HOW MUCH ARE MAINE LAKES WORTH?
We urge you to read this informative article because we value your membership in TLIA. If you’re not yet a member, please join and become an active participant in preserving and protecting Tripp Lake.
(reprinted in part from COLA Publication, Spring 1998, Roy Bouchard,, Maine DEP)
Surely, our 6000 scenic lakes are as woven into Maine’s quality of life as they are into the landscape. One way to look at a part of this value is to estimate lakes’ importance in our economy. Maine’s lakes are the cleanest and least crowded in the eastern U.S. and 40 million people live within a day’s drive of them. The economic importance of our lakes exceeds the lure of tourist dollars, however. Clean lakes increase lakeshore property values, contribute to the economic status of entire communities, provide lower cost drinking water and offer intrinsic, aesthetic value for recreation. Defining the value of lakes allows us to put the risk of degrading water quality and the cost of protecting our lakes into perspective.
A report summarizing this was done by Dr. Kevin Boyle, Jennifer Schetitz and Dr. Jeffrey Kahl ("Great Ponds Play and Integral Part in Maine’s Economy"—Jan. 1997).It looks into how much use our lakes get and how that translates into economic value. Direct expenditures such as gas, fishing tackle and food gives rise to money being re-spent within communities, creating additional sales, income and jobs. A net economic value is the difference between what people are willing to pay to use lakes and what they actually spend. Peoples’ satisfaction with their lake experience and the total value they place on the use, its high economic value, is what draws nonresident users to Maine but also is a measure of enjoyment and pride Maine people take in their lakes. If water quality worsened, the enjoyment to these folks and the economic activity it creates, would be reduced. Improving water quality would have an opposite effect. The net economic value is the barometer that tells us what’s happening to the quality of Maine’s lakes.
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Each year recreation on Maine’s lakes accounts for nearly 13 million days of use and generates about $1.1 billion. As this money is spent within the economy, it builds additional income and jobs for Maine residents. About $630 million in economic activity is due to this "multiplier effect", adding to annual personal income and supporting over 50,000 jobs. |
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Lake-front property owners contribute to economic activity through the taxes they pay and investments they make in their properties. These total $349 million annually, with 24% coming from nonresident property owners.
People value clean water a lot. Economic research has established a link between poor water quality and decreased direct/indirect sales. The major threat to our lakes is loss of water quality due to algae growth. This is caused by increased phosphorus from watershed land uses. Water clarity less than 10 ft. is less than ideal for recreation. Significant improvement of lakes with poor water clarity could increase recreation use overall.
However, the relative effects of lowering water quality are greater than for improving quality. Failure to protect Maine’s lakes would result in great losses. Restoration of water quality is prohibitively expensive and technically difficult to achieve. Because of land use changes and development in watersheds, losses in water quality are far more likely than improvements. Thus, community and state actions to protect high water quality and avoid economic loss can have a significant payoff.
What does this mean to you? How much of your town’s tax base relies on the value of lakefront property? If you own lakeshore property, how important is good water quality to your investment? How important is clean, clear water to your enjoyment of fishing and swimming? How dependent are local jobs and businesses on a reputation for a good, clean lake?
These are core issues for the future of Maine’s quality of life because they affect you and your community. Clean water means a better life for all of us. Fortunately, there are things that you can do to preserve the value of you lakes. Treat your own property right to protect the lake. Join and promote activities by your local lake association. Prompt actions by your town government to deal with future development. For more information, contact Maine DEP at 207-287-3901.
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