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Bloom and Bust: Toxic Algae’s Impact on Nearby Property Values

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  • Wolf, David
  • Klaiber, H. Allen

Abstract

Over the past decade harmful algal blooms (HABs) have become a nationwide environmental concern. HABs are likely to increase in frequency and intensity due to rising summer temperatures caused by climate change and higher nutrient enrichment from increased urbanization. Policymakers need information on the economic costs of HABs to design optimal management policies in the face of limited budgets. Using a detailed, multi-lake hedonic analysis across 6 Ohio counties between 2009 and 2015 we show capitalization losses associated with near lake homes between 12% and 17% rising to over 30% for lake adjacent homes. In the case of Grand Lake Saint Marys, we find capitalization losses exceeding $48 million for near lake homes which dwarfs the State of Ohio’s cleanup expenditure of $26 million.

Suggested Citation

  • Wolf, David & Klaiber, H. Allen, 2016. "Bloom and Bust: Toxic Algae’s Impact on Nearby Property Values," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235159, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea16:235159
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    1. repec:eee:ecolec:v:161:y:2019:i:c:p:32-40 is not listed on IDEAS
    2. Chen, Wei & Wolf, David M. & Gopalakrishnan, Sathya & Haab, Timothy C. & Klaiber, Allen, 2018. "The Impact of HABs on Recreational Visits to Lake Erie," 2018 Annual Meeting, August 5-7, Washington, D.C. 274026, Agricultural and Applied Economics Association.
    3. Wolf, David M. & Georgic, Will C. & Klaiber, Allen, 2017. "Reeling in the Damages: Harmful Algal Blooms' Impact on Lake Erie's Recreational Fishing Industry," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258096, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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