Cool cities: The value of urban trees
This paper estimates the value of urban trees. The empirical strategy exploits an ecological catastrophe — the Emerald Ash Borer (EAB) infestation in Toronto to isolate exogenous variation in neighborhood tree canopy changes. Adding one tree to a postcode increases property prices by 0.40%; the hardest-hit areas lost 7% tree cover, resulting in a 6% property price decline. The tree premium includes the value of tree services and aesthetics. Our results demonstrate a significant impact of trees on mitigating urban heat and generating energy savings. However, the total amenity value of trees exceeds the combined value of these services.