The Spatial Dynamics of the Economic Impacts of an Aquatic Invasive Species: An Empirical Analysis

Katherine Y. Zipp, David J. Lewis, Bill Provencher and M. Jake Vander Zanden


This paper examines how the economic loss from an aquatic species invasion of a freshwater lake is allocated between users of the lake itself (own-lake effect) and users of neighboring lakes that become invaded because the lake is a new source of the invader (spillover effect). The empirical application concerns the Eurasian watermilfoil invasion in the lake-rich landscape of northern Wisconsin. Results suggest that coordinated management across lakes provides its highest economic value in the early years of an invasion, before high-value, high-traffic lakes are invaded, and drops quickly once the invasion claims these lakes. (JEL Q51, Q57)

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