Transition of Land Finance and Sustainable Development: A Theoretical Analysis

Abstract

Land finance pushed up house prices, fueled the real estate speculation, caused the local government financial risk, and buried the hidden danger in macro economic stability. This situation must be reformed. The research method is literature analysis. The result shows: in order to lessen the negative effects of land finance, we should deepen and perfect the reform of fiscal and taxation systems, divide financial power and responsibility reasonably, look for alternative sources of revenue actively, and reform tax system. At the same time, it must be done to change land assets management mode, break the local government’s monopoly of the land, and thus eliminate the local government impulse of selling land to raise funds.