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

Author

Listed:
  • Jan Rouwendal

    (Vrije Universiteit Amsterdam)

  • Lynn Bouwknegt

    (Vrije Universiteit Amsterdam)

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.

Suggested Citation

  • Jan Rouwendal & Lynn Bouwknegt, 2023. "The effect of urban trees on house prices: evidence from cut-down trees in Amsterdam," Tinbergen Institute Discussion Papers 23-059/VIII, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20230059
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    References listed on IDEAS

    as
    1. Jan Rouwendal & Willemijn Weijschede- v.d. Straaten, 2008. "The costs and benefits of providing open space in cities," CPB Discussion Paper 98, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    3. Dani Broitman & Eric Koomen, 2020. "The attraction of urban cores: Densification in Dutch city centres," Urban Studies, Urban Studies Journal Limited, vol. 57(9), pages 1920-1939, July.
    4. Butts, Kyle, 2023. "JUE Insight: Difference-in-differences with geocoded microdata," Journal of Urban Economics, Elsevier, vol. 133(C).
    5. Anderson, Soren T. & West, Sarah E., 2006. "Open space, residential property values, and spatial context," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 773-789, November.
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    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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