When are D-graded neighborhoods not degraded? Greening the legacy of redlining

Abstract

This paper explores how geography shapes the legacy of redlining, the systemic mortgage lending bias against minority US neighborhoods. On average, redlined neighborhoods lag behind adjacent less-discriminated areas in home values, income, and racial composition. Yet, redlined neighborhoods near parks and water fare better. To help understand convergence, we inventory waterfront renovations, apply machine learning to historical imagery to track tree canopy changes, and instrument such changes exploiting tree replacements due to geographic variation in tree plagues and susceptible species. Findings suggest that enhancing waterfronts and increasing tree canopy can mitigate the long-lasting effects of institutionalized discrimination.