Open space preservation in an urbanization context

The objective of this paper is to address the question of open space preservation in an urbanization context. We study the possibility of preserving two different types of open spaces, namely, large open spaces at cities’ outskirts and small intraurban open spaces. Thus, we contribute to the debate of land sharing versus land sparing in an urban context. We analyze these questions by way of a theoretical microeconomic framework that takes into account both households’ preferences for open space and regulators’ interest in the preservation of natural habitat for biodiversity. We compare land use patterns at private equilibrium and when the social planner maximizes social welfare.