Planning-Induced Land Development Opportunities and Rural Household Income Disparities: Evidence from Wuhan’s Urban Development and Wetland Conservation Zones

While land development opportunities stemming from planning regulations demonstrably influence rural household income, quantitative evidence quantifying these effects remains limited. Measuring and decomposing these effects can empirically support territorial spatial planning policies aimed at alleviating associated regional development imbalances and advancing sustainable rural development. This study selects Wuhan’s Sino-French Eco-City (urban development zone) and Xiaosi Township (wetland conservation zone) as typical zones. Based on 573 randomly sampled rural households, we explore the effects of land development opportunities on rural household incomes and find that: (1) Land development opportunities for non-agricultural conversion in the urban development zone significantly increase rural households’ total income, wage income, though their corresponding contribution rates are limited. Endogenously accumulated endowments such as human capital and economic status dominate the formation of such income gaps. (2) Planning-induced land development opportunities yield coefficients of 1.0442 for local employment income and −0.4567 for agricultural business income, with both statistically significant at the 1% significance level. Decomposition results show their respective contribution rates of 70.68% and 86.77%, demonstrating that such opportunities primarily account for cross-regional rural household income gaps. (3) Whereas non-agricultural land development opportunities narrow disparities in households’ local employment income, they raise inequality in rural households’ migrant employment, business, property and transfer income. These growth and equality-enhancing effects on local wage income are particularly pronounced for households possessing high-quantity but low-quality human capital. This study recommends supporting protected zones via farmer vocational training, expanded rural public service expenditure, and a benefit-sharing mechanism that channels land development gains to ecological and agricultural regions to strengthen households’ endogenous development capacity.