University of Wisconsin - Madison
University of Wisconsin - Madison
Henry Mall with flowering crab trees
Contact Information & Map
Staff Paper No. 530 - Abstract

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

Eric J. Horsch [ehorsch@stratusconsulting.com]
David J. Lewis [dlewis2@wisc.edu]
Staff Paper No. 530, November 2008, 40p.

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.
Last updated on Wed, May 13, 2009 10:13am
corner
Photo credits: Henry C. Taylor (left), Wisconsin Historical Society, WHi26622. Benjamin H. Hibbard, University of Wisconsin-Madison Archives.
corner
© Copyright 2009 University of Wisconsin Board of Regents