Table 4.1. Value of Lake Surface, Shoreline, and Conservation Preservation of Land and 

 Shoreline, Based on Maximizing Net Benefits, Ashuelot River Basin 



Acre value of conservation reserve land in rounded numbers: 



Per-acre value in dollars 



At 5% 15,000 



At 7% 10,600 



At 10% 7,500 



Maximized net benefits = REVOWAT 



deep, the legally defined depth of the recreation area surrounding a lake. The 

 implied price for conservation reserve can be viewed two ways: (1) the cost of 

 maintaining undeveloped area around a lake in terms of price per acre and (2) 

 the cost of lakeshore land in price per acre. A per-acre value was developed and 

 is found in footnote 1 of Table 4.1. Although the prime factor in value of lots 

 is length of shore frontage, the per-acre value at the 5-percent and 7-percent 

 level of $15,000 and $10,000 tends to approximate the per-acre value of lots 

 currently being sold on medium-size lakes. The $15,000 figure represents a 

 sizable penalty for private land-owners for holding such land. 



In comparing the imphcit prices of shoreHne taken separately and shoreline 

 with a lot 1,000 feet deep, we found that in general three-fourths of the value 

 was attributable to the shoreUne alone. 



The above analysis is based upon optimizing net benefits (gross benefits less 

 public and private costs of providing potable water, and providing for waste- 

 water disposal). The same information was determined for maximizing gross 

 benefits. The results are presented in Table 4.2. No differences between net 



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