ECONOMICS UNIQUENESS

HERITAGE ECONOMICS: A CONCEPTUAL FRAMEWORK ■ 71
urban heritage projects in developing countries, it would appear that a simple
data-gathering exercise such as this is capable of demonstrating with reasonable
confi dence whether a project has delivered some level of public-good benefi ts
and whether these benefi ts are positively valued in economic terms. Such an
approach is, of course, no substitute for a full-scale contingent valuation or choice
modeling study, should one be possible in particular situations.
Altogether this case study of the application of an ex post economic impact
evaluation to a Bank-fi nanced heritage investment project in a borrowing country
provides some quantitative evidence for the economic and cultural benefi ts
arising from investment in cultural capital assets in historic cities. Although a
full retrospective CBA was not possible because of data limitations, the indicators
assembled showed positive impacts on the economic circumstances of the local
businesses. A particular feature of this case study is its demonstration of the value
of cultural impacts of the investment, with apparently signifi cant non-market
benefi ts. It can be noted that the observable willingness to pay could be converted
into a tangible revenue stream for the municipal authorities or the national government
if a suitable means for benefi t capture could be found.
Conclusion
Th e aim of this chapter has been to draw together the principal strands of thinking
in the application of economic theory and analysis to issues in heritage conservation.
Th e fundamental concept of cultural capital as a means of representing
the economics of heritage provides a means both for interpreting the properties
of heritage as asset, and for identifying systematically the critical issues of valuation
that attend any heritage-related decision. Th e non-market benefi ts of such
assets are likely to be a signifi cant component of the economic impacts of investment
projects and should not be neglected in any evaluation. Much work remains
to be done to develop robust assessment methods that can integrate economic
and socio-cultural value into the appraisal of heritage investment projects such as
those fi nanced by the Bank in many parts of the developing world.
Nevertheless, the heritage valuation process in most countries is dealt with and
circumscribed within the public policy realm. Societal agreement is of paramount
importance in the identifi cation and classifi cation of cultural heritage assets to be
preserved through the listing process and special administrative regulations. Tangible
cultural heritage policies, regulation, and incentive instruments are meant
to safeguard and protect the integrity of said assets; in turn, these can aff ect the
performance of property markets and infl uence local development prospects and
job creation opportunities. In investment operations, the economic outcomes are
contingent on the adoption and proper use of a set of policy instruments (fi scal