Cool cities: The value of urban trees

This paper estimates the value of urban trees and shows their ability to moderate temperatures during heatwaves and reduce energy consumption. The empirical strategy exploits an ecological catastrophe—the Emerald Ash Borer infestation in Toronto—to isolate exogenous variation in neighborhood tree canopy changes and finds that a single tree adds 0.45% to property prices within a postal code; the hardest-hit areas lost 7 percentage points in tree canopy cover, resulting in a 7% property price decline. Trees significantly cool urban areas and save energy, but their total amenity value surpasses the value of these ecosystem services, highlighting their cost-effectiveness in combating urban heat island effects.