The Great Christmas Tree Debate: Real or Fake?
Brian Hunt, CPA, CPCU
Expert in helping construction and real estate development firms create their risk transfer programs.
It would be an understatement to say that we are facing deep divisions within our country. This tension was on full display this year as we headed into the presidential election. Fortunately, the election is over, and the winner was determined rather quickly, rather than the nation suffering through a long, drawn-out affair with the potential of political violence. While my candidate came in second, I'm just grateful it's been resolved.
However, there is still another point of contention within our country that has not been resolved. While the holiday season brings joy and cheer, it also brings to the surface one of the most heated debates in festive history:
Which is better - artificial Christmas trees or real trees?
It's a showdown that pits nostalgia, economics, and environmental concerns against each other in a tinsel-covered battle royale.
The Case for Fake Trees: A Financial Festivity
Right off the bat, one of the reasons the "Fakers" advocate for buying artificial trees is that over time, an artificial tree can save you money. As you run the numbers on this assertion, this statement can make sense. Specifically, spending on an artificial tree can result in a net present value (NPV) of approximately $1,275.
This assumes that you spend on a nice model ($300) and that a comparable real tree of the same size will cost about $250 (which is what I paid last week, but more on that later). So, if we assume that an artificial tree lasts about 10 years, the money you would have spent each year on a real tree gets invested in a mutual fund instead, earning 8% a year. As a result, you can see the financial benefit of going with an artificial tree.
Let's be honest, modern artificial trees have come a long way from their early plastic predecessors. Today's versions are remarkably realistic, with intricate branch designs, varied needle textures, and even built-in lighting options. In essence, they're the Swiss Army knife of holiday decor -- convenient, low-maintenance, and ready to roll out of storage at a moment's notice.
In addition to the potential cost savings, there are some practical benefits to going fake:
The Real Tree Revolution: Environmental Impact and Sustainability
However, as we all know, "money isn't everything". While buying a fake tree can make financial sense, there are several benefits from going with a real tree each year.
Right off the bat, when it comes to real trees, they've got some serious environmental street cred. The reason is that in essence, Christmas tree farms are mini forests that play a crucial role in carbon sequestration. Each acre of Christmas trees produces enough oxygen for 18 people daily while absorbing carbon dioxide and providing habitats for wildlife.
A typical Christmas tree takes about 7-10 years to mature, during which it actively contributes to environmental health. When harvested, these trees can be recycled into mulch, used for erosion prevention, or even submerged in lakes to create fish habitats (which is a popular use here in Texas). Many communities offer free tree recycling programs, making disposal environmentally friendly.
Climate Change Considerations
The carbon footprint tells an interesting story. A 2018 study by the American Christmas Tree Association found that a six-foot artificial tree has a carbon footprint of around 48.8 pounds of CO2 equivalent. In contrast, a real tree's carbon footprint is about 35.8 pounds -- if disposed of properly through recycling.
Also, another thing to consider is that artificial trees are typically manufactured in China (which if Trump has his way on tariffs, these things are about to get a lot more expensive) and shipped internationally, adding significant transportation emissions. In addition, most fake trees are made from non-biodegradable PVC plastic, which can take hundreds of years to decompose.
Real trees, however, are a renewable resource. Christmas tree farms are agricultural lands that continuously plant new trees, creating a sustainable cycle of growth and harvest. These are businesses looking to make money year after year. Hence, new trees are constantly being planted to provide a new inventory of trees each year.
Is There a Right Answer?
So, which tree wins? The truth is both have their merits. If you already own an artificial tree, continue using it. The most environmentally destructive option is repeatedly buying and discarding trees without consideration.
For those purchasing a new tree, consider these recommendations:
As for me, I'm part of team "Real". As my father told me a long time ago, "people with fake trees should get fake presents". He's come off that position in his later years, but I still like the sentiment.
I stated earlier that having a fake tree can save you time and gas driving around looking for that perfect tree each year. The thing is, for me, it's one of the reasons I enjoy real trees. I have fond memories of going with my father and siblings to look for that perfect tree.
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Later in life, my wife and I were blessed to have two girls and I always looked forward to taking my girls in pursuit of the tree that checked all the boxes: right height, nice triangle size, with no bare spots. These days, my girls are in Austin and aren't around to help me track down and claim my annual holiday prize, so I have to go solo.
Nevertheless, I take immense pride in getting my prize home, decorating it, and lighting it up for the Christmas season. Nothing better to watch either Lethal Weapon or Die Hard (two of the best Christmas movies ever!), drinking a lovely bourbon, and admiring my Christmas tree.
Sounds pretty good, huh?
Remember, whether you're a "Faker" or a "Realer", the spirit of the holiday remains the same. It's not about the perfection of your tree, but the memories created around it. So, in that spirit, gather your loved ones, string up some lights, and enjoy the magic of the season -- no matter what type of tree you choose.
Disclaimer: No Christmas trees were harmed in the writing of this article... well, maybe a few.
Et al,...
2025 Holiday Gift Guide
It's that time of the year when we are all running around trying to find the perfect gift for our loved ones. It can be hard to find something for someone, especially without any idea if the gift is going to hit your loved one's sweet spot. Well, in my never-ending effort to help my readers reduce the risks in their lives, let me help you with some gift recommendations based on my first-hand experience:
Books
On the Edge: The Art of Risking Everything -- In the most recent book by Nate Silver, the author provides an insightful exploration of risk-taking across various high-stakes domains, examining the strategies and psychological approaches of individuals who excel in uncertain environments. Through compelling narratives and analytical depth, Silver investigates how poker players, hedge fund managers, venture capitalists, and cryptocurrency entrepreneurs navigate and leverage risk to achieve extraordinary success.
This is a long book and so it took me some time to pick at it over several months. However, I found this book insightful and well worth the effort.
Nuclear War: A Scenario -- In the latest from Annie Jacobson, military strategists and security experts provide a chilling, meticulously detailed simulation of how a potential nuclear conflict between global superpowers could unfold, tracing a terrifyingly plausible escalation from initial tensions to full-scale thermonuclear exchange. The book methodically examines the geopolitical, technological, and human factors that could lead to such a catastrophic scenario, offering a stark warning about the existential risks of nuclear armament and the potentially irreversible consequences of strategic miscalculation.
I had a hard time putting this book down. Not only was it well written, but also incredibly terrifying.
Wine
Domaine Durand Sancerre, 2023 -- This selection is a vibrant Loire Valley Sauvignon Blanc that brilliantly captures its terroir with an intense bouquet of citrus, green apple, and signature flinty minerality.
At the bartender's recommendation, my wife recently had this at the Bob's Steak and Chop House located inside the Omni hotel in downtown Dallas. Needless to say, she was happy with the choice.
Threadcount Red by Joe Wagner, 2021 -- This wine presents itself as a bold and approachable wine that immediately catches the eye with its contemporary packaging and intriguing blend. Bursting with ripe dark fruit flavors---think blackberry, plum, and a hint of dark cherry---the wine delivers a plush, smooth texture that glides effortlessly across the palate, balanced by subtle hints of vanilla and a whisper of spice from what seems like judicious oak aging.
My wife is not a fan of most red wines since they often give her headaches. However, after our server at Kenny's Wood Fire Grill in Addison told us about this option, we went with it. Once again, the recommendation we got turned out well.
Bourbons
Still Austin Straight Bourbon Whiskey -- This concoction emerges as a standout craft expression from the heart of Texas, showcasing the distillery's commitment to locally sourced ingredients and small-batch precision. The whiskey presents a complex profile that begins with a warm, inviting nose of caramel and toasted oak, segueing into a palate rich with notes of vanilla, baking spices, and a subtle hint of white pepper, all underpinned by a smooth, well-balanced character that speaks to careful barrel selection and meticulous distillation. This spirit is a regular part of my rotation -- actually got a bottle at home right now.
Milam & Greene Bourbon Whiskey -- This spirit emerges as a sophisticated and nuanced expression that beautifully bridges traditional Texas craft distilling with meticulous blending techniques. The whiskey unfolds with a complex bouquet of warm vanilla, toasted caramel, and subtle oak, delivering a palate that balances rich honeyed sweetness with a gentle spice and a whisper of dried fruit undertones. Personally, I really enjoy this option. In fact, I recently used this in my world-famous chocolate, bourbon pecan pie over Thanksgiving.
So, I trust you found some of the above recommendations helpful. In the meantime, I hope all of you have a wonderful Christmas and holiday season. I look forward to sending you my newsletters in 2025. Cheers!
If you enjoy what you've read here and you think I might have a clue what I'm talking about, then please reach out to me if you would like me to present to your firm or organization. I have experience talking to professional organizations, trade conferences, as well as universities. I've also appeared in newspaper articles and podcasts. Also, I'm available for birthdays and bar mitzvahs.