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Hedonic Analysis of Effects of a Nonnative Invader (Myriophyllum heterophyllum) on New Hampshire (USA) Lakefront Properties

  • Environmental Assessment
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Abstract

Introduced species are a major threat to the planet’s ecosystems and one of the major causes of species extinction. This study deals with some of the economic impacts of one of these “invaders,” variable milfoil. Variable milfoil can clog waterbodies, cause boating and swimming hazards, and crowd out native species. This study analyzed the effects of variable milfoil on shoreline property values at selected New Hampshire lakes. Results indicate that property values on lakes experiencing milfoil infestation may be considerably lower than similar properties on uninfested lakes. Results are highly sensitive to specification (variable selection) of the hedonic equation.

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Notes

  1. In the literature, terms such as “nonnative,” “nonindigenous,” “alien,” “exotic,” and “invasive” are often used interchangeably to describe (usually human) introduced species. In this article, the term nonnative will be used as a general term for consistency.

  2. Throughout this article, the term milfoil will be used to refer specifically to variable milfoil.

  3. While most of the information cited in this section is from New Hampshire sources, similar discussions can be found in many of the states dealing with milfoil, which range from Maine to North Dakota. A recent web search found over 2000 entries on variable milfoil, most dealing with individual lake issues.

  4. The specific time period (1990–1995) was initially chosen for consistency with two studies previously done at the University of Maine, so that a pooled data set could later be used to generate second stage hedonic estimates (Michael and others 1996).

  5. The ten lakes are Crystal, Halfmoon, Lee, MerryMeeting, Squam, Suncook, Waukewan, Wicwas, Winnesquam, and Winona.

  6. Model formulations that included a separate value for lake size (LKA) resulted in effects of milfoil ranging from decline of over 50% of property value (linear model) to about a 22% decline in values in the log-linear form (although the milfoil variable was not significant at the 10% level in this model).

  7. Thanks to an anonymous reviewer for this suggestion.

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Acknowledgments

The authors would like to thank Ju-Chin Huang and two anonymous reviewers for helpful comments. Thanks also for support from the New Hampshire Department of Environmental Services and Amy Smagula. Any remaining errors are those of the authors.

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Authors and Affiliations

  1. Department of Resource Economics and Development, University of New Hampshire, Durham, New Hampshire 03824 603-862-3914, USA

    John M. Halstead, Jodi Michaud & Shanna Hallas-Burt

  2. Regional Economist, U.S. Army Corps of Engineers, Fort Worth, Texas, USA

    Julie P. Gibbs

Authors
  1. John M. Halstead
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  2. Jodi Michaud
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  3. Shanna Hallas-Burt
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  4. Julie P. Gibbs
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Correspondence to John M. Halstead.

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Halstead, J., Michaud, J., Hallas-Burt, S. et al. Hedonic Analysis of Effects of a Nonnative Invader (Myriophyllum heterophyllum) on New Hampshire (USA) Lakefront Properties . Environmental Management 32, 391–398 (2003). https://doi.org/10.1007/s00267-003-3023-5

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