high transaction costs to achieve consensus among villages serve as key barriers to redevelopment. These problems have led to a prolonged redevelopment process and low participation of villages. The results suggest that further institutional change and more collaboration among various parties are necessary to overcome the current barriers of spatial lock-in to push forward the redevelopment of collective industrial land.

Spatial restructuring and the logic of industrial land redevelopment in urban China: I. Theoretical considerations

We harness the game-theoretic approach to propose a new conceptual framework for industrial land redevelopment research. Stemming from Harvey's notion of “urbanization of capital” and Foucault's study on “power relations”, we analyze the driver and regulator of urban spatial restructuring. We contend that the redevelopment of industrial land should be re-conceptualized as the competition for land rent gap or land rent surplus. Land redevelopment in urban China could be theoretically interpreted as multiple games between the original land-user and local government or the alliance between local government and new developers. Different equilibriums of games lead to various models/types of redevelopment.

Environmental Liability and Redevelopment of Old Industrial Land

Many communities are concerned about the reuse of potentially contaminated land (brownfields) and believe that environmental liability is a hindrance to redevelopment. However, with land price adjustments, liability might not impede the reuse of this land. This article studies state liability rules-specifically, strict liability and joint and several liability-that affect the level and distribution of expected costs of private cleanup. It explores the effects of this variation on industrial land prices and vacancy rates and on reported brownfields in a panel of cities across the United States. In the estimated equations, joint and several liability reduces land prices and increases vacancy rates in central cities. The results suggest that liability is at least partly capitalized but does still deter redevelopment.

Urban Industrial Land Redevelopment and Contamination Risk

This study examines the role of contamination risk on urban industrial redevelopment in the City of Chicago. The theoretical framework is the myopic optimal redevelopment rule which states that the redevelopment of an urban parcel will occur when the parcel's value through conversion to a new use, net of construction costs, exceeds the value of the same parcel continuing in its current use. Contamination liability is modeled as a land demolition cost that is capitalized into bid value. Assuming that the magnitude of this land demolition cost is a function of the a priori probability of contamination, the effects of contamination risk on land value and on the probability of redevelopment are estimated.

A Theory of Price Control

PRICE or rent control is but one of many forms of legislative action which interfere with private contracting in the market place. To delimit the scope of my analysis, I shall use the term "price control" to refer only to any set of regulations which satisfies the following three conditions. First, the control must fix the price (or income)' terms of private contracts; this categorically excludes any laws which regulate the distribution of income among the contracting parties on a share or percentage basis.2 Second, the control must involve no appropriation of proceeds to or from the government; taxation and subsidization are thus excluded. Finally, the fixing of price must not be associated with direct government sales, purchases, or manipulation of resources so as to maintain the regulated price;3 by this stipulation, price "support" is also excluded. Even on such terms, legal regulations to control price are still many and varied. To evaluate our understanding of the class of phenomena which we seek to explain it is essential that we discover implications refutable by facts. By this criterion the available body of economic theory pertaining to price control is deficient indeed: the massive literature on the subject offers few such implications.4 An alternative approach to analyzing the observable effects of price control is presented here.