How Land Transactions Affect Carbon Emissions: Evidence from China

Land use change has become the second-largest source of greenhouse gas emissions after fossil energy combustion. In the context of developing a low-carbon economy, it is important to study how to achieve energy savings and emission reduction by adjusting land prices, and transforming land trading methods and land use types. Utilizing a balanced panel dataset about 291 sample cities in China, during the period of 2010-2016, this paper divided land transactions into three dimensions: land transaction price, land transaction modes, and land transfer structure; then employed a fixed-effect model to investigate the relationship between land transactions and carbon emissions. On top of this, we further analyzed the moderating role of economic development level and emission reduction policy. This study found that land transaction price can significantly inhibit carbon emissions; the amount of land sold by auction and listing has a stronger inhibitory effect on carbon emissions than by bidding; the higher the transfer proportion of industrial land, the higher the carbon emissions, while the transfer proportion of residential land is significantly negatively correlated with carbon emissions; the moderating mechanism shows that the level of economic development and emission reduction policy can play a moderating role in the relationship between land transactions and carbon emissions, but the moderating effect of emission reduction policy is limited, only existing in the relationships between land transaction price, the amount of listed land, and carbon emissions.