Study On House Owners’ Willingness To Accept Of House Expropriation In Urban Renewal

Urban renewal is the inevitable requirement of China’s urbanization and intensive land-use. Regulate the behavior of house expropriation is a key link to impel the process of urban renewal. Reasonable compensation mechanism to protect private property is the basic goal of our house expropriation legislation. The State-owned Land and House Expropriation Compensation Ordinance which is enact in January2011,determines the government as the subject of implementation in the premise of public interest shall impose."Compensation of the house, shall not be lower than the real estate market price of a similar house on the day of publication of the expropriation decision". According to the principle of full compensation, the value involved in the expropriated house ought to include the objective value before expropriation, the subjective value before expropriation, the affected value produced by compensation and the transaction cost. Lower limit as compensation legislation on market price, has no consideration of the subjective value of loser. the increment of value generated by expropriation, and the chance of reaping a surplus from trade. Therefore, compensation on the base of market price can be a full compensation.The endowment effect theory and fairness preference theory of behavioral economics were used to be the interpretation framework, to build the model of house owners" Willingness to Accept(WTA) in house expropriation of urban renewal, thus to explain the influence factors of WTA will deviate from the market value. On the one hand, because the endowment effect is derived from the items given to special emotions, so we try to use amartya sen’s theory of practical ability to design function satisfaction scale, which may explain the subjective value of house owner. On the other hand, the house owner will express the support or resistance to impose the compensation price "rewards and punishment", or control, therefore, we design fairness perception scale in the light of the expropriation practice and fairness preference related theory, to verify if fairness perceptions will affect willingness to be expropriated and WTA.To verify the above model, a questionnaire survey was taken in23communities, which were in the scope of the urban renewal of Huangshi city, Hubei province, recycling effective questionnaire493copies. Exploratory factor analysis and confirmatory factor analysis showed that the redevelopment community on the function of the residential satisfaction can be divided into five dimensions:satisfaction with facility, satisfaction with leisure, satisfaction with living, satisfaction with community emotional attachment and satisfaction with asset. Fairness perceptions can be divided into three dimensions: intention fairness, process fairness and distributive fairness. By the means of structural equation model, the WTA model validated the conclusions show as follows:(1) Houses used to live have endowment effect, so the market price cannot meet the house owners’s WTA.(2) House owners’satisfaction with the function of houses has a positive influence on WTA. To be specific:①The assets function of house in the urban renewal zone is the most important factors affecting the WTA, which reflects house owners’appeal to the land development rights.②The houses’facilities and environment determines the house owners’development opportunities and the quality of life before the expropriation, is one of the important factors affecting WTA.③Neighborhood attachment of old communities is house owners’cherished part.(3) The existence of fair preference behavior, overthrew the viewpoint that fairness and efficiency is opposite. To be specific:①If the purpose of expropriation is public interest will affect house owners’fairness perceptions, which affects willingness to be expropriated and WTA.②Although house owners have no expropriation decision-making power, but the process whether to be a "right to speak", will affect willingness to be expropriated and WTA.③Distributive fairness perception before expropriation from experience will influence its WTA, but does not affect willingness to be expropriated.According to the empirical study conclusion, combined with China’s current house expropriation legal system defects and the actual national condition, the house expropriation and compensation policy in the urban renewal should be perfected from the following several aspects:(1) The distinction between the public interest needs and economic development needs.(2)Set up a contract to buy as a prepositional procedure.(3) Establish decision-making hearings before expropriation decision.(4) Improve public participation in compensation decision making.(5)Provide diversified resettlement plan.(6) The establishment of an independent judicial relief channels.(7) To establish a long-term communication mechanism between house owners and government.(8) Be transparency of compensation.(9) Improve the compensation standard according to the period of resident.