The effect of urban trees on house prices: evidence from cut-down trees in Amsterdam

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Abstract

This paper studies the effect of urban trees on house prices in Amsterdam by utilizing a detailed data set of trees that were cut-down near the house. By using exogenous reasons the tree was cut-down such as disease or storm, unobserved heterogeneity can be dealt with, and a causal effect established. We use a staggered difference-in-difference approach to hedonic pricing analysis. We find an effect of 1.19 percent decrease in house prices when a tree is cut-down within 75 meters of the house. The effect is largest when trees within that area are scarce. This provides further evidence that urban trees are a valued aesthetic amenity for home owners and should be treated accordingly.
Original languageEnglish
PublisherTinbergen Institute
Volume23-059/VIII
Publication statusPublished - 22 Sept 2023

Publication series

NameTI Discussion Paper Series
Volume23-059/VIII

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