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Valuing the cultural monuments of Armenia: Bayesian updating of prior beliefs in contingent valuation

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  • Anna Alberini
  • Alberto Longo

Abstract

The most appropriate way to measure the social benefits of conserving built cultural heritage sites is to ask the beneficiaries of conservation interventions how much they would be willing to pay for them. We use contingent valuation—a survey-based approach that elicits willingness to pay (WTP) directly from individuals—to estimate the benefits of a nationwide conservation of built cultural heritage sites in Armenia. The survey was administered to Armenian nationals living in Armenia, and obtained extensive information about the respondents’ perceptions of the current state of conservation of monuments in Armenia, described the current situation, presented a hypothetical conservation program, elicited WTP for it, and queried individuals about what they thought would happen to monument sites in the absence of the government conservation program. We posit that respondents combined the information about the fate of monuments provided by the questionnaire with their prior beliefs, and that WTP for the good, or program, is likely to be affected by these updated beliefs. We propose a Bayesian updating model of prior beliefs, and empirically implement it with the data from our survey. We found that uncertainty about what would happen to monuments in the absence of the program results in lower WTP amounts.

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  • Anna Alberini & Alberto Longo, 2009. "Valuing the cultural monuments of Armenia: Bayesian updating of prior beliefs in contingent valuation," Environment and Planning A, Pion Ltd, London, vol. 41(2), pages 441-460, February.
  • Handle: RePEc:pio:envira:v:41:y:2009:i:2:p:441-460
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    Cited by:

    1. Turner, Robert & Willmarth, Blake, 2014. "Valuation of Cultural and Natural Resources in North Cascades National Park: Results from a Tournament-Style Contingent Choice Survey," Working Papers 2014-01, Department of Economics, Colgate University, revised 23 Jan 2014.
    2. Andrea Leiter & Gerald Pruckner, 2009. "Proportionality of Willingness to Pay to Small Changes in Risk: The Impact of Attitudinal Factors in Scope Tests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 169-186, February.
    3. Mirko Moro & Karen Mayor & Seán Lyons & Richard S J Tol, 2013. "Does the Housing Market Reflect Cultural Heritage? A Case Study of Greater Dublin," Environment and Planning A, , vol. 45(12), pages 2884-2903, December.
    4. Liao, Shu-Yi & Tseng, Wei-Chun & Chen, Chi-Chung, 2010. "Eliciting public preference for nuclear energy against the backdrop of global warming," Energy Policy, Elsevier, vol. 38(11), pages 7054-7069, November.
    5. repec:eee:eneeco:v:63:y:2017:i:c:p:253-260 is not listed on IDEAS
    6. Katuwal, Hari & Venn, Tyron J. & Paveglio, Travis & Prato, Tony, 2015. "Effects of Information Framing and Information Seeking Behavior on Willingness-to-pay for a Wildfire Management Program," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205645, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    7. Longo, Alberto & Boeri, Marco, 2014. "Information, Random Regret Minimisation, Random Utility Maximisation: Willingness to pay for Renewable Energy," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182670, European Association of Agricultural Economists.
    8. Wright, William C.C. & Eppink, Florian V., 2016. "Drivers of heritage value: A meta-analysis of monetary valuation studies of cultural heritage," Ecological Economics, Elsevier, vol. 130(C), pages 277-284.

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    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General

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