From Isotopic Evidence to Economic Valuation: A “Water–Carbon–Economy” Nexus Framework for Climate-Resilient Urban Forestry in Southwestern China

Optimizing public investment in urban green infrastructure under water scarcity is a core challenge in resource economics. Against the backdrop of global climate change—characterized by rising temperatures, increased frequency and intensity of droughts, and altered precipitation patterns—this study addresses the critical knowledge gap in quantifying the economic returns on the physiological adaptations of urban trees, which are central to their value as natural capital. We integrated dual-water isotope (δ 2 H, δ 18 O) and leaf carbon isotope (δ 13 C) analyses to mechanistically decode the water use strategy of Machilus yunnanensis ( M. yunnanensis ) in drought-prone Kunming, China. The results show strategic seasonal plasticity: a shift from shallow soil water (10–50 cm) in the wet season to deeper soil sources (50–90 cm) and stem reserves in the dry season, coupled with a dynamic, diurnally variable water use efficiency (WUE 13C ). We then constructed a transparent economic valuation model translating these traits into three quantifiable benefit streams: (1) operational cost savings (EV 1 ) from reduced irrigation demand; (2) enhanced marginal productivity of water (EV 2 ) in ecosystem service generation; and (3) climate resilience value (EV 3 ) via mitigated mortality risk. Our “Water–Carbon–Economy” nexus framework provides a generalizable methodology for assessing the cost-effectiveness and risk-adjusted returns of urban forest species, demonstrating that tree selection based on such eco-efficient traits is not merely an ecological choice but a sound economic investment, offering direct implications for budget-constrained municipalities seeking to maximize green infrastructure benefits under climate uncertainty.