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

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  • Goodenberger, James S.
  • Klaiber, H. Allen

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.

Suggested Citation

  • Goodenberger, James S. & Klaiber, H. Allen, 2016. "Evading invasives: How Eurasian watermilfoil affects the development of lake properties," Ecological Economics, Elsevier, vol. 127(C), pages 173-184.
    • Handle: RePEc:eee:ecolec:v:127:y:2016:i:c:p:173-184
    DOI: 10.1016/j.ecolecon.2016.02.015
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    References listed on IDEAS

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    Cited by:

    1. Li, Xiaoyu & Gopalakrishnan, Sathya & Klaiber, Allen, 2018. "To Build or Not to Build: Examining Coastal Vulnerability via Residential Development in North Carolina," 2018 Annual Meeting, August 5-7, Washington, D.C. 274443, Agricultural and Applied Economics Association.
    2. Qiu, Yun & Gopalakrishnan, Sathya, 2016. "Defending the Shoreline: A Duration Model of Beach Re-Nourishment," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236361, Agricultural and Applied Economics Association.
    3. Yun Qiu & Sathya Gopalakrishnan & H. Allen Klaiber & Xiaoyu Li, 2020. "Dredging the sand commons: the economic and geophysical drivers of beach nourishment," Climatic Change, Springer, vol. 162(2), pages 363-383, September.

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    More about this item

    Keywords

    Invasive species; Housing supply; Hazard model; Milfoil; Lakes;
    All these keywords.

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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