The spatiotemporal evolution, intrinsic drivers, and policy utility of attached construction obligations in the bidding and auctioning of commercial residential land use rights

Abstract

Within the context of the overarching policy framework advocating for the principle of "housing for living, not for speculation", alongside a deceleration in population growth, an accelerated demand for urban renewal, and heightened expectations for the quality of public goods, the government faces significant pressure in the provisioning of public goods. In ensuring the fundamental premise of safeguarding the welfare of the populace, it is crucial to effectively strike a balance between public goods expenditure and fiscal revenue, as well as to efficiently engage real estate development enterprises in the provision of public goods. These elements constitute pivotal considerations in implementing the strategy for allocating residential land use rights for commercial purposes through public bidding and auction. The attached construction obligations associated with the bidding and auction of residential land use rights for commercial purposes represent one of the mechanisms employed by the government to facilitate the supply of urban public goods, and also serve as a channel for the involvement of social capital in the provision of urban public goods. This thesis begins by systematically reviewing the historical development of the attached construction obligations for commercial residential land use rights under China's unique land bidding and auction system within the framework of policies and case studies. Subsequently, through the analysis of 6768 policy texts and 3656 land bidding and auction documents, this thesis investigates the temporal development and inter-city variations of the attached construction obligations for residential land use rights within the framework of commercial residential land bidding and auction systems. Furthermore, to further examine the intrinsic driving factors behind the adoption of attached construction obligations for residential land use rights by local governments in different cities, a panel regression model with two-way fixed effects was constructed. This model aimed to assess the level of development of this framework and the capacity of local governments to provide public goods. Finally, the efficiency indicators for local government public expenditure were computed utilizing the DEA method, followed by the construction of a quantitative model to empirically examine the influence of this pattern on the efficiency of local public goods provision. This thesis conducts a micro-level analysis of the spatiotemporal evolution, intrinsic drivers, and policy efficacy of the component "attached construction obligations" within the framework of bidding and auction of residential land use rights for commercial purposes. It aims to provide valuable insights and pathways for research on land finance and the supply of urban public goods. The study focuses on the evolution of these attached construction obligations over time and across different spatial scales, exploring how they have responded to changes in economic, social, and policy environments. It delves into the intrinsic drivers that shape the development and implementation of these obligations, considering factors such as market competition, land values, and the need for urban renewal and infrastructure improvement. Furthermore, the thesis assesses the policy efficacy of these attached construction obligations by analyzing their impact on land finance, urban planning, and the provision of public goods. It aims to identify whether these obligations have effectively contributed to enhancing the sustainability and efficiency of land use, promoting economic growth, and improving the quality of urban life. By providing valuable insights into the functioning and impact of these construction obligations, the thesis aims to contribute to existing research on land finance and the supply of urban public goods. It offers a practical framework for policymakers and urban planners to consider when designing and implementing similar policies in their respective cities and regions, aiming to foster more sustainable and equitable urban development.