Table 4.2. Value of Lake Surface, Shoreline, 

 Based on Maximizing Gross Benefits, 



and Conservation Preservation of Land, 

 Ashuelot River Basin 



Lake surface 

 (per acre) 



Shoreline 

 (linear foot) 



Conservation Reserve 

 one foot shoreline 

 by 1,000 feet deep 



Item 



Basin 

 and 

 Northern other 

 area areas 



Basin Basin 



and and 



Northern other Northern other 



area areas area areas 



Value as indicated by 

 shadow price: 

 for August 



For three-month season 



Discounted into perpetuity: 

 At 5 percent 



At 7 percent 



At 10 percent 



1.40' 

 4.20 



2.45' 

 7.35 



85.00 147.00 

 60.00 105.00 

 42.00 73.00 



Dollars 



4.20' 



126.00 



4.20' 



12.60 12.60 



6.05 

 18.15 



6.05 

 18.15 



252.00 252.00 363.00^ 363.00^ 

 180.00 180.00 259.00^ 259.00^ 



126.00 181.00^ 181.00^ 



'SameasREVOWAT 



'Acre value in rounded numbers: 



Per-acre value in dollars 

 At 5% 15,800 

 At 7% 11,300 

 At 10% 7,900 



benefits and gross benefits were found for lake surface and shoreline length. 

 However, for the conservation reserve, the monthly value increased from $5.75 

 to $6.05 per unit. 



4.4 Implicit Values for Lake Shore Cottages 



Vacation homes or cottages currently located on lakes were not good com- 

 petitors with other recreational uses of lake resources. Actual prices ranged 

 from $10,800 to $19,000 depending on size of lot, length of shore frontage, 

 and boat use (see Table 4.3). The cottage with 50 feet of shorehne and one-half 

 acre of land was the only type in optimal allocation, and then only at current or 

 minimum levels. When gross benefits (PRITOT) were maximized, the shadow 

 price was positive at $149 for the northern area and $154 for the other areas and 

 the basin. This indicated that the requirement of having cottages in the analysis 

 resulted in a net loss of $149 for the marginal unit in the northern area. Further 

 analysis indicated that no cottages would be found on lakes if this minimum 



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