Based on an extensive literature review on intelligent cities, smart cities, and happy cities, and on their conceptual connections with citizens' well‐being, quality of life, and happiness, we developed a resource‐based view on City Quality: the PESNAT (political, economic, social, natural, artificial, and technological) framework. The concept of City Quality rests on the idea of cities interconnected sub‐habitats—PESNAT—which are powerful analytical categories needed for understanding cities as complex and intricate loci. This framework eventually aims at assessing the cities' power to attract businesses and people, to contribute to a sustainable development of the city and an increased quality of life. Furthermore, two hypotheses are outlined regarding the level of importance of each sub‐habitat in relation to happiness, and the level of controversy of each one for citizens, city planners, and decision makers.

As the urban world population grows steadily, cities have become the main habitat for human beings. Against this backdrop, city quality or the level of development of the city's habitat that ensures the satisfaction of objective and subjective human needs become a matter of growing interest and concern for academics, policy makers, and citizens. Building on a resource‐based view of city quality, the aim of this paper is twofold. First, it proposes and validates scales for six city sub‐habitats: political, economic, social, natural, artificial, and technological. Second, it tests a model and the underlying hypothesis about the ranking of those sub‐habitats and of the perceived controversy regarding decision making upon them. For those purposes, a survey of 768 city inhabitants was conducted in Portugal to measure city quality and their sub‐habitats. Both the predicted ranking of importance of the sub‐habitats and the perceived ranking of controversy were empirically validated. The results constitute a novel and important contribution to understand city quality and its sub‐habitats, whose conceptual power relies on hierarchized factors linked to citizens’ happiness and to the level of controversy of the solutions.

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