Applying Environmental Valuation Techniques to Historic Buildings, Monuments and Artifacts
Edited by Ståle Navrud and Richard C. Ready
Navrud 01 chaps 3/4/02 11:55 am Page 10 2. Methods for valuing cultural heritage Richard C. Ready and Ståle Navrud In this chapter, we review various non-market valuation techniques that can be used to estimate a monetary value for cultural heritage goods. The literature on these techniques is vast, and growing quickly.1 We cannot hope to provide a complete review of the latest methodological advancements. Instead, we have two objectives in this chapter. First, we hope to introduce non-economists to these techniques, providing sufficient background for them to understand the case studies presented later in the book. Second, we hope to point out the unique challenges and opportunities involved in applying these techniques to the valuation of cultural heritage goods. WHAT IS VALUE? Before we can begin to measure the value of a good, any good, we must first decide what we mean by the concept “value”. Here, we take a very neoclassical economic perspective. Within that perspective, the “value” of a good is defined as either (1) the amount of money the potential consumer would be willing to pay to get the good (willingness to pay, WTP), or (2) the amount of money the owner of the good would have to be paid in order to induce him or her to part with it (willingness to accept, WTA).2 In the case of goods that are traded in markets, consumers can compare their own value for the good (their WTP) with the market price, and decide whether...
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