Mengmeng XU，Zhongxiang YU*，Xilian YANG

1.College of Economics and Management/Institute of Land and Resources，Anhui Agricultural University，Hefei230036，China；2.Reserve and Development Center of Land and Resources of Anhui Province，Hefei230022，China

1 Introduction

Since 2000，China's urbanization process has accelerated and the urbanization rate has increased by 1.35 percentage points per year.At the end of 2014，China's urbanization rate reached 54.77%，and the permanent urban population was 749160000.Land is the carrier of urban development，and the urbanization process will inevitably lead to a loss of arable land resources，thereby exacerbating the conflict between＂food＂and＂building＂.Anhui Province is an important province in the central region，and it has unique location and transportation advantages.It plays a demonstrating and leading role in its development model and effectiveness for the central region.However，the population and resource allocation is uneven in Anhui，which has severely restricted the new urbanization.It is necessary to use institutional design to solve this problem.The northern part of Anhui has rich arable land resources，the agricultural population base is too large，and the rural construction land area is large，but there is a shortage of water resources and the population carrying capacity is too large；the central part of Anhui and the areas along the Yangtze River face excellent development opportunity of Yangtze River Economic Belt and Hefei Economic Circle，but the arable land protection pressure is large，and the construction land is short，severely restricting the development.Therefore，Anhui Province must reduce the agricultural population in the northern part to improve its urbanization rate and boost the development of modern agricultural industry with scale operation as a platform.The central part of Anhuiand the areas along the Yangtze River should make the agricultural population become urban residents to increase the rate of urbanization.However，the biggest bottleneck lies in the solidifying problem of arable land protection，construction land and other land-related indicators.Based on this，this paper studies the market-based adjustment of land-related indicators under the legal framework of＂provincial governors assuming responsibility for the arable land protection＂in order to provide an institutional tool for the urbanization within the province.

2 Land-related indicators and the market ization of them

2.1 Land-related indicators and their classificationThe land-related indicators are a general term of all indicators related to land.In this paper，we classify various types of land-related indicators and divide them into two categories of indicators.One is the land-related indicator for the protection of arable land resources，such as basic farmland designation indicator and requisition-compensation balance indicator；the other is the land-related indicator for ensuring development，such as land consolidation conversion indicator，construction land replacement indicator，mining wasteland reclamation，adjustment and utilization indicator and construction land indicator.

2.2 The origin of market ization of land-related indicators

2.2.1 Marketization of land-related indicators abroad.The foreign studies on the marketization of land-related indicators are mainly focused on transferable development rights（TDR）.England first developed the idea of development rights and ways to transfer development rights.In 1947，England issued Town and Country Planning Act to create the land development rights in the form of law，aimed at effectively controlling land development and use.The US implements the private land ownership，and the land development rights belong to land owners.Land development rights system mainly consists of land development rights transfer system established in 1968 and development rights requisition system established in 1974.France sets the upper limit density system to restrict land development，with the purpose of stabilizing land prices and reduce the blindness and spontaneity of real estate market.Now，the ideas and theories concerning TDR at abroad（especially the United States）have matured，and a lot of success stories have been accumulated.TDR is a market-oriented policy tool used as a supplement to zoning regulation，which not only improves the rigid zoning regulation，but also increases the efficiency of land use and configuration［1］. The foreign literature has launched a large number of fruitful discussions on the economic，social and legal context，market structure and role of government associated with TDR.It is instructive for us to better understand domestic indicator trading and marketization of land-related indicators.

2.2.2 Domestic practice and trends.Zhejiang and other provinces carried out the policy innovation on the transaction of landrelated indicators in 2002，such as compensation mechanism of cultivated land protection in different regions，and requisition compensation balance of arable land.However，due to local leaders'sided pursuit of political performance，chaotic indicator transaction agency structure and inefficient management，the excessive management lacking the total amount control results in the construction land sprawl.In 2004，the central government issuedUrgent Message about Further Carrying out the Land Market Control and Strict Land Management，requiring strict control over requisition-compensation balance of arable land.In 2005，the central government first included land consolidation conversion indicators in the annual plan.In 2007，it released Notice of the State Council on Strict Implementation of Laws and Policies Related to Rural Collective Construction Land and directly halted the paid conversion indicator transaction［2］.In April 2006，the Ministry of Land and Resources listed Shandong，Tianjin，Jiangsu，Hubei and Sichuan as the first pilot sites for linking increase and decrease of urban and rural construction land.In June 2008，it promulgatedManagement Practices of Linking Increase and Decrease of Urban and Rural Construction Land，and then 19 new provinces became the pilot sites of linking increase and decrease［3］.A few local governments blindly pursue performance and increase urban construction land quota and demolish farmers' homestead and occupy farmland，causing infringement upon the rights and interests of farmers and affecting the normal order of land management.The central government promptly issuedNotice of the State Council on Strictly Regulating Pilot Work of Linking Increase and Decrease of Urban and Rural Construction Land and Effectively Strengthening the Rural Land Consolidation，to require effective measures and correction.Subsequently，linking increase and decrease of land enters into a＂depression＂phase［4］.But there are many success stories at home such as Chongqing's land ticket model. In 2008，Chongqing Mayor Huang Qifan creatively presented land ticket system to channel urban capital into rural land consolidation.The decrease of rural construction land and increase of urban construction land are closely linked with the market and the land resources are allocated through market，which increases the land use efficiency and rationally allocates value-added benefits from land transfer.Chongqing's land ticket system has greatly inspired the enthusiastic participation in rural land consolidation and ensured sustainable development of urbanization in Chongqing，so it is considered a＂great creation＂［5］.

3 Empirical analysis of land transaction between different regions in Anhui Province

3.1 Study area

3.1.1 Transfer-out region of construction land quota.Chuzhou City has a large area of arable land，and it is an important transfer-out region of construction land quota for the requisition-compensation balance indicator transaction in Anhui Province.In 2006，it took the lead to try the land transaction and had many success stories of reference value，so we choose Chuzhou City as the transfer-out region of construction land quota.

3.1.2 Transfer-in region of construction land quota.Ma'anshan City is an industrial city，and it is affected by Nanjing economic circle.Since2000，the economic and social development has been accelerated，and the insufficient construction land quota has become an important bottleneck.It mainly trades with Chuzhou City on land-related indicators.Therefore，we choose Ma'anshan City as the transfer-in region of construction land quota.

3.2 Analysis of transaction of land-related indicators between different regions

3.2.1 Transaction process.First，Business Department of Chuzhou Land Bureau forecasts the annual municipal project land demand each year and conducts preliminary estimate of the demand of arable land for requisition-compensation balance.Second，based on estimate of demand for arable land，it makes the plan and reports it to Municipal Bureau of Land and Resources to initially determine the quantity of new arable land indicators and paid transfer standard.Third，it is reported to Municipal Government Land Management Committee for discussion.Fourth，the government issues the official document of on paid adjustment of new arable land indicators and clearly determines the adjustment standards，agreement signing，payment mode，and information and time of arable land adjustment.

3.2.2 Transaction patterns.（i）Using provincial platform to achieve traction between different regions.Since July 23，2010，about14000mu of arable land quota has been transacted via the provincial trading platform.There is a differentnumber of transactions for the city's six counties.The transferees include Ma'anshan，Huaibei，Huangshan，Xuancheng and Jiangnan Industrial Cluster Area，and the transaction price ranges from 18000 to 40000 yuan.During 2002-2011，the counties（cities）under the jurisdiction of Chuzhou transferred a total of 44863.91 mu of land quota.The platform transactions are more than non-platform transactions，indicating that the overall trend of quota trading is market-oriented and transparent［6］.（ii）Using the municipal platform to achieve municipal coordination and adjustment.There are no arable land resources in Chuzhou City for requisition-compensation balance，and in order to resolve the demand for requisition-compensation balance of construction land，the city government decided to adopt the way of compensation to coordinate and adjust the new arable land indicators annually.At the end of 2013，30000mu of new arable land quota was added from various counties for the city，mainly used for the construction of various projects（Fig.1）.The compensation standard was gradually increased from 2500 yuan/mu to 10000 yuan/mu，showing an increasing trend（Fig.2）.

3.2.3Effectiveness and problems.The land transaction provides more space for the development of indicator inflow region，easing the shortage of land resources during the industrialization and urbanization.The indicator outflow region uses transactions to avoid the waster of remaining indicators，improve the land conservation and intensive use，get scarce development funds，and promote economic and social development of the region［7］.However，due to imperfect market mechanism and government-led non-market model，it will lead to the outflow of considerable indicators，which is not conducive to the long-term development of indicator outflow region［8］.In addition，in the process of transaction of arable land requisition-compensation balance indicator，the arable land indicators decrease in the indicator inflow region，and there is a need to be supplemented by the indicator outflow region to achieve requisition-compensation balance of arable land，but it is often the book supplementation and the land-related indicator transaction between different regions is not well implemented.

4 Conclusions and recommendations

4.1 ConclusionsThe land transaction can effectively promote the inter-regional transfer of land factors，and optimize the allocation of land resources.However，the land transaction can not take the government-led non-market mode，otherwise it will lead to unfair trading and waste of resources.Therefore，establishing the market-oriented operation mechanism for land-related indicators within the province is the only way to achieve the capital-based transition of land resources，which can not only promote the optimal allocation of resources，but also enhance the new urbanization and agricultural modernization in Anhui Province.

4.2 Recommendations

4.2.1 Establishing a unified visible market for land-related indicators in the province.In order to facilitate the unified release and standardized management of indicator supply and demand information within the province，it is necessary to build a unified trading platform for land-related indicators in the province and improve the transaction transparency of land-related indicators，so that the land indicator price is truly determined by the market，the trading price is fair，and the government is directly involved in the trading and distribution of benefits［9］.

4.2.2 Well implementing the arable land protection.During the land transaction between different regions，the indicator outflow region should effectively supplement arable land indicators，and increase the size of arable land，to ensure the dynamic equilibrium of arable land between regions.It is necessary to prohibit book supplementation under the guise of indicator trading to maintain food security，and implement arable land protection in terms of system and blueprint.

4.2.3 Implementing the supporting policies for land-related indicator transaction between different regions.Under the premise of adhering to the basic principles of＂pilot first，advancing steadily，government guidance，market players，standardized management，open operation，sound supervision and improving services＂，it is necessary to introduce the guiding opinions at the national level to regulate the market transactions of requisition-compensation balance indicators as soon as possible，and clearly define the key parts such as generation of requisition-compensation balance indicators，indicator transaction，indicator use and distribution of income.It is also necessary to strengthen the indicator trading and use regulation，establish and improve the additional arable land productivity checking and quality inspection system［10］.

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