Validating estimates of the economic value of shoreline restoration for Muskegon Lake, Michigan

Session: Linking Human Well-being, Quality of Life, and Ecosystem Services to Conservation Efforts (2)

Erik Nordman, Grand Valley State University, [email protected]
Paul Isely, Grand Valley State University, [email protected]

Abstract

Muskegon Lake, a drowned river-mouth system that drains directly to Lake Michigan, is impaired by degraded water quality and habitat. Muskegon Lake’s condition is improving as remediation progresses, including the softening of 3 km of hardened shoreline. Shoreline softening cost $10 million in 2009. An initial 2009 study forecast the economic value of remediation, including effects on home sale prices and recreation opportunities. We revisited this estimate again in 2018 to see if the forward-looking components of the initial study held true for the first decade. The updated housing price hedonic model estimated an increase of $7.4 million compared to the initial forecast of $11.9 million. The smaller value was a result of other remediation efforts and amenity changes in Muskegon. The updated travel cost model estimated that the lake’s recreation value increased by $131 million compared to the initial forecast of $38.1 million. The difference is due in part to a higher population and a three-fold increase in the number of lake visits compared to the initial estimate. The paper explores the efficacy of forecasting the value change for environmental remediation