Economic benefits
of shoreland protection
Waterfront property owners, local governments, economies,
and taxpayers all benefit economically as a result of the amenities that
shoreland zoning preserves: clean water, wildlife, scenic beauty, and
peace and quiet. Surveys of Wisconsin lakefront property owners and visitors
consistently rate these as the amenities that attract them to the water.
Shoreline frontage values in Vilas and Oneida counties
increased an average of 7 to 12 % when towns had zoning requirements with
a minimum 200 feet of water frontage for lots, according to a University
of Wisconsin study based on data collected on 892 vacant lakefront properties
from 1986-1995. The study found that the zoning requirement, by preserving
clean water, natural scenic beauty and peace and quiet, generated an economic
gain that more than offset the economic loss resulting from the constraints
on development (Spalatro and Provencher. 2000).
An improvement of 3 feet in the depth of water clarity
would result in $11 to $200 more per foot of shoreline property value,
potentially generating millions of dollars in increased value per lake
according to a 5-year Maine study of 900
lakefront properties on 34 lakes. Likewise, declining water clarity accounted
for a 10 % to 20 % drop in selling price.
A 2003 Minnesota study used Minnesota lakes and
data to replicate the Maine research study. The implicit prices of water
quality were determined and calculations were made to illustrate the changes
in property prices on the Minnesota study lakes if a one-meter change
in water clarity (using Secchi disk readings) would occur. Expected property
price changes for these lakes are in the magnitude of tens of thousands
to millions of dollars.
The evidence shows that management of the quality
of lakes is important to maintaining the natural and economic assets of
this region.
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