The Effects of Zebra Mussel (Dreissena Polymorpha) Infestations on Property Values: Evidence from Waupaca County, Wisconsin, USA

24 Pages Posted: 1 Nov 2014

See all articles by Martin Meder

Martin Meder

Nicholls State University - College of Business Administration

Marianne Johnson

University of Wisconsin - Oshkosh - Department of Economics

Date Written: October 30, 2014

Abstract

Containment strategies for invasive species often require significant changes in behavior. Success in fostering these changes requires that individuals correctly perceive the costs and benefits. Yet, while both the ecological and aesthetic impacts of some invasive species are universally negative it less clear how lakefront property owners might view zebra mussel infestations. Zebra mussels negatively affect the local ecology, crowd out native species, and deposit sharp shells on beaches. However, they are also associated with increased water clarity, a reduction in suspended pollutants, and increased numbers of popular game fish. We use a spatial lag and spatial error hedonic model to estimate the impact of zebra mussel infestations on lakefront property prices in Waupaca County, Wisconsin. We find no evidence that homes on infested lakes incur a penalty at sale; consequently, it may be difficult to generate compliance with containment strategies to effectively halt the spread of zebra mussels.

Keywords: Invasive Species, Zebra Mussels, Property Values, Hedonic Models

JEL Classification: Q51, Q57

Suggested Citation

Meder, Martin and Johnson, Marianne, The Effects of Zebra Mussel (Dreissena Polymorpha) Infestations on Property Values: Evidence from Waupaca County, Wisconsin, USA (October 30, 2014). Available at SSRN: https://ssrn.com/abstract=2516886 or http://dx.doi.org/10.2139/ssrn.2516886

Martin Meder

Nicholls State University - College of Business Administration ( email )

Thibodaux, LA
United States

Marianne Johnson (Contact Author)

University of Wisconsin - Oshkosh - Department of Economics ( email )

800 Algoma Blvd.
Oshkosh, WI 54901
United States
920-424-2230 (Phone)
920-424-1734 (Fax)

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