The effect of an aquatic invasive species (Eurasian watermilfoil) on lakefront property values

Invasive species are one of the major threats to ecosystems. One of these “invaders”, Eurasian watermilfoil, can crowd out important native aquatic plants, decrease habitat and diversity of native species in a lake, and interfere with water-based recreation. This study uses a hedonic property-value method to estimate the effect of Eurasian watermilfoil on lakefront property values at selected Vermont lakes. Results indicate that as the primary component of total aquatic macrophyte growth in a lake Eurasian watermilfoil significantly and substantially affects lakefront property values. As Eurasian watermilfoil infests a lake, adding to the total macrophyte growth, property values can diminish by < 1% to 16% for incremental increases in the infestation level. Hence, policies that successfully prevent infestations have significant economic benefits to owners of lakefront properties and local communities.