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Estimating the Public Good Value of Preserving a Local Historic Landmark: The Role of Non-substitutability and Citizen Information

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  • Robert W. Kling

    (Department of Economics, Colorado State University, Campus Box 1771, Fort Collins, Colorado 80523-1771, USA, robert.kling@colostate.edu)

  • Charles F. Revier

    (Department of Economics, Colorado State University, Campus Box 1771, Fort Collins, Colorado 80523-1771, USA, charles.revier@colostate.edu)

  • Karin Sable

    (Department of Economics, University of Puget Sound, 1500 N. Warner St, Tacoma, Washington 98416 USA, ksable@ups.edu)

Abstract

This study applies stated-preference methods to estimate the public good values of preservation and restoration of a local historic landmark in a medium-sized US city. The survey device centres on a referendum-style dichotomous-choice question regarding city participation in a restoration partnership. Use of a double-split sample allows analysis of the effect on valuation of both heritage information and willingness-to-pay versus willingness-to-accept constructs, where the latter is approached by the method of paired comparison, allowing a non-substitutability effect to be separated from any endowment effect. Econometric analysis using a standard binary logit model indicates the existence of a strong non-substitutability effect and a significant information effect that further suggests the importance of non-substitutability in valuation.

Suggested Citation

  • Robert W. Kling & Charles F. Revier & Karin Sable, 2004. "Estimating the Public Good Value of Preserving a Local Historic Landmark: The Role of Non-substitutability and Citizen Information," Urban Studies, Urban Studies Journal Limited, vol. 41(10), pages 2025-2041, September.
    • Handle: RePEc:sae:urbstu:v:41:y:2004:i:10:p:2025-2041
    DOI: 10.1080/0042098042000256369
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    1. Alberini, Anna & Longo, Alberto, 2007. "Valuing the Cultural Monuments of Armenia: Bayesian Updating of Prior Beliefs in Contingent Valuation," Sustainability Indicators and Environmental Valuation Working Papers 9337, Fondazione Eni Enrico Mattei (FEEM).
    2. Douglas S. Noonan, 2013. "Market effects of historic preservation," Chapters, in: Ilde Rizzo & Anna Mignosa (ed.), Handbook on the Economics of Cultural Heritage, chapter 17, pages i-i, Edward Elgar Publishing.
    3. Armbrecht, John, 2014. "Use value of cultural experiences: A comparison of contingent valuation and travel cost," Tourism Management, Elsevier, vol. 42(C), pages 141-148.
    4. 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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