Evading invasives: How Eurasian watermilfoil affects the development of lake properties

James S. Goodenberger and Henry Klaiber

Ecological Economics, 2016, vol. 127, issue C, 173-184

Abstract: Eurasian watermilfoil is an aquatic invasive plant that has spread rapidly through freshwater lakes across the United States. Along with being a hazard to local ecosystems, milfoil is a nuisance to those who use lakes for recreation, and its presence has been shown to lower lakefront property values. This study presents the first evidence of the effects of Eurasian watermilfoil on the probability that undeveloped properties near lakes are developed into single-family housing units. Using a comprehensive dataset from the Twin Cities, Minnesota region, a duration model of land conversion is estimated using data on new home construction from 1990 through 2005. We find that undeveloped parcels of land on and near lakes invaded by Eurasian watermilfoil are less likely to be developed than their counterparts on non-invaded lakes. In counterfactual simulations, we show that absent spread after 1990, total development would increase in 112 of the region’s 650 census tracts by an average of 19 houses per tract.

Keywords: Invasive species; Housing supply; Hazard model; Milfoil; Lakes (search for similar items in EconPapers)
JEL-codes: Q57 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:127:y:2016:i:c:p:173-184

DOI: 10.1016/j.ecolecon.2016.02.015

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