Economic Value of Ireland's Historic Environment - The Heritage ...

2 Importance of Heritage
In this section we consider key aspects pertaining to the role and contribution of the historic environment,
focusing on its public good characteristics, the range of economic and social benefits it may provide, and
an understanding of the rationale for public intervention in the sector. This discussion offers a concise
theoretic context and body of reference to the current study.
2.1 Definitions of Heritage
Heritage is a diverse and complex sector with a plethora of specialist interests reflecting the richness and
diversity of the assets which it comprises. At its broadest it may be asserted that the totality of the
environment, whether rural or urban, on land or under water, has a historical dimension that contributes to
its quality and character, having been shaped by human and natural processes over thousands of years.
Past generations have left their mark in the form of monuments, buildings and sites, both in towns and the
countryside, providing a sense of place, well being and cultural identity.
More specifically, heritage can usefully be seen as comprising sets of 'assets', which may be further
grouped into a number of inter-related categories, but especially: (1) built environment (including historic
buildings, monuments and townscapes); (2) archaeological (sites and landscapes); (3) cultural
(museums, archives and libraries); and (4) natural (heritage landscapes, scenic and coastal areas).
2.2 Role and Importance of Heritage
Heritage may be valued in a variety of ways, both by individuals and communities. Value may be
attached to the aesthetic and emotional pleasure gained from experiencing historic sites, through the role
of heritage as a contributor to quality of life and sense of cultural identify, to the economic value which
can be attributed to such sites as generators of revenue, jobs and training opportunities. Heritage has an
important role as a contributor to sustainable economic growth and the creation of attractive communities
that are places where people want to live, work and visit. Unquestionably, heritage represents a valuable
national asset, and one which is fundamental to Ireland's core values and principles as a nation 7 .
There is a strong justification for public intervention and investment in heritage on economic grounds.
This rationale for public intervention is based on the correction of market failure owing to heritage's public
good 8 characteristics. Specifically, the principal sources of this market failure are connected to the
existence of positive 'externalities' (or spillovers) under circumstances where market prices are a poor
indicator of wider economic and social value. Externalities occur when there is a divergence between the
private costs/ benefits and those experienced by society as a whole.
7 Strategic Plan 2007 – 2011, Heritage Council (2007)
8 Public goods are 'non-rival': in other words, consumption of a good by one individual does not reduce the
amount of the good available for consumption by others. Pure public good are also 'non-excludable'; thus it is not
possible to exclude individuals from the good's consumption.
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