RT Journal Article
SR Electronic
T1 The Effects of Aquatic Invasive Species on Property Values: Evidence from a Quasi-Experiment
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 391
OP 409
DO 10.3368/le.85.3.391
VO 85
IS 3
A1 Eric J. Horsch
A1 David J. Lewis
YR 2009
UL http://le.uwpress.org/content/85/3/391.abstract
AB 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)