Putting a Value on Priceless Natural Resources: A Look at Research on the Economics of Maine’s Lakes

The preservation of the more than 6,000 lakes that grace Maine’s landscape has been one of our core priorities since we founded the Onion Foundation in 2014. Like so many others, we recognize the benefits that these freshwater resources bring to people, communities, and wildlife, and we’re proud to support numerous nonprofits working to keep these water sources clean and accessible.

Recent research from the University of Maine has provided us and other lake advocates across the state with data on an often overlooked perspective on the value of freshwater sources: the economic impact.

Following up on a similar report from 1997, “Valuing the Economic Benefits of Maine’s Great Ponds in the 21st Century” offers important fiscal data to inform research, advocacy, and policy decisions today. Here’s an in-depth look at the critical takeaways from this vital research as well as three organizations making considerable strides to protect the state’s lakes.

About the Report

When presented with the opportunity to update the formative 1997 research, lead researcher Dr. Adam Daigneault — the Director of the School of Forest Resources at the University of Maine (UME) — immediately recognized the project’s utility: “Ever since [1997], people have used the study as justification for why we need to invest in various aspects of lake management,” he says. “But how relevant is that data now? Is it appropriate to keep citing numbers from the ‘90s?”

Dr. Daigneault was invited to the lakes project by Susan Gallo, Executive Director at Maine Lakes, after he gave a talk on the economics of forest conservation and water quality in Sebago Lake. Together, Gallo and Dr. Daigneault secured funding and assembled a team of dedicated researchers, including:

• Dr. Keith Evans, a UME professor who led statistical analyses of environmental economics

• Dr. Jianheng Zhao, a postdoctoral researcher at UME who helped analyze the data

• Melissa Genoter, a UME undergraduate student who served as a key research assistant

• Linda Bacon, a Maine Department of Environmental Protection (DEP) State Limnologist who compiled information on water quality

The Intersection of Quantitative and Qualitative Data

The team set out to identify the crossroads between quantitative findings and social impacts. “It was an interesting academic exercise, but all my work has always been really applied, so I was super interested to see how this could have an effect on the real world,” says Dr. Daigneault.

This methodological approach was also inspired by Genoter, whose firsthand experience working with lake associations fueled a passion for applied environmental science, which she brought to the project for nearly three years.

To put this approach to work, the team employed a mixed-method research design that included:

• Travel cost modeling

• 768 resident and visitor surveys

• Expenditure analysis

• Recreational price analysis

• Census data analysis

“We tried to think about how we can quantify the benefits of various ecosystem services,” says Dr. Daigneault. “How can we create monetary terms for the data we’re finding? What does that mean to the typical person in terms of what value they might get out of these resources?”

Key Insights From the Report

To find the answers to these guiding questions and make the data as usable as possible, the team ensured fidelity to the original research design. “We did our best to replicate the methods and focus on the same subsectors of Maine lakes as the original report to be as consistent as possible,” Dr. Daigneault says.

This approach helped increase the validity of new findings and gave advocates, policymakers, and other key stakeholders helpful comparisons that show how the economic impact of Maine’s lakes has evolved over time.

Overarching Economic Impact

According to the report, the total net economic value of Maine’s lakes is a staggering $14.2 billion — up from $11 billion in 1997. But this value extends beyond total financial impact: lakes across the state bring in around $2.1 billion annually in direct sales, the report found. The data also showed that a mere one-foot increase in water clarity correlates with a 1.1% increase in property values.

The inverse is also true, as the research found that even a moderate decline in water quality costs the state nearly $33 million per year. In addition to supporting the link between water quality and economic impact, this data also provides compelling evidence for increasing conservation efforts to respond to various challenges affecting Maine’s lakes. As the report indicates, those challenges include stormwater runoff, algae growth, habitat degradation, the spread of invasive species, and mounting pressures from climate change.

Lake Usage Across the State

The qualitative survey data the team collected offers keen insights into why the economic value of Maine’s lakes is so high. As Dr. Daigneault says, “It turns out a lot of Mainers are using lakes and many are going more than once.” In fact, 77% of the 768 residents surveyed visited lakes between 2022 and 2023, and 92% want to visit even more in the coming years.

More than two-thirds of respondents (78%) also rated the general water quality of Maine’s lakes as good or very good, revealing a strong alignment with what the data shows, according to Dr. Daigneault.

What’s powerful about this data is that the team made a concerted effort to collect as many perspectives as possible. Nearly three quarters (74%) of surveyees don’t own a house or camp directly on water, but rather use public access points to engage with lakes. “A lot of the utility we got out of this study was in the general population survey,” says Dr. Daigneault. “We tried to get it to a broad population, not just the people who live on or use lakes.”

In doing so, the team was able to gain a more holistic and accurate understanding of how Mainers perceive and use lakes. The top usages include:

• Lakefront properties, which account for $13 billion in net economic value

• Recreation, such as boating, fishing, swimming, or hunting, which accounts for $501 million

• Water consumption across 45 water districts, which accounts for $334 million

• Summer youth camps, which serve around 48,000 campers per year and account for $15 million

Barriers to Lake Access

While the report’s data indicates a greater overall economic value for Maine’s lakes, as compared to the 1997 report, it also highlights key barriers that impede access to these natural resources — both economic and otherwise.

One of the biggest impediments the report identified is rising property costs: Lakefront property prices have increased by 14% since 2019, outpacing inflation and making it difficult for many Mainers to purchase new lakefront land or homes.

Residents and visitors who access lakes recreationally spend an average of $112 per day trip on expenses including food, supplies, fuel, and equipment rentals.

Put simply: These are costs not everyone can afford.

Survey respondents identified that having more tools for finding and using public access points — including online maps with marked points, improved parking areas that enable access, and more public access closer to their homes — would help them use these natural resources affordably.

Currently, those tools aren’t as widely accessible as residents would like, the report found. “A lot of places don’t have public access points, so it’s not that easy to do other activities around those lakes,” says Dr. Daigneault. “People know how to get to certain lakes, but they often have to get across private property or be in the know to actually access them.”

Researchers also identified three primary groups that are disproportionately underserved by lakes: people with disabilities, seniors, and people living in urban areas. In addition to high travel costs and a lack of public access that most Mainers face across the state, these underserved populations also often contend with personal health issues that impede their ability to access lakes.

3 Organizations at the Forefront of Lake Conservation

Since its publication in April 2024, the report has already revitalized conversations around environmental protection in Maine. In July, for example, Governor Janet Mills referenced the report in her address for Lakes Appreciation Month, and several lake protection organizations have expressed enthusiasm for the possibilities the research affords.

While the report serves as a catalyst to promote policy decisions, it’s also an advocacy tool for organizations like the Onion Foundation. By documenting the value of lakes, the research helps us develop a keener awareness of the benefits lakes provide to our collective well-being and economy.

And it helps us hone our Environment Program to support more organizations in building their capacity, protecting freshwater sources, and expanding lake access. Here are three such organizations that are leading this work for Maine.

1. Maine Lakes

For more than 53 years, Maine Lakes has been leading advocacy efforts aimed at protecting our state’s freshwater sources. The team collaborates with businesses, state agencies, municipalities, and policy makers to help drive conservation-focused bills.

On top of their advocacy work, Maine Lakes also runs several statewide programs to educate residents on the importance of keeping lakes clean. The LakeSmart program, for example, is a free initiative designed to educate and reward lakefront property owners who work to keep pollutants from stormwater out of their lakes.

The organization also serves as the primary membership hub for lake associations in Maine, comprising more than 100 lake association members that partner to keep lakes healthy throughout the state. Offering educational videos, a handbook for lake protection, interactive workshops, and more, Maine Lakes is helping drive environmental protection in Maine.

2. Lake Stewards of Maine

The report found that invasive species are one of the leading causes of shifting lake ecosystems in Maine, and also highlighted the significant impact of declining water quality on their economic value. But thanks to organizations like Lake Stewards of Maine, residents are learning how to address both of these concerns.

Founded in 1971, the organization trains more than 1,200 active volunteers to monitor invasive species, water quality, and lake health across 525 lakes. In these free trainings, community members learn to conduct water-quality surveys, track bacteria, and watch for invasive aquatic plants in their assigned lakes.

After volunteers collect data on the lakes in their charge, they send that information back to Lake Stewards of Maine, whose team analyzes and organizes insights alongside data analysts from the Maine Department of Environmental Protection. This work helps inform lake advocacy and science initiatives across lake protection organizations and supports an index of publicly accessible lake data for Maine communities.

Lake Stewards of Maine also runs regular workshops on relevant topics, such as climate change, plant identification, and watershed assessment, giving community members the tools they need to keep Maine’s lakes healthy.

3. Lakes Environmental Association

Similarly, the Lakes Environmental Association educates volunteers, training them to inspect boats and help protect lakes against harmful human behaviors. Since 1970, the organization has offered public workshops and programs for waterfront property owners, while advocating for protective policies at the local, state, and federal levels.

This regional association also monitors lakes year-round, employing tools and experts from its Science Center to collaborate with researchers to understand threats to clean lakes. Through a longstanding partnership with the state, the Lakes Environmental Association manages a free Courtesy Boat Inspection training program through which participants learn to inspect boats for plant fragments, educate boaters on proper pre- and post-launch draining and inspection, and serve as ambassadors for lake protection at boat launches.

On top of these in-depth training programs and resource offerings, the organization also hosts an annual Maine Summit on Invasive Aquatic Species, which connects lake associations, watershed advocates, and state agencies to learn about current lake needs and find ways to collectively manage invasive species.

These three organizations — and so many others across the state — are providing the advocacy and hands-on work to preserve the natural resources that so many Mainers love. As the report notes, challenges like climate change, erosion, invasive species, and harmful algal blooms are impacting not only the quality and usability of Maine’s lakes, but also the economic value of these resources. By collecting much-needed data, educating community members, and collaborating to impact legislation, these organizations are helping strengthen both conservation efforts and Maine’s economy. As Dr. Daigneault puts it: “The more that you can bring to the table with metrics that can be weighed, the more you can advance the conversation.”