Benefit distribution of collectively-owned operating construction land entering the market in rural China: A multiple principal–agent theory-based analysis

Abstract

Abstract The benefit distribution mechanism is the key to collectively-owned operating construction land (COCL) entering the market. Based on the multiple principal–agent relationship between stakeholders, this paper establishes a theoretical model of COCL benefit distribution, quantitatively analyzes the optimal benefit distribution ratio of stakeholders, and simulates the optimal benefit distribution ratio of each subject’s interests under different circumstances. The benefit distribution mechanism constructed in this paper can maximize stakeholder interest and land-use efficiency, stimulate the enthusiasm of participants, and ensure the smooth implementation of policies. The results show that in order to maximize land values, enterprises should also be included in the benefit distribution. The optimal benefit distribution ratio of the village collective mainly ranges from 10% to 20%, and that of farmers mainly ranges from 20% to 30%. The optimal benefit ratio of enterprises and government fluctuates widely, mostly ranging from 10% to 70%, respectively. There are obvious regional differences and industry differences in the optimal benefit distribution ratio of COCL. In developed areas, the benefit distribution ratio of enterprises can be moderately expanded, and the market-led mode can be adopted; in less developed areas, the benefit distribution ratio of local government can be moderately increased, and the government-led mode is more appropriate. Industries with a low cost coefficient and operating income that mainly depends on their own production capabilities should have a higher benefit distribution ratio, whereas industries with a higher cost coefficient and operating income greatly affected by other factors should have a lower benefit distribution ratio. Accordingly, some suggestions are made to promote the orderly introduction of COCL into the market based on stakeholder interest considerations.