Jiang Kaikai, Gao Yichen, Zhao Taihe

Keywords： Rent Gap; Consumption Space; Space Production; Taikoo Li; Expected Ground Rent; Urban Development

Abstract：

Consumption space production is a special form of urban redevelopment, which switches capital from production process to consumption process and from the production of goods to the production of consumption space. Departing from the rent gap theory, this paper introduces a concept of expected rent based on the potential rent and the actual rent. Based on the modification, the paper divides the process of consumption space production of Taikoo Li of Chengdu into four stages: natural decline, government-led development, cooperation between government and capital, and diffusion of positive externalities. We find that (1) the production of consumption space is not a fully competitive market; (2) the production of consumption space has the spillover effect of rent gap; and (3) the government plays an enabling role in the production of consumption space.

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