The Effects of Aquatic Invasive Species on Property Values: Evidence from a Quasi-Experiment

This study uses hedonic analysis to estimate the effects of a common aquatic invasive species—Eurasian watermilfoil (milfoil)—on property values across an extensive system of over 170 lakes in the northern forest region of Wisconsin. Since milfoil is inadvertently spread by recreational boaters, and...

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Bibliographic Details
Published in:Land economics 2009-08, Vol.85 (3), p.391-409
Main Authors: Horsch, Eric J, Lewis, David J
Format: Article
Language:English
Subjects:
Datasets
Economic models
Economic value
Ecosystems
Environment
Estimation
Herbs
Invasive species
Lakes
Lakeshores
Land economics
Mathematical models
Natural resources
Neighborhoods
Nonnative species
Property values
Sea
Spatial models
Species
Standard error
Studies
U.S.A
Wisconsin
Zoning
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Summary:This study uses hedonic analysis to estimate the effects of a common aquatic invasive species—Eurasian watermilfoil (milfoil)—on property values across an extensive system of over 170 lakes in the northern forest region of Wisconsin. Since milfoil is inadvertently spread by recreational boaters, and since boaters are more likely to visit attractive lakes, variables indicating the presence of milfoil are endogenous in a hedonic model. Using an identification strategy based on a spatial difference-in-differences specification, results indicate that lakes invaded with milfoil experienced an average 13% decrease in land values after invasion. (JEL Q51, Q57)
ISSN:0023-7639
1543-8325
DOI:10.3368/le.85.3.391