Comparing cultural heritage values in South East Asia – Possibilities and difficulties in cross-country transfers of economic values

Benefit transfer refers to the transfer of economic values from a primary valuation study (study site) to a site where we need to conduct policy analysis (policy site). Due to the considerable costs and time required to conduct primary valuation studies, using benefit transfers to estimate the values for sites not yet valued is likely to attract policy interest. While benefit transfer is being increasingly applied in studies on environmental goods, its application in the field of cultural heritage resources is rare. The unique nature of these public goods, and differences in the size and demographic characteristics of the affected populations lead to a significant risk of benefit transfer providing irrelevant estimates for cultural heritage. In this study, we compared the results of two contingent valuation (CV) studies involving historic temples in Thailand and Vietnam, tested the validity and reliability of benefit transfers between the two sites, and explored the possibilities and difficulties in such transfers. We found that the error in transferring unadjusted mean willingness-to-pay (WTP) ranged from 46% to 129%. Adjustments for differences in purchasing power parity (PPP), income level and income elasticity between the sites substantially increased rather than decreased transfer errors in many instances. Function transfers did not perform better than unadjusted unit transfers. These results suggest that there are other important factors – possibly physical, cultural and institutional variables – that need to be taken into account in explaining the differences in WTP for cultural heritage aside from the usual income and socio-economic variables captured in CV studies. Until we are able to identify these other factors and measure their impacts, the potential policy use of benefit transfer in the case of cultural heritage goods remains limited.     

Using contingent valuation and cost-benefit analysis to design a policy for restoring cultural heritage

Historical heritage is proving an ideal field to apply contingent valuation for estimating individual as well as collective preferences as goods tend to be non-market and publicly owned. Yet despite this, findings are seldom used to draw up cultural policies or assess cultural heritage related projects. The current paper thus posits an approach which merges contingent valuation and cost-benefit analysis to design a cultural policy aimed at restoring the urban cultural heritage of the city of Valdivia (Chile). Contingent valuation is used to estimate the expected benefits from heritage for both local residents and tourists visiting Valdivia. We then apply cost-benefit analysis to the findings to evaluate a project to restore the historical ensemble through a non-profit foundation. The originality of the proposal lies in its merging the two approaches and may prove appealing to developing countries in which much of the heritage has been neglected and left to deteriorate, and where few or no resources have been devoted and a lack of effective institutional schemes to address the situation is evident.     

The Double Public Good: A Conceptual Framework for ``Shared Experience' Values Associated with Heritage Conservation

This paper introduces the double public good model as a representation of the simultaneous externalities that complicate decision making in the cultural heritage sphere. Social welfare is modeled as depending on both public and private benefits of households' production of individual heritage experience, which in turn depends on the stock of historic assets (a public good) and access effort (a private good). The public benefit of private experience arises from ``shared experience' that fosters cultural identity and social understandings. The model generates marginal efficiency conditions for the amount of physical preservation, amount of access, and intensity of access. The model highlights the need for dual-level policy making in order to avoid unbalanced heritage preservation efforts that have been of some concern in the literature.     

Determination of the impregnation depth of siloxanes and ethylsilicates in porous material by neutron radiography

For conservation of the built cultural heritage, the application of conservation products like consolidants or water repellents is often suggested. Their impregnation depth is a key factor for the assessment of the treatment efficiency. It will vary depending on the internal structure of the stone material and the properties of the conservation products. In this study a porous bioclastic limestone from Maastricht (the Netherlands) and a porous sandstone of Bray (Belgium) were selected for treatment with either ethylsilicate-based consolidant products or siloxane-based water repellents. We explore the potential of neutron radiography to visualize the conservation products after polymerization, since previous experiments already proved their detectability before polymerization. Additionally, water absorption by capillarity was monitored inside the samples. The experiments in this study illustrate that the ethylsilicate-based consolidants remained visible for neutrons even after the polymerization process, while the siloxane-based water repellents can only clearly be distinguished in the stone as long as they contain a certain amount of solvent. The study proves that neutron radiography can provide important additional information for the research in the built cultural heritage domain, especially as it allows to successfully visualize the impregnation depth of silicate-based consolidants inside natural building stones.     

Local government allocation of cultural services

In the present paper, we analyse the allocation process for cultural services in Norwegian municipalities. The cultural sector at this administrative level is decomposed into the following eight subcategories: children’s and youth activities, libraries, cinemas, museums, arts dissemination, cultural heritage, cultural schools, and other cultural services. By means of budget shares for these eight cultural services and a residual sector consisting of all other municipal services, we estimate a system of demand relations which are interdependently linked to each other by a budget restriction. Our analyses are based on data from 409 out of 429 Norwegian municipalities during the period 2002–2010. In the empirical analyses, we mainly focus on the effects of income variation for the cultural services. We estimate effects of free income, matching grants to each sector, and user fees and other sector-specific income for each sector. We also estimate crowding-out effects for the cultural sectors of demographic variables indicating higher demand for services such as education, childcare, and health services. Our results confirm previous results. There are interesting differences within the group of cultural services, and these are partly related to different levels of national standardisation and regulation among the cultural services.     

Valuing museums as economic engines: Willingness to pay or discounting of cash-flows?

GLobal Art MUseums as Economic Re-activators (GLAMUR) infrastructures are characterized by global media visibility and sheer presence in the communications environment; outstanding architecture by a superstar architect; big blockbuster exhibitions and a large number of visitors; being magnets for tourists; requiring large capital costs (initial construction costs plus ongoing investments) and large operating budgets; expensive advertising and commercialisation strategies; a huge operative risk; and a hope for substantial impact on the local economy. The economic value of cultural assets is defined as the extent to which they generate benefits for society. The aim of this article is to shed light on the valuation of GLAMUR infrastructures and why, and then to valuate the Guggenheim Museum Bilbao (GMB). In fact, the author of this paper argues that economic valuation through an estimate of the Willingness to Pay (WTP) (e.g. contingent valuation), is clearly an insufficient method for valuating a GLAMUR. One possible accurate method could be to calculate the Discounting of Cash-flows (DCF), followed by the discounting of the WTP estimates.     

Travel purpose and expenditure patterns in city tourism: evidence from the Amsterdam Metropolitan Area

This study examines the expenditure patterns of urban tourists with different trip purposes including visiting cultural heritage. Expenditure categories include museums and theatres. We use a two-step approach, in which we first analyse the total daily amount of expenditure and then the budget shares of various categories. We make use of survey data collected for the Amsterdam Metropolitan Area, a large Western European city known for its rich cultural heritage and the semi-legalized use of cannabis. The econometric analysis shows that trip purposes are associated with substantial differences in total daily expenditure as well as on budget shares. However, the results also show that the activities undertaken by tourists are not limited to their (initial) trip purposes.     

Analysing the possible impact of landslides and avalanches on cultural heritage in Upper Svaneti,Georgia

In this paper, the threat posed to cultural heritage by landslides and avalanches is analysed for two communities (Ushguli and Mulakhi) in the Upper Svaneti region in Georgia. The vulnerability of 60 cultural heritage objects has been evaluated through a conservation calculation based on an existing methodology using a State of Conservation Index (SCIx), which served as an input in a Spatial Multicriteria Evaluation (SMCE). Factors that are considered important for the occurrence of landslides (slope, landcover, lithology and drainage density) and snow avalanches (slope, insolation, slope curvature and landcover) have been used to generate a susceptibility map. A qualitative risk assessment was carried out by combining susceptible areas and cultural heritage objects. As there were very limited historical data available on the occurrence of landslides and snow avalanches, a combination of local and expert knowledge has been used to extract information on both cultural heritage and natural hazards. Existing management plans were also analysed to evaluate how natural hazards could be incorporated. Finally, some recommendations are given related to the analysis of the impact of natural hazards on cultural heritage in Georgia.     

‘Then you are making riskless money’: a critical discourse analysis of credit default swap coverage in the financial trade press

Recently, scholars begun to urge an approach to the study of finance that interrogates the accepted wisdom of financial models and practices by examining the forces of power behind their development. Drawing from the field of cultural studies, Hardin and Rottinghaus (in their 2015 article, “Introducing a cultural approach to technology in financial markets”) advocate for a cultural studies of finance, which emphasizes the critical consideration of the co-constructive nature of financial technologies and cultures. This paper builds off that provocation using the concept of ‘rhetorical closure’ (as described by Pinch and Bijker in 2012) to explore how industry media aimed at derivatives developers, traders, and investment bankers worked to define the meanings of new financial technologies. Using critical discourse analysis, this study examines how credit default swaps (CDSs) were presented in the financial industry media in the years 1995–2007, and how this framing contributed to the politics of these artifacts. It finds that the financial industry media produced a discourse about CDSs using multiple overlapping frames that overgeneralized the success of CDSs from narrowly specific evidence and applied constant competitive pressure to adopt new financial technologies. These discourses implicitly encouraged the rapid adoption and broad application of CDSs, thus helping to (re)produce a financial culture in which self-interest and short-term gains were prioritized.     

Using Stated-Preference Questions to Investigate Variations in Willingness to Pay for Preserving Marble Monuments: Classic Heterogeneity, Random Parameters, and Mixture Models

This paper investigates heterogeneity in the preferences/WTP (willingness to pay) to preserve marble monuments in Washington, D.C. This is done in the context of three different discrete-choice random-utility models. The main focus is to estimate a mixture model of choices over preservation programs. This model captures the best features of random-parameters models and models that assume preference parameters are deterministic functions of observable characteristics of the individual. The mixture model, and it alone, predicts that increased preservation is a bad for a significant proportion of young, non-Caucasians. That some proportion of the population might consider preservation a bad is a contingency that should be planned for in efforts to value cultural resources. Data and computer code are available athttp://www.colorado.edu/economics/morey/dataset.html.     

The coastal cultural heritage facing coastal management

This paper is concerned with the role of cultural heritage in coastal areas, including land belts and coastal marine waters in the prospect of operating sustainable development-aimed strategies. It is a part of the investigations carried out in the framework of the Progetto Finalizzato Beni Culturali (Special Project Safeguard of Cultural Heritage) convened by the Consiglio Nazionale delle Ricerche (CNR, the Italian National Research Council). Essentially, it aims at contributing to the discussion on how the mise-en-valeur of the coastal cultural heritage may be framed within integrated coastal management programmes. In this view, the discourse on the coastal cultural heritage runs along this pathway: (i) global (climatic) change and globalisation are assumed to be the key components of the external environment with which the coastal area interacts; (ii) the conceptual framework of coastal management, as it can be deduced by the background guidelines from Agenda 21 (United Nations Conference on Environment and Development, UNCED), is considered; (iii) the legal framework, which the coastal area is characterised by, is taken into account by focusing on its implications on the management patterns. At this point, attention is concentrated on the role of cultural heritage in the framework of integrated coastal management approaches. It is considered, how this pivotal component of the coastal area has been dealt with bythe intergovernmental organisations. Special consideration is attributed to the European Code of Conduct for Coastal Management Zones, since it considers the ecological patrimony and cultural heritage as giving shape to a unique ethically-endowed reality, which materialised through landscapes and seascapes. The final step consists of the design of a tentative Code of Conduct for Coastal Cultural Heritage consisting of some background and operational principles.     

Economic impacts of cultural heritage – Research and perspectives

Investment in cultural heritage (and other forms of culture) are often claimed to be beneficial for a local economy, not only in terms of cultural consumption, but also in the form of increased employment and income. This article addresses some methodological questions regarding economic impact studies of investments in cultural heritage projects. Different types of direct and indirect impacts are being discussed, especially how these can be calculated. We also give a short overview over some studies of economic impact of different cultural and/or tourism activities, and the pros and cons of these studies. In a study of the Norwegian town of Røros, we find that tourism related to the cultural heritages in the region contribute some 7 per cent to overall employment and income.     

Valuing historic battlefields: an application of the travel cost method to three American Civil War battlefields

This paper presents individual demand models for three historic battlefield sites maintained by the US National Park Service. Preserved battlefields are valuable cultural resources that make up a significant portion of the US National Park system, but have received scant attention from economists. The demand for trips is modeled as a count data process. Visitor data for these battlefields were collected on-site, so the models account for truncation in the observed number of trips and endogenous stratification. The travel cost method, which is seeing increasing application in cultural heritage research, is used to estimate the use value of each battlefield. The results indicate an average individual willingness to pay for a battlefield trip ranging from about $8–$25, depending on the site.     

A definition of cultural heritage: From the tangible to the intangible

The aim of this work is to analyse the evolution of the concept of cultural heritage in West European states. In the last decades of the 20th century, the term “heritage” was characterised by expansion and semantic transfer, resulting in a generalisation of the use of this word, frequently used in the place of another, such as, monument and cultural property. However, all these terms are not able to cover the same semantic field. Starting by the reflection on the semantic evolution of the notion of cultural heritage in France, we approach to the international definition of heritage given by the directives, charters and international resolutions in order to define a global outline of the meaning of heritage that is not just limited to a particular national dimension. From a purely normative approach, one went to a less restrictive approach, one based on the capacity of the object to arouse certain values that led the society in question to consider it as heritage and therefore, to a further step in which heritage is no longer defined on the basis of its material aspect. This development has also made it possible to recognise intangible cultural heritage, which was ignored for a long time, as heritage to be protected and safeguarded.     

Willingness to pay: how stable are the estimates?

The purpose of this paper is to examine the stability of WTP estimates when discrete choice models are applied in cultural valuation studies. This valuation technique has recently emerged and is expected to be more widely applied in cultural economics. However, little is known about whether or not WTP estimates that are derived using different functional forms and structures in the same valuation study are stable enough to be within an acceptable range. This paper tries to examine the stability of estimated WTP values when uncertainty remains in the selection of best choice models. A more careful selection of choice models might be needed to improve the valuation reliability.     

Travel Cost Analysis of a Cultural Heritage Site: The Case of Historic St. Mary's City of Maryland

Historic St. Mary's City located in rural southern Maryland, marks the 17th century British Colonial capital of the State of Maryland. As with most cultural heritage sites, Historic St. Mary's City can be classified as possessing public goods-type characteristics, and as such, welfare benefit estimates must utilize non-market valuation techniques. To date, the primary valuation methodology used for cultural heritage sites research involves stated preference methods. This study is one of the first to employ a revealed preference methodology, the zonal travel cost model, to estimate the consumer surplus welfare measures of a cultural heritage site. We analyze three years of visitor sample data to compare three functional forms of visitor demand. The average of the annual individual consumer surplus measures ranged from approximately $8.00 to $19.26, depending on the functional forms used. When aggregated to the total number of individual paid visitors, the average annual benefit estimates range from approximately $75,492 to $176,550.     

Integrity in UNESCO World Heritage Sites. A comparative study for rural landscapes

Since 2005, Outstanding Universal Value (OUV) is the standard by which United Nations Educational Scientific and Cultural Organization (UNESCO) evaluates world cultural heritage site suitability. The sites worthy of UNESCO preservation as well as the parameters used to demonstrate OUV are diverse. Our study focused on the uniquely distinguished rural landscape sites and the OUV parameter of integrity. Integrity however, is an elusive concept for which UNESCO provides no definitional protocol, and for which the scientific community objects to a static or pure historical interpretation. Given this, our work aims to analyse the concept of integrity and how it can be used to preserve the heritage of rural landscapes. After reviewing the UNESCO approach, we focused on the international scientific debate on the meaning and application of integrity. We designed and conducted a comparative study of UNESCO rural landscapes selected from the 2011 World Heritage List. Documents describing the historical, rural, and agro-ecological features of each of the fourteen rural sites were analysed. From this, several historical and ecological parameters were chosen as “values to have” and several socio-economic and management parameters were chosen as “values to maintain” to assess the integrity of each landscape. Our results found integrity to be a value of both cultural and natural landscapes and that it is key to site identity. We demonstrated that UNESCO assigns a high value to the following parameters: historical features, traditional crops and local products, land-use and agricultural practice permanence, and the presence of architecture related to agricultural activity. Finally, we found the relationship between culture and nature to characterize best the integrity of a rural landscape, rather than nature or culture alone.     

Measuring the efficiency of heritage institutions: A case study of a regional system of museums in Spain

Data Envelopment Analysis (DEA) is a widely applied tool in efficiency evaluation for public administration, yet has scarcely been put to use in the case of heritage institutions. The goal of the current paper is to evaluate the technical efficiency of a regional system of museums, the hypothesis being that these bodies represent one organization of productive resources (employment, equipment, art collections, and so on), aimed at providing various goods and services linked to their basic functions: conservation, exhibiting, research and dissemination of cultural heritage. Yet, given the diverse nature of this kind of institution, previous sorting and classification is required in order to obtain homogeneous clusters for the various elements. This research therefore merges multivariate statistical techniques to synthesise the initial information and DEA for efficiency evaluation. These findings may prove useful for management of these institutions, as well as for those responsible for public resource allocation policies in the area of cultural heritage. We apply this to a regional system of museums in Spain, which includes both rural and urban museums.     

Netflix: global hegemon or facilitator of frictionless digital trade?

Trade in cultural products has traditionally been constrained by a combination of law and technology. In Europe, digital sellers based in a given EU country are not always able to distribute across borders. In January 2016, US-based Netflix announced an expansion to 243 countries, accomplishing cross-border distribution through business strategy. Changes in law or technology that facilitate cross-national cultural trade have traditionally drawn the concern of observers worried about the cultural heritage—and products—of small markets. The expansion raises questions about what Netflix is doing. Is it a cultural hegemon, distributing US fare into 243 countries? Or it is a facilitator of free trade, making the products of even small countries more available outside their home markets (relative to traditional distribution)? And how does the curated model—which limits the number of movies the platform wants to distribute—affect Netflix’s function? To shed light on these questions, we develop a new measure of the global availability of a repertoire, the value-weighted geographic reach. Using this measure we find, first, that Netflix makes many of the works from a wide variety of countries available in many other countries. Second, we find that theatrical distribution strongly advantages US-origin fare. Third, the pattern of origin repertoire available through Netflix also favors the USA, although less overwhelmingly. Moreover, many countries are relatively advantaged by their Netflix availability patterns. Finally, we discuss some issues related to the Netflix platform, including horizontal competition with other platforms, vertical struggles with content providers (and its backward integration into production), and we speculate on possible challenges for regulators.     

The Returns to Picasso's Prints and to Traditional Financial Assets, 1977 to 1996

This paper updates prior work by Pesando (1993) regarding art as an investment. Using world-wide auction prices for Picasso prints for the period 1977 to 1996, this paper establishes that (1) a recovery in the art market did occur in the mid-1990s, but (2) the real rate of return on this segment of the art market remains low relative to its risk. Indeed, the real rate of return is beneath that provided by U.S. Treasury Bills.