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

Author

Listed:
  • Horsch, Eric J.

    (Stratus Consulting, Boulder, CO)

  • Lewis, David J.

    (University of Wisconsin, Madison)

Abstract

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.

Suggested Citation

  • Horsch, Eric J. & Lewis, David J., 2008. "The Effects of Aquatic Invasive Species on Property Values: Evidence from a Quasi-random Experiment," Staff Paper Series 530, University of Wisconsin, Agricultural and Applied Economics.
    • Handle: RePEc:ecl:wisagr:530
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    Cited by:

    1. Dennis Guignet & Matthew T. Heberling & Michael Papenfus & Olivia Griot, 2022. "Property Values, Water Quality, and Benefit Transfer: A Nationwide Meta-analysis," Land Economics, University of Wisconsin Press, vol. 98(2), pages 191-218.

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    More about this item

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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