Integrating Ecosystem Services in Transfer of Development Rights Programs

Preserving and enhancing ecosystem services (ES) in urban areas is crucial for improving quality of life, addressing environmental challenges, and supporting public health. However, urban densification often results in a reduction of green spaces, negatively impacting ES. The planning instrument of Transfer of Development Rights (TDR) offers a potential solution by concentrating urban development in suitable areas while protecting sensitive green spaces. As a market-based instrument, TDR facilitates urban regeneration, reduces disparities among landowners, and eliminates public costs associated with expropriation. Despite its promise, TDR programs often fail to fully achieve their environmental goals. On the other side, the integration of ES to inform planning decisions remains limited. This thesis explores the integration of ES into TDR programs, focusing on the ex-ante phase to enhance their environmental goals. A literature review, combined with content analysis, highlights the potential of ES to improve the design process of TDR. The ES approach places greater attention on receiving areas, shifting the focus from land conservation to spatial re-management. Two case studies investigate methods to assess the two key categories of ES for urban areas, provided by vacant lots. In the Northern Milan area (IT), lots suitable for preservation or restoration interventions are identified based on their current ecosystem condition, coupled with the demand for regulating services. In Ericeira (PT), indicators of attractiveness and accessibility assess the recreational potential of vacant lots and citizens’ site preferences define future research lines. These findings inform strategies for prioritizing vacant lots within TDR processes. The research underscores the value of integrating ES into TDR programs to balance urban densification with green space preservation. However, further studies are needed to refine data collection methods, analyze existing TDR applications, and explore complementary market-based tools. TDR should be seen solely as part of a broader, coordinated strategy for sustainable land use planning.