FACTORS INFLUENCING LAKE ASSOCIATION FORMATION IN MAINE

Physical properties of lakes create market failures and contribute to management challenges. Lakes valued as scenery or part of an ecosystem could be considered a public good, while lakes used for drinking water or recreational resources could be considered a common pool resource (CPR), as would fisheries and the properties of remoteness and solitude found at lakes. Theory suggests that organizations and institutions can help reduce correct these market failures. A tradition of small local level associations centered around lakes has emerged in Maine to attempt to solve the management problems related to CPR/public goods. These groups could be called road associations, camp/ property owners' associations, lake associations or watershed associations. The objectives of these groups vary from narrow, with road associations focusing on private road maintenance, to more broad with watershed organizations expanding their view to an entire watershed to protect the lake's water quality. Similar groups also provide a voice to seasonal property owners and work as lobbying groups to maintain the character of a lake. This research examines what factors encourage the formation of lake associations in Maine through the use of binary logit regression. Factors influencing the costs and benefits organization formation as well as properties of the lake and surrounding communities are included. Lake associations can spread information efficiently and allow members to be more certain about their neighbors' values. The costs of programs (invasive species prevention, erosion control, etc.) can be spread through out the community. Informal constraints are locally based and make up the majority of lake associations' institutions. Implications for the social and ecological sustainability of lakes will be discussed with a focus on recommended actions to support lake management in Maine.