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Cool cities: The value of urban trees

Author

Listed:
  • Lu Han
  • Stephan Heblich
  • Christopher Timmins
  • Yanos Zylberberg

Abstract

As urban populations grow, more people face extreme heat, increasing demand for natural cooling. Urban trees offer various amenities, including cooling benefits, yet their economic value is hard to quantify. This paper estimates the implicit value of urban trees by exploiting the Emerald Ash Borer infestation caused by an invasive beetle that kills ash trees in Toronto as an exogenous shock. We find that a one-percentage-point increase in a postcode’s tree cover raises property prices by 1.16% and reduces exposure to extreme heat, pollution, and energy consumption. These findings underscore trees as a cost-effective, practical strategy for mitigating urban warming.

Suggested Citation

  • Lu Han & Stephan Heblich & Christopher Timmins & Yanos Zylberberg, 2025. "Cool cities: The value of urban trees," Bristol Economics Discussion Papers 25/791, School of Economics, University of Bristol, UK.
    • Handle: RePEc:bri:uobdis:25/791
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    More about this item

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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