Reservoir Sedimentation and Property Values

This thesis uses multiple regression analysis in the determination of two hedonic models to explain the impact that sedimentation and algal bloom events may have on property values along Lake Greenwood, SC. Utilizing different independent variables, the hedonic equations reflect the market value and the sales price of the selected lakeside properties. With an average 4.6 percent of the original lake area lost to accreted sediment, the models show a $7,800 to nearly $10,000 average loss in property value or an estimated $5 to $6 million in value lost within the study area. Properties sold within a two-year period following the major algal bloom event that occurred in 1999 are found to have sold for approximately $22,000 less than they would have during any other period. This equates to a loss of over $1.6 million among the parcels sold during this period.