Land use (LU) policies exert a profound influence on socio-economic dynamics. However, the intricate relationship between these two aspects has yet to receive comprehensive examination, especially when focusing on specific LU types and smaller-scale geographical regions. We, therefore, elucidate the complex interplay between economic development, urbanization levels, and LU changes, drawing from extensive datasets concerning LU and economic activities in Shaanxi, China. This region holds particular significance as it represents an emerging economy with a strategic role in the national economic landscape. The LU change was assessed by two indicators, comprehensive index of land use degree (CILUD) and single land use dynamic degree (SLUDD). Three findings were yielded. First, the rapid progress in socio-economic indicators is significantly underpinned by environmentally sustainable economic development practices, thereby underscoring the potential resolution of the perennial dilemma between economic growth and environmental conservation. Second, the tension between the conversion of arable land and the process of urbanization, which stimulates regional economic growth, poses a considerable challenge to maintaining sustainable agriculture and ensuring future food security. Third, the reserved land area should not be occupied without constrains for inland regions. We consequently propose suggestions aimed at addressing these dilemmas by constructing environment-friendly economy, halting urbanization expansion by increasing LU density, halting the occupation of reserved land, and increasing cropping efficiency. Together, these strategies potentially do not only advance progress towards the Agenda for Sustainable Development Goals but also greatly boost the regional economy.
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