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Related Experiment Video

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Spatial Multiobjective Optimization of Agricultural Conservation Practices using a SWAT Model and an Evolutionary Algorithm

Spatial Multiobjective Optimization of Agricultural Conservation Practices using a SWAT Model and an Evolutionary Algorithm

Published on: December 9, 2012

An improved sequential auction with complementarity for pricing the construction land quota.

Jingyu Liu¹, Weidong Meng¹, Yuyu Li²

¹School of Economics and Business Administration, Chongqing University, Chongqing, China.

|October 29, 2020

Summary

Local governments can incentivize farmers to reclaim idle land by increasing construction land quota prices. This involves adjusting fines for delayed construction or offering premiums for unused quotas, balancing urban development with farmland protection.

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Area of Science:

Agricultural Economics
Urban Planning
Environmental Policy

Background:

A significant paradox exists between abundant idle rural homesteads and a scarcity of urban construction land.
Current pricing mechanisms for construction land quotas, based solely on land reclamation costs, fail to adequately motivate farmers.

Purpose of the Study:

To propose a simultaneous pricing strategy for construction land quotas and construction land, recognizing their complementary nature.
To design optimal pricing mechanisms for construction land quotas by adapting auction models.

Main Methods:

Improved the classical sequential auction model to incorporate complementarity between construction land quotas and construction land.
Analyzed the influence of various factors on bidding prices within the designed pricing mechanisms.

Main Results:

Bidding prices decrease with a higher number of bidders.
Bidders incur losses when acquiring a quota but failing to secure land, reducing revenue probability.
Increased fines for delayed construction lead to higher bidding prices.

Conclusions:

Local governments should increase fines for delayed construction or repurchase unused quotas at a premium to boost quota prices.
These strategies encourage farmers to reclaim idle homesteads, easing land use conflicts and promoting sustainable socio-economic development.