Almost sixty percent (17 million acres) of Pennsylvania’s 28 million acres is forested. The estimated half a million private forest landowners own about 12 million acres (70 percent) of the forest land. The timber and forest products industry is one of the largest manufacturing sectors in the state, employing over 80,000 workers in 2,500 firms. The value added contribution to the state’s economy by the forest sector is over 5 billion dollars annually. For the agricultural production sector and processing sector value added is approximately $2 billion and $8 billion respectively. State wide there is over 86 billion board feet of standing timber valued at about $24 billion. Nationally, Pennsylvania ranks number one in hardwood production and forest-based recreation in Pennsylvania is a large component of tourism, the state’s second-largest industry.

Economic Benefits of Trees in Communities

Heating and Cooling Costs

A 25 foot tree reduces annual heating and cooling costs of a typical residence by 8 to 12 percent. While asphalt paving, and concrete building and walkways reflect heat causing “heat islands”, a mature tree canopy reduces air temperatures by about 5-10 degrees F, influencing the internal temperatures and air conditioning needs of nearby buildings.

Retail and Commercial Environments

Businesses work hard to offer products and services that meet their customers’ needs. Trees stimulate retail and commercial business districts by attracting shoppers, increasing sales and revitalizing declining downtowns. In a survey of communities, 74% of the public preferred to patronize commercial establishments whose structures and parking lots had trees and other landscaping. In a survey of real estate appraisers, 86% agreed that landscaping added to the dollar value of commercial property, and 92% also agreed that landscaping enhances the sales appeal of commercial real estate.

Residential Property Values

House prices are also influenced by the presence of trees. Developers can maximize profits by retaining healthy existing trees, or by replanting trees after construction is completed. Several studies have analyzed the effects of trees on actual sales prices of residential properties. Homes with equivalent features, square footage, and location were evaluated. Trees
increase property values by 10-15% (one study in the Kensington area of Philadelphia showed a 9% increase, or $3,400 from the presence of a newly planted tree with 50 feet of the house).

The following websites explore the economic benefits of trees and forests:

Trees Pay Us Back is an excellent site developed by the USDA Forest Service

Trees in Consumer Environments research.

Trees Mean Business a study of the economic impacts of trees and forests in the commercial districts of New York city and New Jersey.