Integrating Ecosystem Services in Transfer of Development Rights: A Literature Review

In recent years, transfer of development rights (TDR) programs have become widespread as a mechanism for implementing urban transformations and achieving planning goals. As market-based instruments, they facilitate land acquisition whilst avoiding compulsory purchases and minimizing public spending. By promoting urban transformation, TDR programs affect the provision of ecosystem services (ES) delivered by green and permeable areas. ES are essential for wellbeing, and the inclusion of ES in planning decisions promotes sustainable urban development. This research aims to provide a starting point for mainstreaming ES knowledge in TDR studies and application. Through a literature review, this paper aims to gain greater understanding as to what ways, and to what extent, ES have been considered so far in TDR studies and to identify if there is evidence that demonstrates how ES can be included in the design phases of TDR programs to improve their effectiveness in ensuring sustainable spatial transformations. The results show that the inclusion of ES can strengthen the ex-ante phase of TDR processes, supporting the development of the design features and paying greater attention to receiving areas identified during the process.