Whoever uses it, pays for it. A land value approach to sustainable historic district conservation in China

This study examines urban historic districts in China as a representative form of urban heritage and investigates how land value increment mechanisms under the land finance system influence stakeholders’ decisions and contribute to sustainability challenges in heritage conservation. It argues that within a government-led land finance paradigm, public investment embodied in land value increment is partly privatised by original residents through property transactions, while conservation costs are transferred to society at large and future users, raising concerns over equity and long-term viability. Using a theory-driven qualitative approach based on conceptual modelling and normative analysis, the study distinguishes different sources of land value increment and compares their operation under conventional land development and historic district conservation. On this basis, the paper proposes a ‘whoever uses it pays for it’ paradigm for historic district conservation, which reallocates responsibilities and benefits in accordance with actual use of conserved areas. By clarifying rights, obligations, and funding flows within the existing institutional framework, this approach aims to establish a more sustainable conservation financing mechanism. The study contributes to debates on urban heritage governance in China and offers policy implications for aligning land policy with sustainable conservation objectives and the realities of post-growth urban development. • Accumulated land value in historic districts are critical resources shaping stakeholder decisions. • Conservation investment in historic districts is effectively privatised. • ‘Whoever uses it pays for it’ paradigm outlines a responsibility-based sustainable funding model. • Urban historic districts can serve as pilot sites for policy innovations.