Contingent valuation studies in the arts and culture: an annotated bibliography

WorkingPaperThe Cultural Policy Center

at the University of Chicago

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Contingent Valuation Studiesin the Arts and Culture:

An Annotated Bibliographyby Doug Noonan

February 2002

Doug Noonan January 18, 2002

Contingent Valuation Studies in the Arts and Culture: An Annotated Bibliography

Introduction

The notion of cultural value is a matter of considerable and often heated debate, both in its conceptualization and in its application. Whether it is a discourse about the absolutism of measuring cultural value within the halls of academia or a debate over the cultural merits of McDonald’s versus Mozart in a coffee shop, the notion of cultural value is contentious. It is perhaps pouring gasoline onto the fire to invite an economic approach to the issue of cultural value. The economics discipline, often regarded as imperialistic and overly rationalist, brings a great deal of baggage with it. Humanistic scholars of cultural forms and values often bristle at the mention of an outsider economist, trained in theories of prices and firms, colonizing cultural studies. There is a (mis)perception that the economic approach relies on soulless, cold and calculating rational actors. This leads many who work in the cultural arena to be suspicious of and sometimes even deny any possibility of economists’ contribution. To many, an economic theory associated with profit-maximizing firms seems ill-suited to describe many artists. And perhaps some suspicion of a discipline rooted in assuming everyone is “rational” is well-founded. Nonetheless, the economic approach still has some useful insights and tools to contribute to the study of cultural value. Economics as the study of choice under conditions of scarcity indeed has in its purview a vast landscape of human behavior. Yet this wide range of fields to which to apply economic analysis to does not imply that economics can answer all of the interesting or important questions about each field. Nowhere should this limitation on the scope of economic analysis be clearer than in the cultural realm. Economists have a very well developed notion of “value,” yet economic value is not the only value we can associate with something. Economic value can complement other measures of value, just as height measurements can complement weight measurements in describing an object.1

The usefulness of introducing economic values into discussions in the cultural realm may ultimately be determined by whether this additional information is useful to decision-makers. This pragmatic application of economic tools to cultural issues is evident in the use of market research to improve museum operations and regional impact analyses to justify public subsidy for arts programs. The concept of “cultural capital” has also been applied to arguments for building demand for and appreciation of certain activities. Basics of Cultural Economics

Many cultural goods, broadly construed, fall within a class of goods that economists call “public goods.” These goods are characterized by their open-access and 1 For further discussion, see Throsby, David C. 2001. Economics and Culture (New York: Cambridge University Press).

non-depletable nature. Public goods are available to everyone in a community to freely enjoy. Someone cannot be excluded from a public good’s benefits. Moreover, one person’s enjoyment of a public good does not diminish the quality of the good for anyone else. Public goods are differentiable from other classes of goods to which access is restricted (e.g. cable television programs), are depletable (e.g. art galleries with free admission), or both closed-access and depletable (e.g. musical CDs). Some public goods are readily identifiable. These include things like national defense or beautiful sunsets. Other public goods are more abstract or esoteric. These include important cultural elements such as civic pride, artistic achievement, and a common heritage. Many goods are mixed goods, exhibiting both public and private attributes. Museums are commonly cited as mixed goods, because they benefit their community at large as well as their users. Economic theory associates public goods with one of the forms of market failure. Accordingly, we typically expect too little of the public good to be produced without some form of collective action.

As a practical matter of policy, public goods have special standing for additional reasons. Public goods by their very nature are provided only in a single quantity at any moment. The same amount of national defense, cultural heritage, or other public good exists for all members in a community, whether they want that much or not. Public goods are also often provided by governments, who at least have the potential to solve the market failure problem. Yet providing the optimal amount of a public good is no easy task. Providing the optimal quantity of a public good requires governments to assess each member of the community’s value of the public good, compare that with its cost of provision, and find the equilibrium where providing more of the public good would cost more than it is valued by society. Because the aspect of a good that is public is not bought and sold in the market – you have them to enjoy whether or not you pay for them – they do not have prices associated with them. This complicates the measurement of economic value. When the market associates a dollar value with a good or service it is a relatively straightforward task to estimate the value of changing the quantity of that good or service. With no price, however, a public good’s economic value is more elusive.

There are several ways, in principle, to go about trying to estimate the value of public goods. Some of these rely upon “revealed preferences.” This involves examining peoples’ behavior and inferring from it their willingness to pay for public goods. For instance, the value of a local theatre can be inferred by the travel costs that visitors incur, and or the value of a city’s cultural amenities can be inferred by the wage differential paid to workers in that city compared to other cities. Other approaches rely upon constructing market-like conditions as an experiment. Asking people to make tradeoffs among different public goods attributes in a laboratory setting can offer insights about the economic value. Another approach relies on “stated preferences” to deduce economic value for public goods. Stated preference approaches ask individuals to state their maximum willingness to pay (WTP) for more public goods, usually in the context of a survey. Contingent Valuation

A prominent branch of stated preference estimation is known as contingent valuation methodology (CVM). Essentially, contingent valuation methodology involves asking a sample of individuals how much they would be willing to pay for a marginal

change in the quantity of a public good provided. This measurement approach comes from a well-developed literature among environmental economists, who frequently use CVM to estimate the value of environmental quality. Extensive application of the method in the field over the past several decades has led to the development of numerous guidelines for appropriate use of CVM. A blue-ribbon panel, headed by Nobel laureates Ken Arrow and Robert Solow, summarized this “state of the art” of CVM research in their 1993 “Report of the National Oceanic and Atmospheric Administration Panel on Contingent Valuation.” The NOAA report points out the risks in CVM surveys, identifies important techniques for avoiding those pitfalls, and ultimately concludes that proper CVM surveys can contribute important information about valuation.

Is a tool from the environmental arena appropriate for the cultural arena? There are many important similarities between environmental and cultural goods. Environmental amenities are often characterized by providing recreational or “use” values, but many important environmental public goods have “non-use” values. These values include “existence value” (e.g. many people appreciate the existence of the Grand Canyon, even if they never have or never intend to visit it), “altruistic value” (i.e. the value derived from having others use the good), “option value” (i.e. the value of having the option to use something at a later date), “bequest value” (i.e. the value derived from providing the good for others in the future), or other “intrinsic values” for the good that people may have. Each of these types of esoteric values play prominent roles in the cultural arena as well. CVM has been developed precisely to measure these non-use values, and extending its application to cultural goods and services appears to be a natural fit.

Other concerns peculiar to cultural studies raise caution in the application of CVM to the cultural arena. Contingent valuation exercises are notoriously sensitive to the valuation context, or how the willingness-to-pay question is posed. This sensitivity can be amplified for cultural goods, where objective language to describe cultural goods may be scarce. In addition, many cultural goods have no physical substance, making them difficult to describe in a survey format to a randomly sampled respondent. CVM validity relies on clear and consistent definitions of the good in question. Finally, the values expressed through CVM surveys provide a single, economic measurement of the good in question. Its validity notwithstanding, this measure of value may not provide sufficient information about the cultural good in question. In other words, economic valuation of cultural goods may not equate to the cultural value associate with that good.

Another important characteristic of cultural goods, which has not yet received much consideration among CVM practitioners, is the possibility that WTP values may be either positive or negative. Unlike typical environmental goods, where the mere existence of an amenity is not generally thought to cause even the most disinterested individual any harm, cultural goods may “offend” certain groups within a community. More or less of certain cultural icons may mean entirely opposite things to different groups. The display of the Confederate flag over the South Carolina capitol building is an obvious example of a cultural “good” that has positive symbolic values to some constituencies and negative values to others. The prominent debate over public funding of the arts in the United States also reflects how some groups may place a positive (altruistic) value on providing art for others to see, while others groups place a negative value on others seeing the very same art. Although the studies in the bibliography that

follows do not typically take this possibility into account, future cultural CVM research would do well to explore its implications. Literature Review

There have been many applications of CVM to cultural goods, many of which have been reported in the academic literature. The first cultural CVM studies were conducted in the 1980s, but the great majority of cultural CVM studies have been published in the past decade. The recent interest in applying economic valuation techniques to the cultural arena can be explained in part by (1) improvement in the valuation techniques, (2) increased demand for and attention paid to cultural public goods, and (3) increased recognition of the trade-offs inherent in public provision of cultural goods. Tracing the development of the cultural CVM literature presents important background information about the value of different cultural goods. It also points to trends and suggests future directions for research in economic valuation of cultural goods. Finally, it indicates some of the methodological issues that are particular to the cultural context, and how some of these have been addressed in practice.

This annotated bibliography of the CVM literature on arts and culture aims to briefly summarize each of the studies conducted, their methods and their findings, and how they fit into the literature as a whole. The studies reviewed below represent the results of an extensive search of relevant publications. Given the emerging interest in the field, this literature review may not be comprehensive and is likely to be out of date before its publication. The research has been undertaken in locations scattered around the world and has been published in a variety of disparate outlets whose circulation may not extend far. Nonetheless, this bibliography does represent the most complete and current review of cultural CVM studies of which I am aware. The bibliography includes some entries for studies that I have not yet been able to obtain, either because they are not publicly available or because their authors or publishers have not responded to requests for copies. They are included for the sake of being comprehensive. Although a few of the studies summarize here do not technically employ “contingent valuation methodology,” their close kinship in method should be evident.

This literature review is designed to be a first step toward a comprehensive “reader” on the subject. The annotated bibliography is organized topically and, within each subject area, by prominence of the study in the academic literature. Entries for major published studies contain a brief summary, with critical findings and methods summarized. Citations for major studies are printed in bold type. Whenever possible, the sampling methods and WTP question formats are described, as is the mean and median WTP for the relevant public good.

The following tables list the CVM studies chronologically, geographically, and by topic (Table 1, Table 2, and Table 3, respectively). For those studies that led to multiple publications, only the first publication of each survey is referenced in the tables. Table 4 provides a summary of selected published CVM studies. It shows the survey size, the cultural good in question, and the average willingness-to-pay of respondents. This table sketches how these valuations vary over different goods and years.

A final comment on terminology for question formats is in order before proceeding. The keystone question in a CVM survey is typically of the form: “what is the most that you are willing to pay for a change in the good.” When the respondent is

allowed to give any dollar value they desire, this format is called an “open-ended” format. Sometimes, surveys make the answer multiple-choice by showing respondents a “payment card” with different ranges of dollar values and asking them to select the highest range for their WTP. Closely related to this format is the “payment ladder” format. Another common approach is to ask “are you willing to pay $X for this change?” The “$X” is a specific dollar value, such as $50, which randomly varies among respondents. This question format is known as a “dichotomous choice” format, because respondents essentially have the option to accept the change in public good along with a change in their income or to decline it and maintain the status quo. Dichotomous choice formats are the preferred format, in part because they simplify the answering task and simulate a basic referendum/voting decision. Still other question formats can be used. A full description of the different question formats and their effects on estimation is beyond the scope of this paper.2

2 A thorough discussion can be found in Mitchell,, Robert Cameron and Richard T. Carson. 1989. Using Surveys to Value Public Goods: The Contingent Valuation Method (Washington, DC: Resources for the Future).

TABLE 1: CULTURAL CVM STUDIES BY YEAR YEAR TOPIC SPECIFIC GOOD AUTHORS (ENTRY #) 1972 Broadcast closed-circuit TV program Bohm (101) 1980 Arts Mildura Arts Center, Australia Throsby, O'Shea (13) 1983 Arts support Australian arts through taxes Thompson, et. al. (1) 1983 Theatre referendum on a Swiss municipal theatre Scheider, Pommerehne (59) 1986 Arts performing arts & culture in Ontario Morrison, West (9) 1988 Arts cultural attractions in Britain Myerscough, et. al. (14) 1989 Museums purchase 2 Picasso paintings by Swiss city Frey, Pommerehne (68) 1990 Broadcast TV viewing Ehrenberg, Mills (98) 1992 Historical site Nidaros Cathedral, Norway Navrud (36) 1994 Historical site Durham Cathedral, England Willis (20) 1994 Historical site maintain buildings in Neuchatel, Swiss. Grosclaude, Soguel (21) 1994 Historical site three historic monuments in Italy Maggi (47) 1994 Museums all Quebec museums Martin (63) 1995 Broadcast PBS TV in Las Vegas Schwer, Daneshvary (96) 1996 Historical site renovate buildings in Newcastle Garrod, et. al. (25) 1996 Historical site Warkworth Castle, England Powe, Willis (50) 1996 Heritage cultural heritage of grazing Australian alps Lockwood, Tracey, Klomp (72) 1996 Archeological sites Mexican archeological sites Beltrán, Rojas (92) 1997 Historical site Fés Medina, Morocco Carson, et. al. (32) 1997 Historical site reducing damage to DC monuments Morey, et. al. (40) 1997 Theatre Royal Theatre in Copenhagen Bille Hansen (54) 1997 Heritage Bulgarian monasteries Mourato (73) 1998 Historical site historic building in St. Genevieve, MO Chambers et. al. (36) 1998 Historical site Rivoli Castle, Italy Scarpa, Sirchia, Bravi (46) 1998 Historical site entry to Warkworth Castle, England Willis, Garrod (51) 1998 Historical site historic city of Split, Croatia Pagiola (53) 1998 Theatre Teatro Colon in Buenos Aires Roche Rivera (60) 1998 Museums Italian museums Bravi, Scarpa (66) 1998 Museums Central Finland Museum Tohmo (69) 1998 Archeological sites Campi Flegrei in Italy Riganti, Scarpa (89) 1999 Arts local area arts in Kansas Glass, et. al. (12) 1999 Historical site road options for Stonehenge Maddison, Mourato (29) 1999 Broadcast domestic TV requirements Papandrea (93) 1999 Libraries reference desk services at university library Harless, Allen (102) 1999 Libraries St. Louis, MO public libraries Holt, Elliott, Moore (103) 2000 Historical site Napoli Musei Aperti in Naples, Italy Santagata, Signorello (26) 2000 Historical site visits to baroque city of Noto, Italy Cuccia, Signorello (48) 2000 Historical site Bosco di Capodimonte Willis, Riganti, Garrod (49) 2000 Historical site access to Machu Picchu Hett, Mourato (52) 2000 Heritage historical environment Creigh-Tyte (87) 2000 Broadcast filmmaking industry in Quebec and France Begin, Colbert, Dupre (99) 2000 Libraries Norwegian libraries Aabø, Strand (104) 2000 Sports arena UK basketball, baseball team Johnson, Whitehead (106) 2001 Historical site cleaning Lincoln Cathedral, England Pollicino, Maddison (18) 2001 Historical site hotel in Ft. Collins, CO Kling, Revier, Sable (44) 2001 Museums congestion in the British Museum Maddison, Foster (64) 2001 Museums services in Galleria Borghese in Rome Mazzanti (65) 2001 Heritage recorded heritage in Surrey History Centre Ozdemiroglu, Mourato (80) 2001 Broadcast Irish public radio Jennings (100) 2001 Sports Pittsburgh Penguins hockey team Johnson, et. al. (107) 2002 Arts arts in Kentucky Thompson, et. al. (10) 2002 Arts arts festival in South Africa Snowball, Antrobus (11) 2002 Heritage aboriginal rock paintings in Canada Boxall, et. al. (77)

TABLE 2: CULTURAL CVM STUDIES BY LOCATION COUNTRY TOPIC SPECIFIC GOOD AUTHORS (ENTRY #) Argentina Theatre Teatro Colon in Buenos Aires Roche Rivera (60) Australia Arts Mildura Arts Center, Australia Throsby, O'Shea (13) Australia Arts support Australian arts through taxes Thompson, et. al. (1) Australia Heritage grazing Australian alps Lockwood, Tracey, Klomp (72) Australia Broadcast domestic TV requirements Papandrea (93) Britain Arts cultural attractions in Britain Myerscough, et. al. (14) Britain Broadcast TV viewing Ehrenberg, Mills (98) Britain Historical site Durham Cathedral, England Willis (20) Britain Historical site renovate buildings in Newcastle Garrod, et. al. (25) Britain Historical site Warkworth Castle, England Powe, Willis (50) Britain Historical site entry to Warkworth Castle, England Willis, Garrod (51) Britain Historical site road options for Stonehenge Maddison, Mourato (29) Britain Historical site Bosco di Capodimonte Willis, Riganti, Garrod (49) Britain Heritage historical environment Creigh-Tyte (87) Britain Historical site cleaning Lincoln Cathedral, England Pollicino, Maddison (18) Britain Museums congestion in the British Museum Maddison, Foster (64) Britain Heritage Surrey History Centre Ozdemiroglu, Mourato (80) Bulgaria Heritage Bulgarian monasteries Mourato (73) Canada Arts performing arts & culture in Ontario Morrison, West (9) Canada Museums all Quebec museums Martin (63) Canada Heritage aboriginal rock paintings in Canada Boxall, et. al. (77) Canada/France Broadcast filmmaking in Quebec and France Begin, Colbert, Dupre (99) Croatia Historical site historic city of Split, Croatia Pagiola (53) Denmark Theatre Royal Theatre in Copenhagen Bille Hansen (54) Finland Museums Central Finland Museum Tohmo (69) Ireland Broadcast Irish public radio Jennings (100) Italy Historical site three historic monuments in Italy Maggi (47) Italy Historical site Rivoli Castle, Italy Scarpa, Sirchia, Bravi (46) Italy Museums Italian museums Bravi, Scarpa (66) Italy Archeo. sites Campi Flegrei in Italy Riganti, Scarpa (89) Italy Historical site Napoli Musei Aperti in Naples, Italy Santagata, Signorello (26) Italy Historical site visits to baroque city of Noto, Italy Cuccia, Signorello (48) Italy Museums services in Galleria Borghese in Rome Mazzanti (65) Mexico Archeo. sites Mexican archeological sites Beltrán, Rojas (92) Morocco Historical site Fés Medina, Morocco Carson, et. al. (32) Norway Historical site Nidaros Cathedral, Norway Navrud (36) Norway Libraries Norwegian libraries Aabø, Strand (104) Peru Historical site access to Machu Picchu Hett, Mourato (52) South Africa Arts arts festival in South Africa Snowball, Antrobus (11) Sweden Broadcast closed-circuit TV program Bohm (101) Switzerland Theatre referendum on a municipal theatre Scheider, Pommerehne (59) Switzerland Museums purchase 2 Picasso paintings by city Frey, Pommerehne (68) Switzerland Historical site maintain buildings in Neuchatel Grosclaude, Soguel (21) United States Broadcast PBS TV in Las Vegas Schwer, Daneshvary (96) United States Historical site reducing damage to DC monuments Morey, et. al. (40) United States Historical site historic building in St. Genevieve, MO Chambers et. al. (36) United States Arts local area arts in Kansas Glass, et. al. (12) United States Libraries reference desk services at university Harless, Allen (102) United States Libraries St. Louis, MO public libraries Holt, Elliott, Moore (103) United States Sports arena UK basketball, baseball team Johnson, Whitehead (106) United States Historical site hotel in Ft. Collins, CO Kling, Revier, Sable (44) United States Sports Pittsburgh Penguins hockey team Johnson et. al. (107) United States Arts arts in Kentucky Thompson, et. al. (10)

TABLE 3: CULTURAL CVM STUDIES BY TOPIC YEAR TOPIC SPECIFIC GOOD AUTHORS (ENTRY #) 1983 Arts support Australian arts through taxes Thompson, et. al. (1) 1986 Arts performing arts & culture in Ontario Morrison, West (9) 2002 Arts arts in Kentucky Thompson, et. al. (10) 2002 Arts arts festival in South Africa Snowball, Antrobus (11) 1999 Arts local area arts in Kansas Glass, et. al. (12) 1980 Arts Mildura Arts Center, Australia Throsby, O'Shea (13) 1988 Arts cultural attractions in Britain Myerscough, et. al. (14) 2001 Historical site cleaning Lincoln Cathedral, England Pollicino, Maddison (18) 1994 Historical site Durham Cathedral, England Willis (20) 1994 Historical site maintain buildings in Neuchatel, Swiss. Grosclaude, Soguel (21) 1996 Historical site renovate buildings in Newcastle Garrod, et. al. (25) 2000 Historical site Napoli Musei Aperti in Naples, Italy Santagata, Signorello (26) 1999 Historical site road options for Stonehenge Maddison, Mourato (29) 1997 Historical site Fés Medina, Morocco Carson, et. al. (32) 1992 Historical site Nidaros Cathedral, Norway Navrud (36) 1998 Historical site historic building in St. Genevieve, MO Chambers et. al. (36) 1997 Historical site reducing damage to DC monuments Morey, et. al. (40) 2001 Historical site hotel in Ft. Collins, CO Kling, Revier, Sable (44) 1998 Historical site Rivoli Castle, Italy Scarpa, Sirchia, Bravi (46) 1994 Historical site three historic monuments in Italy Maggi (47) 2000 Historical site visits to baroque city of Noto, Italy Cuccia, Signorello (48) 2000 Historical site Bosco di Capodimonte Willis, Riganti, Garrod (49) 1996 Historical site Warkworth Castle, England Powe, Willis (50) 1998 Historical site entry to Warkworth Castle, England Willis, Garrod (51) 2000 Historical site access to Machu Picchu Hett, Mourato (52) 1998 Historical site historic city of Split, Croatia Pagiola (53) 1997 Theatre Royal Theatre in Copenhagen Bille Hansen (54) 1983 Theatre referendum on a Swiss municipal theatre Scheider, Pommerehne (59) 1998 Theatre Teatro Colon in Buenos Aires Roche Rivera (60) 1994 Museums all Quebec museums Martin (63) 2001 Museums congestion in the British Museum Maddison, Foster (64) 2001 Museums services in Galleria Borghese in Rome Mazzanti (65) 1998 Museums Italian museums Bravi, Scarpa (66) 1989 Museums purchase 2 Picasso paintings by Swiss city Frey, Pommerehne (68) 1998 Museums Central Finland Museum Tohmo (69) 1996 Heritage cultural heritage of grazing Australian alps Lockwood, Tracey, Klomp (72) 1997 Heritage Bulgarian monasteries Mourato (73) 2002 Heritage aboriginal rock paintings in Canada Boxall, et. al. (77) 2001 Heritage recorded heritage in Surrey History Centre Ozdemiroglu, Mourato (80) 2000 Heritage historical environment Creigh-Tyte (87) 1998 Archeological sites Campi Flegrei in Italy Riganti, Scarpa (89) 1996 Archeological sites Mexican archeological sites Beltrán, Rojas (92) 1999 Broadcast domestic TV requirements Papandrea (93) 1995 Broadcast PBS TV in Las Vegas Schwer, Daneshvary (96) 1990 Broadcast TV viewing Ehrenberg, Mills (98) 2000 Broadcast filmmaking industry in Quebec and France Begin, Colbert, Dupre (99) 2001 Broadcast Irish public radio Jennings (100) 1972 Broadcast closed-circuit TV program Bohm (101) 1999 Libraries reference desk services at university library Harless, Allen (102) 1999 Libraries St. Louis, MO public libraries Holt, Elliott, Moore (103) 2000 Libraries Norwegian libraries Aabø, Strand (104) 2000 Sports arena UK basketball, baseball team Johnson, Whitehead (106) 2001 Sports Pittsburgh Penguins hockey team Johnson et. al. (107)

TABLE 4: WTP FOR SELECTED STUDIES

Authors Year Good Curr-ency

WTP Survey N

Thompson, et. al. 1983 support Australian arts through taxes Aus. 18 827

Morrison, West 1986 support for performing arts in Ontario through taxes

Can. 6 463

Thompson, et. al. 2002 preventing losing 25% of arts in Kentucky

US 13* 503

Glass, et. al. 1999 increase in local area arts in Kansas US 19* 515 Pollicino et. al. 2001 cleaning Lincoln Cathedral more often £ 15* 328 Willis 1994 access to Durham Cathedral, England £ 1º 92 Grosclaude, et. al. 1994 maintain buildings in Neuchatel Sw. Fr. 5 200 Garrod, et. al. 1996 renovate buildings in Newcastle £ 10 202 Santagata, et. al. 2000 support for Napoli Musei Aperti It. lira 17000* 468 Maddison, et. al. 1999 road options for Stonehenge £ 0º 357

World Bank 1998 prevent deterioration of Fés Medina, Morocco

US 30*º 600

Navrud 1992 preservation of Nidaros Cathedral, Norway

US 51* 163

Chambers, et. al. 1998 historic building in St. Genevieve, MO

US 6*º 305

Morey, et. al. 1997 reducing damage rate to DC monuments by 50%

US 4 272

Kling, et. al. 2001 hotel in Ft. Collins, CO US 121*º 212 Scarpa, et. al. 1998 Rivoli Castle, Italy US 28* 1323

Powe, Willis 1996 preservation of Warkworth Castle, England

£ 2º 201

Bille Hansen 1997 support for the Royal Theatre in Copenhagen

US 11 1843

Martin 1994 support for all Quebec museums Can. 8* 908

Maddison, Foster 2001 congestion costs in the British Museum, per marginal visitor

£ 6*º 400

Mazzanti 2001 admission to the Galleria Borghese in Rome

It. lira 6000º 185

Lockwood, et. al. 1996 preserve cultural heritage of grazing Australian alps

Aus. 81* 702

Boxall, et. al. 2002 aboriginal rock paintings in Canada ? ? ?

Riganti, Scarpa 1998 conserving all of Campi Flegrei in Italy

US 216* 448

Beltrán, Rojas 1996 preservation of Mexican archeological sites

new pesos

36* 6503

Papandrea 1999 increase domestic TV programming by 10%

Aus. 12 2193

Schwer, et. al. 1995 PBS TV in Las Vegas US 25* 229

Harless, Allen 1999 18 extra reference desk hours at university library for faculty

US 5 382

Johnson, et. al. 2000 building a new UK basketball arena US 5* 230

Johnson, et. al. 2001 keeping the Pittsburgh Penguins hockey team

US 6* 293

* Indicates mean WTP is given. Otherwise, median WTP reported here. º Indicates the WTP payment is a one-time payment.

Publications by topic area:

ARTS 1. Thompson, B. J. C. David Throsby, and Glenn A. Withers. 1983.

“Measuring Community Benefits from the Arts.” Research Paper No. 261 (School of Economic and Financial Studies, Macquarie University). This paper reviews a major CVM effort in Australia in the early 1980s. They describe their methodology, development, and content of the survey in great detail. They conducted 827 interviews of Sydney residents. The survey asked respondents what the most they want paid out of their taxes to support Australian arts at their current level. The survey varied the tax liability of the open-ended WTP question by posing it in two ways: where their taxes would change by the amount of their answer and where they would not. It also varied the level of information, by next informing respondents of current government spending levels on the arts. Later, in the context of government spending on ten other categories, the survey also asked whether the $6 per capita spending on arts should increase, decrease, or stay the same. Those who desiring a change were asked what they would like it changed to, how to pay for it, and (if necessary) which spending categories to change. They could observe how WTP responses varied with more information and with tax liability. The WTP for government support of arts in Australia can be summarized in the following table: Non-informed Informed Liability Non-Liability Liability Non-Liability Mean 144.2 221.3 96.7 154.8 Median 49.8 50.5 18.2 20.2

In the context of government spending on other categories, 72.1% preferred to increase the $6 per capita spending on arts, while only 3.5% preferred to decrease it. The mean and median suggested spending level was $43.1 and $18.3, respectively, for those choosing to increase spending. The average amount drops to $32.78 over the full sample. A full 80.2% of respondents opted to pay for the change through adjusting spending in other categories (rather than adjusting the overall tax level), with “social services” and “defense” being the categories most often selected for adjustment.

2. Throsby, C. David, Glenn A. Withers. 1986. “Strategic Bias and Demand

for Public Good: Theory and an Application to the Arts.” Journal of Public Economics 31(3): 307-321. Reporting on the same survey as Thompson et. al. (1983), Throsby and Withers focus more on the presence of bias in the CVM survey. They find significant free-rider, information, and mixed good biases in their results. They measure

these biases by asking respondents for their WTP for increases in government spending on the arts in several ways. First, they asked for WTP supposing that the individual’s tax burden would actually change, and they ask again supposing that total taxes are fixed. This allows a free-rider bias to be observed. They also recorded WTP values before and after informing respondents of their estimated tax burden for the arts. This allows an information bias to be observed. They also asked about private arts consumption behavior. This lets them assess the extent to which arts spending has private use value for respondents. They identify strong and weak free-riders and “honest respondents,” and estimate mean WTP for each group under different liability and information settings. They find 35% of the sample to be “free riding,” giving different WTP answers depending on whether the tax level is held fixed or not. These “free riders” give high WTP responses when taxes are fixed. They find, as in Throsby (1984), that WTP values are approximately 40% higher for those who are consumers of arts, implying a strong mixed good bias. They also observe a consistent information bias, where the mean WTP value approaches the mean tax share of arts for those respondents who are told of the share of their tax going to arts. They conclude by estimating the demographic determinants of free-riding behavior.

3. Throsby, C. David, Glenn A. Withers. 1982. “Strategic Bias and Public Good

Valuation: Survey Evidence on Free-Riding.” Working Papers in Economics and Econometrics 80. Australian National University.

4. Throsby, C. David, Glenn A. Withers. 1982. “Measuring the Demand for the

Arts as a Public Good: Theory and Empirical Results.” Research Paper no. 254 (School of Economic and Financial Studies, Macquarie University).

5. Throsby, C. David, Glenn A. Withers. 1983. “Measuring the Demand for the

Arts as a Public Good: Theory and Empirical Results.” in William S. Hendon and James L. Shanahan, eds. Economics of Cultural Decisions (Cambridge, MA: Abt Books).

6. Throsby, C. David. 1984. “The Measurement of Willingness-to-Pay for Mixed

Goods.” Oxford Bulletin of Economic Studies 46(4): 279-289. 7. Throsby, C. David, Glenn A. Withers. 1985. “What Price Culture?” Journal of

Cultural Economics 9(2): 1-34.

Reprinted in Ruth Towse, ed. Cultural Economics: The Arts, the Heritage, and the Media Industries, Volume II (Northampton, MA: Edward Elgar Publisher).

8. Withers, Glenn A. and C. David Throsby. 1994. Public Expenditure in Australia

(Canberra, Australia: Australian Government Publishing Services).

9. Morrison, William G. and E. G. West. 1986. “Subsidies for the Performing Arts: Evidence on Voter Preference.” Journal of Behavioral Economics 15: 57-72. The Morrison and West study asked via telephone 463 Canadian residents about their willingness to pay for public expenditures for performing arts in Ontario, Canada and for cultural activities in Canada. Similar to the Throsby and Withers study, the sample is split among those respondents who were told that the overall budget was fixed and that it was flexible (ie. “tax liability”). Ater being told of the current per capita spending, respondents indicated their preferred level of spending from among several ranges. The median range of WTP for performing arts in Ontario was $6 - $9, regardless of whether the question was posed under tax liability or not. The actual per capita spending on performing arts was given as $3.35. The median range of WTP for cultural activities in Canada was $140-149 for the fixed budget sample and $90 - $109 for the tax liable sample. The actual level of annual per capita cultural activities spending was given as $128. Their results point to a strategic (or hypothetical) bias where non-liability produces higher WTP responses. They also asked about sources of “external benefits” to non-users of performing arts, with option value and bequest value popular among respondents.


10. Thompson, Eric, Mark Berger, Glenn Blomquist, and Steve Allen. 2002.

“Valuing the Arts: A Contingent Valuation Approach.” forthcoming in Journal of Cultural Economics 26(2). The authors conduct a statewide mail survey in Kentucky, receiving 168 completed surveys from their sample of all households in the state and 335 from their random sample of “arts patrons” in the state. Each survey asked a WTP question using a dichotomous-choice format for one of three scenarios: (1) increase the number of arts exhibits and performances in the state by 25% via a private fund, (2) prevent the reduction in the number of arts exhibits and performances in the state by 25% (due to government budget cuts) via annual donations, and (3) the same as (2) except for a 50% change. The survey also asks about the certainty of the response on a 1 – 10 scale, and they consider only those with a 9 or 10 response as “willing to pay.” The mean WTPs for scenarios (1), (2), and (3) among all households are $8.36, $12.55, and $24.31, respectively. These values increase to $111.65, $93.45, and $131.63, respectively for the arts patron sample. They also parametrically estimate WTP values for all all households, attendees, and non-attendees. There appears to be some loss aversion here, where the WTP to avoid a 25% loss in performances exceeds the WTP to achieve a 25% gain. The arts patron mean WTP is heavily influenced by a WTP response of $500. Nonetheless, the mean WTP of arts patrons was 3 to 13 times

higher than others. In addition, the arts patrons sample’s response rate (30%) exceeded that of the statewide sample (56%), suggesting that those favorable to arts may be more likely to respond to mail surveys. The survey also asks about household arts donations and performance attendance. Link: subscribers can access at http://www.kluweronline.com/issn/0885-2545

11. Snowball, J. D. and G. G. Antrobus. WTP study of Standard Bank National Arts Festival. Unpublished. The authors were commissioned by Standard Bank to estimate the value of the annual arts festival in Grahamstown, South Africa. They asked respondents of their WTP in extra taxes each month to support the festival. Even though the Grahamstown East residents are much poorer, 73.5% of East residents were willing to pay at least R5. On the other hand, 81.3% of West residents were willing to pay at least R5. (“Grahamstown Says ‘Yes’.” artSMart online news. July 19, 2001. http://www.artsmart.co.za/festivals/archive/219.html (last accessed January 7, 2002).)

12. Glass, Robert H., et. al. 1999. “Economic Scope, Impact and Marketing Study of

the Kansas Arts Commission.” The University of Kansas, Institute for Public Policy and Business Research Report No. 257, July 28. This economic impact study prepared for the Kansas Arts Commission surveyed 515 Kansas households about state arts funding. They found that a quarter of the respondents knew that less than a dollar per capita went to the Kansas Arts Commission, while 38% gave no answer. Approximately 58% of respondents approved of federal funding of the arts, whereas 77% approved of state funding. They asked a dichotomous choice WTP for "an increase in the amount of arts activity in your local area." This unspecified increase was to be paid through an increase in state taxes, so the WTP question was asked only of those approving of state arts funding. Even at the highest bid value given, $20, they found 47% of households willing to pay. They estimate a WTP of approximately $19 per household. Link: http://arts.state.ks.us/pdf/impact_study.pdf and the appendix is at: http://arts.state.ks.us/pdf/impact_study_appen.pdf

13. Throsby C. David and Margaret O’Shea. 1980 . “The Regional Economic Impact of the Mildura Arts Centre.” Research Paper No. 210 (School of Economic and Financial Studies, Macquarie University).

This regional economic analysis asks Mildura area residents their WTP for non-use benefits from the Arts Centre. They randomly sampled 60 urban residents and 78 rural residents by mail survey, and they surveyed 110 theatre attenders and 41 gallery attenders on site with the same questionnaire. They ask for a WTP for

increasing (or decreasing) local government funding to the Centre to enable a greater (or lesser) amount of activity. They find mean WTP values for urban, rural, theatre users, and gallery users of $6.80, $6.97, $7.61, and $7.20, respectively. The WTP question informed respondents that the average tax share for the Centre was $6 per person. The question format was akin to a payment ladder, where respondents checked the box with their preferred spending level. They also estimate demographic determinants of WTP values for the rural and urban groups.

14. Myerscough, J., et al. 1988. The Economic Importance of the Arts in Britain

(London: Policy Studies Institute).

This paper reports on a survey that asked if the amounts of money spent on cultural attractions should be increased, decreased, or stay the same. Although not a contingent valuation survey, its findings are relevant.3

15. Evans, Graeme. 1999. “The National Performing Arts - Exploiting Willingness to

Pay and Consumer Surplus: A Case of Cultural Policy Failure.” Leisure Studies 18(2): 97-118.

This paper reviews the state of performing arts in Britain, covering a wide range of economic indicators. It briefly summarizes a survey conducted for the Arts Council of Great Britain and the Scottish Arts Council. Although apparently not a CVM study, it does ask willingness-to-pay questions. The survey of 1300 arts attendees in four major British cities found a substantial willingness to pay more than the current prices for performing arts events. Specifically, Evans notes that, according to the survey conducted in 1991, audiences were willing to pay 21 – 44% more for admission to ballet, drama, plays in repertory, and opera performances. Evans found that specific arts venues were able to achieve similar increases in ticket prices from 1986 – 1995 “before a significant decline in attendances was experienced.”

16. Evans, Graeme. 1998. “The National Performing Arts - Exploiting Willingness to

Pay and Consumer Surplus: A Case of Cultural Policy Failure.” paper presented at the Tenth International Conference on Cultural Economics, Barcelona, Spain, June 14-17, 1998.

17. Harris, Louis. 1996. Americans and the Arts VII: highlights from a nationwide

survey of the attitudes of the American people toward the arts (New York: American Council for the Arts Books).

This is the seventh in a series of semi-annual opinion polls conducted by Louis Harris and Associates. Polls were also conducted in 1992, 1987, 1984, 1980,

3 Summary available in: Access to Heritage. 1998. Parliament of Australia Senate Committee on Environment, Communications, Information Technology and the Arts. Parliament of Australia web page. http://www.aph.gov.au/senate/committee/ecita_ctte/access/contents.htm (last accessed January 7, 2002.)

1975, 1973. Although not intended as a contingent valuation survey, the Harris polls did include some questions concerning respondents’ attitudes towards the cost of the arts and government support of the arts.

HISTORICAL SITES 18. Pollicino, Marilena and David Maddison. 2001. “Valuing the Benefits of

Cleaning Lincoln Cathedral.” Journal of Cultural Economics 25 (2): 131-148. This study elicits valuation for reducing the soiling of Lincoln Cathedral caused by air pollution by increasing the (hypothetical) cleaning cycle from 40 years to 10 years. Using photographs of showing, essentially, 15 years of accumulated dirt on the exterior of the Cathedral, they conducted face-to-face interviews with 328 Lincolnshire residents in the streets. They use a double-bounded dichotomous-choice method and find evidence of starting point bias. One major addition to this paper is the estimating of mean WTP values correcting for the starting point bias in the double-bound dichotomous-choice format. The mean WTP values reported here range from £23 annually using only the single-bound dichotomous-choice answer, to £20 using the double-bound dichotomous-choice answer, to £15 with the correction. It also estimates the geographical limit of the WTP as a distance from the Cathedral (40-53 miles). Link: subscribers can access at http://www.kluweronline.com/issn/0885-2545

19. Pollicino, Marilena and David Maddison. 1999. “Valuing the Impacts of Air Pollution on Lincoln Cathedral.” CSERGE Working Paper GEC 99-03. In this earlier version of the paper, the authors note the presence of a starting point bias. They find residents of Lincoln had an average WTP of £50, whereas those outside of Lincoln had a mean WTP of only £27.

20. Willis, K. G. 1994. “Paying for Heritage: What Price for Durham Cathedral?” Journal of Environmental Planning and Management 37(3): 267-278. The Durham Cathedral in historic Durham, England has free access, with large donation boxes near the entrances and exits accompanied by pictures of a £1 coin. This study reports on a survey designed to measure use values of the Cathedral. It used an interview of 92 visitors on their way out of the Cathedral. The survey asks respondents if they already voluntarily donated. It used a payment-card format to elicit WTP for access to the Cathedral. Almost half of the respondents claimed to donate something on their way in, and 49% of the sample would be willing to pay in excess of £0.76. Willis also calculates the revenue-maximizing access fee (£0.875).

21. Garrod, G. D. and K. G. Willis. Forthcoming in Ståle Navrud and R. Ready,

Valuing Cultural Heritage: Applying Environmental Valuation Techniques to Historic Buildings, Monuments and Artifacts. (Northampton, MA: Edward Elgar Publishing).

22. Willis, K. G., N. Beale, N. Calder, and D. Freer. 1993. “Paying for Heritage:

What Price for Durham Cathedral?” Countryside Change Unit Working Paper 43. 23. Grosclaude, Pascal and Nils C. Soguel. 1994. “Valuing Damage to Historic

Buildings Using a Contingent Market: A Case Study of Road Traffic Externalities.” Journal of Environmental Planning and Management. 37(3): 279-287. This study estimates the value of damage to 16 historical buildings in Neuchatel, Switzerland. Surveying 200 residents, the interviewer presented photographs of the buildings and asked which buildings the respondent would like to see renovated soon. The survey then asked an open-ended WTP question for contributing annually to a fund to maintain the buildings; those who could not give a WTP amount were taken through an iterative bidding process with the interviewer. They found 22 respondents to be indifferent to the good in question. The mean and median WTP for the whole sample is 14.3 and 5.0 Swiss Francs, respectively. These amounts increase to 16.0 and 7.5, respectively, when the indifferent respondents are dropped. The results suggest an average damage of 283,000 Swiss Francs per building per year.

24. Soguel, Nils. “Economic assessment of damage to cultural heritage.” in

Economic Evaluation of Air Pollution Damage to Materials. Proceedings of the UN ECE Workshop on Economic Evaluation of Air Pollution Abatement and Damage to Buildings including Cultural Heritage. Eds. Kucera V., Pearce D. and Brodin Y.-W. Report 4761 (Stockholm, Sweden: Swedish Environmental Protection Agency).

25. Garrod, G. D., K. G. Willis, H. Bjarnadottir, and P. Cockbain. 1996. “The

non-priced benefits of renovating historic buildings A case study of Newcastle's Grainger Town.” Cities 13(6): 423-430. This study reports on an interview survey of 202 Newcastle taxpayers. The survey asked whether respondents were willing to pay additional tax for restoring historic buildings. They were also asked an open-ended WTP question. They find a median WTP of £10.00. Bid values were well explained by demographic, use, and other variables. They also asked respondents to allocate increased spending to different areas within Grainger Town. Respondents gave higher priority to more degraded areas. Link: subscribers can access at http://www.sciencedirect.com/science/journal/02642751

26. Santagata, Walter and Giovanni Signorello. 2000. “Contingent Valuation of a Cultural Public Good and Policy Design: The Case of "Napoli Musei Aperti"” Journal of Cultural Economics 24(3): 181-204.

This contingent valuation survey elicited WTP values from 468 Naples residents for the NMA, a network of cultural and historic monuments in the central city. The interview survey asked whether respondents would be willing to voluntarily contribute to a non-profit operator of the NMA in lieu of government support, which they suggested would be eliminated anyway. The survey also obtained an estimate of respondents’ annual cultural expenditures and reminded them of it prior to asking a dichotomous-choice WTP bid. They then asked an open-ended question for their WTP. This allowed the identification of anchoring bias. Despite only 4800 lire per capita being spent on the NMA by the city, the researchers estimate mean WTP values of 17000 and 30000 lire from the open-ended and dichotomous-choice questions, respectively. They discuss various funding mechanisms and their equity implications.

Link: subscribers can access at http://www.kluweronline.com/issn/0885-2545

27. Santagata, Walter and Giovanni Signorello. 1998. “Contingent Valuation and Cultural Policy Design: The Case of "Napoli Musei Aperti"” Fondazione Eni Enrico Mattei working paper 54.98.

Link: http://www.feem.it/web/activ/wp/abs98/54-98.pdf 28. Santagata, Walter and Giovanni Signorello. Forthcoming. “Benefits Estimation

and Policy Analysis of «Napoli Musei Aperti»” in Ståle Navrud and R. Ready, Valuing Cultural Heritage: Applying Environmental Valuation Techniques to Historic Buildings, Monuments and Artifacts. (Northampton, MA: Edward Elgar Publishing).

29. Maddison, David and Susana Mourato. 1999. “Valuing Different Road

Options for Stonehenge.” CSERGE Working Paper GEC 99-08. Maddison and Mourato conducted an interview survey of 357 households nationwide and 129 UK visitors to Stonehenge. They used computer-enhanced images to elicit WTP values for two road options at Stonehenge: replacing two nearby roads with an underground tunnel and the status quo. After learning which option the respondent preferred, they asked for a WTP value for a (two-year) tax increase to secure their preferred road option using a payment ladder format. The mean WTPs for the tunnel and status quo options are £24.90 and £9.30, respectively, expressed in present value terms. The samples were fairly evenly split on which option they preferred. Those preferring the status quo were not willing to pay as much for it. Using a median WTP approach, they find an aggregate benefit of the tunnel to be essentially zero.

30. Maddison, David and Susana Mourato. 1998. “Valuing Different Road Options

for Stonehenge.” Report for English Heritage, UK.

Using a CVM survey with the same valuation scenario as described Maddison and Mourato (1999), Maddison and Mourato estimate a mean WTP of $20-$23 and $6-$11 per household per year for two years for on-site and off-site UK nationals, respectively (measured in 2001 US$). (Information from David Maddison, “The Economic Value of Archaeology,” paper prepared for the Institute of Field Archaeologists Annual Conference, 10-12 April 2001, University of Newcastle.)

31. World Bank Group. 1998. “Valuing the Benefits of Conservation of the Fés

Medina.” Case Study Summary from World Bank web page. The World Bank conducted a valuation study of this urban World Heritage site in Morocco. They interviewed 600 visitors to Morocco (tourists to the site and other visitors). After describing the situation at Fés using photographs, the survey posed the following hypothetical scenario: to prevent the continuing deterioration, the government and international experts have a plan to improve the site, preserve the site’s character and heritage, and ensure that the Medina continue to be vibrant living city. Fés visitors were then asked if they would still have visited the site if they had to pay a (randomly chosen) preservation fee. For non-visitors to Fés, the payment was presented as a departure fee. In this brief summary of the findings, the average WTP among visitors and non-visitors to Fés is $70 and $30, respectively. In addition, this case study reports that a survey of experts estimates a median WTP of $2.15 among European households for the preservation of the Fés Medina.

Link:

http://wbln0018.worldbank.org/environment/EEI.nsf/3dc00e2e4624023585256713005a1d4a/6969e0ba8570192385256706005fa4ad/$FILE/CStudyFes.pdf

32. Carson, Richard T., Robert Cameron Mitchell, Michael C. Conaway, and Ståle

Navrud. 1997. “"Non-Moroccan Values for Rehabilitating the Fés Medina.” (Washington: World Bank Report.)

33. Carson, Richard T., Robert Cameron Mitchell, Michael C. Conaway, and Ståle

Navrud. 1997. “Contingent Valuation of the Benefits of Conserving the Fés Medina, Quantification of Non-Moroccan's Willingness to Pay.” (Cambridge, MA: Harvard University Graduate School of Design, Unit of Housing and Urbanization.)

34. Agostini, Paola. 1998. “Valuing the Invaluable: The Case of the Fés-Medina,”

paper presented at World Bank Conference on Culture in Sustainable Development, Washington, DC, October 28.

35. Carson, Richard T., Robert Cameron Mitchell, and Michael C. Conaway.

Forthcoming. “Economic Benefits to Foreigners Visiting Morocco Accruing from the Rehabilitation of the Fés Medina.” in Ståle Navrud and R. Ready, Valuing Cultural Heritage: Applying Environmental Valuation Techniques to

Historic Buildings, Monuments and Artifacts. (Northampton, MA: Edward Elgar Publishing).

36. Navrud, Ståle, ed. 1992. Pricing the European Environment (New York:

Oxford University Press). Chapter 6, authored by Ståle Navrud and Jon Strand, summarizes the findings of a CVM study of preservation value of Nidaros Cathedral in Trondheim, Norway. They surveyed 163 Norweigians and foreigners visiting the cathedral to find their WTP to “preserve the remaining original parts of the cathedral (through reduced air pollution).” The mean annual WTP was 318 NOK ($51 1992 US$) per visitor. If, however, the church was restored but all original components were lost, the WTP figure decreases to 278 NOK($45 1992 US$), a statistically insignificant drop. Thus, visitors do not exhibit a positive WTP for preserving original parts rather than simply restoring the building. Almost two-thirds of respondents did indicate that the original means more to them than restored components, and their WTP responses were significantly higher for the preserving the cathedral’s original parts. The survey asked a subsample for WTP values for preserving all historical buildings in Norway and prior to asking their WTP for preserving the Nidaros Cathedral alone. There was no difference in WTP for preserving the cathedral between the two samples. Moreover, the WTP for all historical buildings in Norway was significantly higher than for just the Cathedral. Finally, the survey attempted to discern the source of these values. The authors find most of the WTP explained by preservation motives, with only 14% owing to visitors’ use values.

37. Navrud, Ståle, P.-E. Pederson, and Jon Strand. 1992. “Valuing our Cultural

Heritage: A Contingent Valuation Survey.” Center for Research in Economics and Business Administration (Oslo, Norway: University of Oslo).

38. Chambers, Catherine M., Paul E. Chambers, and Whitehead, John C. 1998.

“Contingent Valuation of Quasi-Public Goods: Validity, Reliability, and Application to Valuing an Historic Site.” Public Finance Review 26: 137-154.

This paper reports on a mailed survey of WTP into a trust fund that would purchase and preserve a historic school building. The survey used a payment-card format. They sampled 151 residents of urban St. Louis and 154 residents of rural Warrensburg, MO. They find a mean WTP of $6. Their conservative approach to aggregating individual valuations, wherein they assume zero values for those who had not previously heard of the site, yields a total value in excess of $500,000, about ten times the market value of the site.

39. Chambers, Catherine M., Paul E. Chambers, and John C. Whitehead. 1996. “Contingent Valuation of Quasi-Public Goods: Validity, Reliability, and

Application to Valuing an Historic Site.” East Carolina University, Working Paper 9614. Link: http://www.ecu.edu/econ/wp/96/ecu9614.pdf

40. Morey, Edward, Kathleen Rossmann, Lauraine Chestnut, and Shannon Ragland. 1997. “Valuing Acid Deposition Injuries to Cultural Resources.” Report to the National Acid Precipitation Assessment Program (NAPAP), Washington D.C.

They conducted a group interview survey to elicit WTP for slowing the rate of pollution damage to outdoor marble monuments in Washington, DC. The survey relied on detailed photographs. It asked ten pairwise choice questions (is Option A or Option B preferred?) and a payment card question. There were 272 participants in the group surveys conducted in Boston and Philadelphia. Using the pairwise-choice responses, they found that the median household WTP for slowing the pollution damage by half is $73.31 (or $4.29 annually), while the mean WTP is $82.31. The median and mean household WTP values decline to $61 and $56, respectively, when only males’ responses are used. Using payment card responses, the median WTP is $68, while the mean WTP is $57.

Link: http://www.Colorado.EDU/Economics/morey/monument/index.html

41. Morey, Edward, Kathleen Rossmann, Lauraine Chestnut, and Shannon Ragland.

1997. “Valuing Acid Deposition Injuries to Cultural Resources.” Center for Economic Analysis (Boulder, CO: University of Colorado).

42. Morey, Edward and Kathleen Rossmann. 1999. “Combining Random

Parameters and Classic Heterogeneity to Estimate the Benefits of Decreasing Acid Deposition Injuries to Marble Monuments in Washington, D.C.” Document downloaded from website, 19 November 1999.

Using data from the study in Morey et. al. (1997), they focus on econometric issues owing to heterogeneity of preferences. They use classic interaction terms and random parameters and conclude that using both approaches is preferred. Using the 10 pairwise-comparison choices of the 259 individuals who completed the survey, their combined model estimates median and mean welfare changes associated with slowing the rate of pollution damage by half of $94 and $87, respectively. Link: http://www.Colorado.EDU/Economics/morey/papers/monum-rpl.pdf

43. Morey, Edward, Kathleen Rossmann, Lauraine Chestnut, and Shannon Ragland. Forthcoming. “Modeling and Estimating WTP for Reducing Acid Deposition Injuries to Cultural Resources: Using Choice Experiments in a Group Setting to Estimate Passive-Use Values.” in Ståle Navrud and R. Ready, Valuing Cultural

Heritage: Applying Environmental Valuation Techniques to Historic Buildings, Monuments and Artifacts. (Northampton, MA: Edward Elgar Publishing).

This paper describes the survey described above in Morey et. al. (1997). Using the pairwise-choice responses, they estimate a median and mean WTP for slowing the rate of acid deposition damage of $73.31 and $82.24, respectively, for their sample. This estimation is based on a conditional indirect utility function. Using sample weights, they estimate the median and mean WTP of $56.63 and $68.49, respectively, for the urban populations of Philadelphia and Boston. They estimate WTP values for the payment-card responses as in Morey et. al. (1997). Link: http://www.Colorado.EDU/Economics/morey/papers/monument.pdf

44. Kling, Robert, Charles Revier, and Karin Sable. 2001. “Estimating the

Public Good Value of Preserving a Local Historic Landmark: The Role of Non-Substitutability and Information in Contingent Valuation.” Paper presented at the Cultural Policy Workshop at the University of Chicago, November 15, 2001.

Kling et. al. conduct a survey to elicit WTP value for preserving the Northern Hotel in Fort Collins, CO, a local landmark. Their survey resembles the state’s referendum system, presenting a dichotomous-choice question about paying a one-time property tax to restore the (otherwise deteriorating) Hotel. Half of the surveys provided much more background information. Another version of the survey, also given to half the respondents, used a “paired comparison” approach to ask whether the respondent preferred a tax rebate of a specified amount or to restore the hotel. Their mail survey produced a sample of 212 usable observations, further reduced to 177 by omitting several respondents who chose WTP = $0. Their sample exhibited mean WTP values ranging from $121 to $630 across the four versions of the survey. Conservative adjustment of the results (correcting for sampling bias) lowers the mean WTP range to $3 to $54.

Link: http://culturalpolicy.uchicago.edu/workshop/kling.pdf

45. Kling, Robert, Charles Revier, and Karin Sable. 2000. “Estimating the Public

Good Value of Preserving a Local Historic Landmark: The Role of Non-Substitutability and Information in Contingent Valuation.” Paper presented at the Eleventh Biennial ACEI Conference May 28-31, 2000. Minneapolis, Minnesota USA.

46. Scarpa, Riccardo, Gemma Sirchia, and Marina Bravi. 1998. “Kernel vs.

Logit Modeling of Single Bounded CV Responses: Valuing Access to Architectural and Visual Arts Heritage in Italy.” in Richard C. Bishop and D. Romano (eds.) Environmental Resource Valuation: Applications of the Contingent Valuation Method in Italy (Boston: Kluwer Academic Publishers).

This study estimates the value of public access to Rivoli Castle, an important cultural heritage site in Italy. The survey interviewed 1,323 visitors to the castle. They asked WTP to a special independent agency to preserve current conditions and quality (including the current admission fee), where the alternative was closure of the castle to the public. The question format was dichotomous choice. They estimate that “in repeated sampling from the population of visitors 95% of the samples would show a sample average willingness to pay in excess of Lit.41,753.” Visitors to Rivoli Castle are willing to pay approximately $28 per year to keep public access to Rivoli Castle.

47. Maggi, M. 1994. “Il Valore Dei Beni Culturali: un'applicazione empirica.” in G.

Brosio (ed.), Economia dei Beni Culturali (Torino: La Rosa Editrice).

This paper reports on the use and non-use values for three historic monuments in Piedmont, Italy: the Castello de Venaria Reale, the Certosa of Persio, and the Sacro Monte of Varallo.

48. Cuccia, Tiziana and Giovanni Signorello. 2000. “A Contingent Valuation Study

of Willingness to Pay for Visiting the Baroque City of Noto, Italy.” Paper presented at the Eleventh Biennial ACEI Conference May 28-31, 2000. Minneapolis, Minnesota USA.

49. Willis, K. G., Patrizia Riganti, and G. D. Garrod. 2000. “A Contingent Valuation

Method to Derive a Price Structure to Maximise Revenue from Admission of Visitors to the Bosco di Capodimonte.” Report to Soprintendenza Per I Beni Ambientali E Architettonici Di Napoli E Provincia, Naples, Italy (Newcastle, England: Centre for Research in Environmental Appraisal and Management).

50. Powe, N. A. and K. G. Willis. 1996. “Benefits Received by Visitors to

Heritage Sites: A Case Study of Warkworth Castle.” Leisure Studies 15: 259-275.

Visitors to the Warkworth Castle in England were intercepted upon leaving and asked their WTP to enter the heritage site. The authors’ intent was to measure the use benefits received by visitors and their preservation values. Visitors paid a £1.80 admission fee (with pensioners paying only £1.35 and members of English Heritage visiting for free). The following table summarizes the mean and median WTP for the different subsamples of the 201 respondents. sample mean WTP (£) median WTP (£) all visitors 2.53 2.34 paying visitors 2.62 2.50 pensioners 2.55 2.00 English Heritage members 2.30 2.00

Over 90% of the sample expected that some of their admission fee was paying for preservation of the site. When asked their WTP for admission if none of the fee was to be used for preservation, mean and median WTP for the full sample dropped to £1.62 and £1.50, respectively. The survey then asked visitors for their WTP into a (hypothetical) collections box, whose funds would solely be used for preservation purposes, supposing that they had already paid their full WTP for admission to the castle. The mean WTP to the collections box for preservation was £0.50. The authors conclude that visitors have a mean and median WTP for preservation of £1.41 and £1.84, respectively.

51. Willis, K. G. and G. D. Garrod. 1998. “Estimating the Demand for Cultural

Heritage: artefacts of historical and architectural interest.” in David Hume Institute, Heritage, the Arts, and the Environment (Edinburgh: Edinburgh University Press).

This paper summarizes the survey for Durham Cathedral, see Willis (1994) above. It also summarizes the survey for Grainger Town Area in Newcastle, see Garrod et. al. (1996) above. After reviewing these and other cultural CVM studies, this paper reviews an interesting study done at Warkworth Castle. Visitors to the castle who looked at the sign detailing the admission charges but then chose not to enter were approached and asked if they had intended to enter the castle today. Would-be visitors were then asked what their maximum WTP to enter the castle was. At the end of the interview, they were offered tickets to enter at their stated price. They observed 97 people looking at the sign and then walking to the entrance to look inside, but only 43 of those considered themselves potential visitors that day. Of these potential visitors, 17 refused tickets at a price equal to their WTP, 17 accepted, and 9 gave WTP values in excess of the posted price and stated that they intend to enter later. Nine of the 17 who refused tickets cited a lack of time as their reason. The mean WTP of those refusing tickets was £0.94, of those accepting tickets was £1.17, of those intending to enter later was £2.40, and of those not intending to enter was £0.69. Using this real monetary test, Willis and Garrod conclude that 60% (26 out of 43) of the respondents’ WTP answers can be called into question. Notice the mean WTP of those refusing the tickets was higher than that of those accepting the tickets. Link: available to subscribers via http://www.netlibrary.com/

52. Hett, Tannis and Susana Mourato. 2000. “Sustainable Management of Machu

Picchu: a Stated Preference Approach.” Paper submitted to Conference on Sustainability, Tourism and the Environment, Dublin.

This reports on a survey of the WTP for access to Machu Picchu. They find mean WTPs of $47 and $26 for foreign tourists and for Peruvians, respectively (measured in 2001 US$). (Information from David Maddison, “The Economic Value of Archaeology,” paper prepared for the Institute of Field Archaeologists Annual Conference, 10-12 April 2001, University of Newcastle.)

53. Pagiola, Stefano. 1998. “Economic Analysis of Conservation of the Historic

Center of Split, Croatia.” Case Study Summary from World Bank web page.

This brief summary describes the deteriorating condition of Split, Croatia, a UNESCO World Heritage site. To assess the value of a project conserving the heritage resources, the World Bank conducted a contingent valuation survey of 400 tourists. This summary includes no description of the results of the survey, however. A similar survey of residents is also planned.

Link:

http://wbln0018.worldbank.org/environment/EEI.nsf/3dc00e2e4624023585256713005a1d4a/6969e0ba8570192385256706005fa4ad/$FILE/CStudySplit.pdf

THEATRE

54. Bille Hansen, Trine. 1997. “The Willingness-to-Pay for the Royal Theatre in Copenhagen as a Public Good.” Journal of Cultural Economics 21 (1): 1-28.

This reports on a telephone survey of 1,843 Danes regarding their willingness to pay for the Royal Theatre in Copenhagen through taxes. The WTP question is open-ended, coupled with a “too much, too little, just right” question about government spending on the Royal Theatre. The survey splits the sample by informing half of the respondents of the average taxpayer contribution to the theatre. The sophisticated econometric analysis finds that non-use values comprise the bulk of the aggregate social value of the theatre. Not surprisingly, users of the Theatre are willing to pay at least three times as much as non-users. The survey finds a mean willingness of 154 Danish kroners, compared to a median WTP of DKK 60 ($10.50). The median WTP is equal to the per capita tax expenditures on the Royal Theatre, regardless of whether the respondent received the tax information or not. Providing the information, however, led to a serious anchoring effect, as 45% of WTP responses equaled DKK 60.


55. Bille Hansen, Trine. 1995. “A Contingent Valuation Study of Willingness-to-Pay for the Royal Theatre in Copenhagen.” Paper presented at the Joint European Conference on Non-Market Values, Oslo, June 1995.

56. Bille Hansen, Trine. 1996. “The Danish Population's Valuation of the Royal

Theatre in Copenhagen.” AKF Summary. (AKF: Institute for Local Government Studies, Denmark, August 1996).

This summary of Trine Bille Hansen’s dissertation gives much more attention to econometric estimation issues. See Bille Hansen (1995). Link: http://www.akf.dk/eng/kgl.htm

57. Bille Hansen, Trine. 1998. “The Danes Value the Royal Theatre in

Copenhagen.” in David Hume Institute, Heritage, the Arts, and the Environment (Edinburgh: Edinburgh University Press).

This paper reports on the study described in Bille Hansen (1995) above. There is considerable discussion in this paper of the different types of values. The author estimates the use and non-use values of the theatre by users and non-users. She finds 68.8% of the theatre’s total value comes from non-use values held by those who do not go to the theatre. The paper pays substantial attention to estimating a model to explain WTP with care towards the self-selection problems inherent in theatre visitation and valuation.

Link: available to subscribers via http://www.netlibrary.com/

58. Bille Hansen, Trine. Forthcoming. “A Contingent Valuation Study of the Royal Theatre in Copenhagen.” in Ståle Navrud and R. Ready, Valuing Cultural Heritage: Applying Environmental Valuation Techniques to Historic Buildings, Monuments and Artifacts. (Northampton, MA: Edward Elgar Publishing).

59. Schneider, Friedrich and Werner W. Pommerehne. 1983. “Private Demand for

Public Subsidies to the Arts: A Study in Voting and Expenditure Theory.” in William S. Hendon and James L. Shanahan, eds. Economics of Cultural Decisions (Cambridge, MA: Abt Books).

Although not a CVM study, Schneider and Pommerehne report on an actual referendum in Basle-City, Switzerland in 1973. They predict voting behavior on a cultural public good using actual referendum voting behavior rather than hypothetical votes, as some CVM studies do. Their results are of interest in demonstrating the use of data on voter preferences to predict approval rates of various proposals. Residents voted on increasing the subsidy to the municipal theatre from 10 to 13 million Swiss Francs. The measure was defeated by 57% “no” votes. Using district-level voting and demographic data, the authors estimate a model explaining voter behavior. This allows them to calculate a revised proposal that would garner a majority of “yes” votes (e.g. increasing the subsidy to only 12.5 million Swiss Francs). A revised proposal was put to the voters in 1974, raising the subsidy to just 12 million Swiss Francs. As expected, the revised measure passed. It received 59.9% approval, while the authors’ model predicted a 60.0% approval. Using this paper’s analysis, an additional half a million Swiss Frances could have been secured for the theatre.


60. Roche Rivera, Hugo. 1998. “Teatro Colon: The Willingness to Pay for a Mixed

Public Good.” (Uruguay: Economic Department, Universidad de la Republica). 61. Roche Rivera, Hugo. 1998. “The willingness-to-pay for a public mixed good : the

COLON theatre in Argentina”, in Tenth International Conference on Cultural Economics, Barcelona 14-17 June 1998, Selection of papers C.

62. Mazzotti, Ilaria. 1998. “Managerial Efficiency and Access to the Theatre Sector:

A Contingent Valuation Test.” paper presented at the Tenth International Conference on Cultural Economics, Barcelona, Spain, June 14-17, 1998.

MUSEUMS 63. Martin, Fernand. 1994. “Determining the Size of Museum Subsidies.”

Journal of Cultural Economics 18(4): 255-270.

A phone survey of 908 Québec residents included four questions about the Québec Government’s funding of museums. It asked whether museums’ current share of the average respondent’s taxes ($7.50 Canadian) is too high, too low, or just right, and whether a tax increase for museums of a specific amount is acceptable. It also asked if government spending should be shifted to museums, holding taxes constant, and whether a specific amount is acceptable. They find a WTP of “$7.95 per year on a per capita basis … to support all Québec museums.” Although their survey was very limited in its ability to accurately elicit WTPs and their cultural good was “government spending on museums,” they did provide some evidence that WTP estimates increase when tax liability is relaxed. It should also be noted that almost twice as many respondents believed that museum’s tax share was too large as believed it was not large enough.

64. Maddison, David and Terry Foster. 2001. “Valuing Congestion Costs in the

British Museum.” Paper presented to the Economic Valuation of Cultural Heritage Conference in the Department of Economics of University College London. (Mimeo. Department of Economics. University College London.)

** This paper requests not to be cited or quoted!

Maddison and Foster report on a survey conducted at the British Museum, where visitors were asked their WTP to reduce congestion inside. They conducted a choice experiment on 400 visitors to the museum by showing them photos of three exhibits at their most crowded and photos of the same exhibits when less crowded. The survey associated the crowded photos with the (status quo) free admission and the less-crowded photos with a randomly chosen admission charge, and respondents indicated their preferred scenario. Using the differences in the number of visitors between photos, Maddison and Foster estimate a congestion cost of £5.99 imposed by the marginal visitor (on all other visitors, aggregated). They are quick to note that this value does not imply the £6 is the optimal admission fee. This study addressed congestion costs in the museum, and makes no attempt to measure its external (public good) benefits. It should be noted, however, that their pilot tests of the survey directed them to exempt those under the age of 16 from the hypothetical fee, suggesting that visitors hold some non-use values of a free admission policy.

Link: http://www.cserge.ucl.ac.uk/British_Museum.pdf

65. Mazzanti, Massimiliamo. 2001. “Discrete Choice Models and Valuation: An

Application to Cultural Heritage.” Società italiana di economia pubblica Working Paper. October 5, 2001.

Mazzanti compares different econometric modeling approaches, applied to a survey done of visitors to the Galleria Borghese in Rome. The emphasis of the paper is on econometric modeling techniques rather than on describing the survey instrument and implementation. The valuation method used is a contingent choice experiment, wherein interviewees are asked whether they prefer different scemarios of policy changes to the status quo. 185 respondents were given either three or four choice scenarios, either before or after their entered the museum. The scenarios varied in terms of access time (2 or 3 hours), ancillary services provided, and admission fee. They find no WTP for increased access time. They find a mean WTP for temporary exhibitions and multimedia services to range from 4.3–5.9 thousand lira. The mean WTP ranged from 6.6–7.47 thousand lira for special conservation activity. Two CVM questions, using a payment ladder format, were also posed, eliciting WTP for visiting the museum as is and for a special conservation fund for the museum. Excluding protest votes, the mean and median WTP for the visit were 7.46 and 6 thousand lira, and the mean and median WTP for the conservation fund were 16.99 and 16 thousand lira. The admission fee was 14 thousand lira. They estimate the potential direct revenue that could be generated by implementing these policy changes, in addition to the (seemingly very high) current admission charges. Link: http://www.unipv.it/websiep/wp/075.pdf

66. Bravi, Marina and Riccardo Scarpa. 1998. “Measuring WTP for cultural services

in Italian Museums: a discrete choice contingent valuation analysis.” paper presented at the Tenth International Conference on Cultural Economics, Barcelona, Spain, June 14-17, 1998.

67. Bravi, Marina, Riccardo Scarpa, and Gemma Sirchia. Forthcoming. “Measuring

WTP for cultural services in Italian Museums: a discrete choice contingent valuation analysis.” in Ståle Navrud and R. Ready, Valuing Cultural Heritage: Applying Environmental Valuation Techniques to Historic Buildings, Monuments and Artifacts. (Northampton, MA: Edward Elgar Publishing).

68. Frey, Bruno S. and Werner W. Pommerehne. 1989. Muses and Markets:

Explorations in the Economics of the Arts (Oxford: Basil Blackwell).

Frey and Pommerehne use the results of an actual referendum in Basle, Switzerland over the issue of whether the city should purchase and display two Picasso paintings. The survey passed 53.9% “yes” votes. The authors estimate two models to predict the voting: one based on narrow self-interest, and the other extended to include altruistic and bequest values. The narrow model predicts a vote of only 46.2% in favor, as opposed to 52.9% in favor with the extended model. They conclude that voting behavior demonstrates substantial altruistic, non-use values associated with the paintings.

69. Tohmo, Timo. 1998. “A contingent valuation study for the Central Finland Museum in Finland.” paper presented at the Tenth International Conference on Cultural Economics, Barcelona, Spain, June 14-17, 1998.

70. Barros, Carlos. 1998. “Willingness to Pay for Public Museums: Hypothetical and

Real Commitments.” paper presented at the Tenth International Conference on Cultural Economics, Barcelona, Spain, June 14-17, 1998.

HERITAGE 71. Navrud, Ståle and R. Ready. forthcoming. Valuing Cultural Heritage:

Applying Environmental Valuation Techniques to Historic Buildings, Monuments and Artifacts. (Northampton, MA: Edward Elgar Publishing).

Entire book dedicated to case studies employing CVM for diverse set of cultural goods, including English cathedrals, Bulgarian monasteries, rock paintings in Canada, statues in the U.S., and a medieval city in Africa.

72. Lockwood, Michael, Phillip Tracey, and Nick Klomp. 1996. “Analysing Conflict between Cultural Heritage and Nature Conservation in the Australian Alps: A CVM Approach.” Journal of Environmental Planning and Management 39(3): 357-370.

They report on a mail survey with 702 responses to WTP questions about grazing in the Australian Alps. The region has a long tradition of grazing, but many also recognize this lifestyle’s environmental damage. Half of the surveys asked for a WTP to stop grazing in the area, and half asked for a WTP to continue grazing while reducing its environmental impacts. The intent was to measure the values of the grazing tradition and of environmental conservation in the area. Hypothetical payments would be made to a trust fund operated by the Australian Heritage Commission. Valuations were elicited using a dichotomous-choice format. They estimate a mean WTP of $81 for continuing grazing and a mean WTP of only $33 for stopping grazing.

Link: subscribers can access it at

http://lucia.catchword.com/vl=1561759/cl=19/nw=1/rpsv/catchword/carfax/13600559/v39n3/contp1-1.htm

73. Mourato, Susana. 1997. “Effects of Air Pollution on Cultural Heritage: A Survey

of Economic Valuation Studies.” Paper prepared for United Nations Economic Commission for Europe Task Force on Economic Aspects of Abatement Strategies meeting, Madrid, December 1997.

74. Mourato, Susana and Alexi Danchev. 1997. Preserving Cultural Heritage in

Transition Economies: A Contingent Valuation Study of Bulgarian Monasteries. Report to DGXII, European Commission, Brussels.

75. Mourato, Susana and Alexi Danchev. 1999. “Preserving Cultural Heritage in

Transition Economies: A Contingent Valuation Study of Bulgarian Monasteries,” paper presented at ICCROM forum on Valuing Heritage, Beyond Economics, Rome, September 30-October 2.

76. Mourato, Susana and David Pearce. 1999. “Dealing with low willingness to pay

for cultural heritage: Statistical and policy implications.” Paper Presented at the

9th annual conference of the European Association of Environmental and Resource Economists, Oslo, June 25-27.

77. Boxall, Peter C., J. Englin, and Wiktor L. Adamowicz. “The contribution of

aboriginal rock paintings to wilderness recreation values in North America,” forthcoming in Journal of Environmental Planning and Management.

A summary of this paper should be available within 2 weeks.

78. Boxall, Peter C., J. Englin, and Wiktor L. Adamowicz. Forthcoming. “The contribution of aboriginal rock paintings to wilderness recreation values in North America.” in Ståle Navrud and R. Ready, Valuing Cultural Heritage: Applying Environmental Valuation Techniques to Historic Buildings, Monuments and Artifacts. (Northampton, MA: Edward Elgar Publishing).

79. Boxall, Peter C., J. Englin, and Wiktor L. Adamowicz. 1998. “Valuing

Undiscovered Attributes: A combined Revealed-Stated Preference Analysis of North American Aboriginal Artefacts,” paper presented at the World Congress of Environmental and Resource Economists, Venice.

80. Ozdemiroglu, Ece and Susana Mourato. 2001. “Valuing Our Recorded Heritage,

Final Report.” Paper presented to the Economic Valuation of Cultural Heritage Conference in the Department of Economics of University College London. (Mimeo. Department of Economics. University College London.)

This paper reports on the large survey project conducted by EFTEC. It describes the survey development process in detail. The project looks at the value of recorded heritage in the Surrey History Centre (SHC), a locally run archive. The paper presents the results of their pilot test of the survey, including 38 interviews of users and 22 of non-users. Their pilot survey used a payment ladder format to obtain WTP values to prevent two scenarios: (1) the closure of SHC and dispersal and possibly deterioration of its collections, and (2) the closure of the SHC to the public. Users expressed a mean and median WTP to prevent total closure of £34 and £20, respectively, and a mean and median WTP to prevent closure of access of £24 and £17.5, respectively. Non-users expressed a mean and median WTP of £13 and £10, respectively, regardless of whether scenario (1) or (2) was in question. Given the very small sample in the pilot survey, the results suggest that users perceive substantial existence value to the collection, whereas non-users see only option, altruistic, or bequest values.

Link: http://www.uni-hamburg.de/Wiss/FB/15/Sustainability/CCEMpaper.pdf

81. Economics for the Environmental Consultancy (EFTEC). 2000. Valuing Our

Recorded Heritage, Final Report. Report to the Museums and Galleries Commission, London.

82. Grijalva, Therese, Robert P. Berrens, Alok K. Bohara, and W. Douglass Shaw. 2001. “Testing the Validity of Contingent Behavior Trip Responses,” forthcoming in American Journal of Agricultural Economics.

Technically not a CVM study, this paper uses a “contingent behavior” approach that asks respondents to reveal their expected change in behavior due to a change in a public good (rather than their willingness to pay). The researchers then use a travel cost methodology to estimate the change in welfare from the proposed change in access rules for a world-class rock climbing site in Texas. Access was to be restricted to the Hueco Tanks to protect historical pictographs found on the boulders. The paper focuses on validity tests using survey data collected from a mail survey of 413 climbers at the site and another mail survey of 246 of those climbers a year later. The first survey asked about actual use of the site and two contingent behavior questions under restricted access scenarios. After the State of Texas restricted access, the follow-up survey asked about their actual use of the site after the rule change. The validity tests suggest climbers do not overstate changes. The consumer surplus per climber per season for open access is estimated at $1640, whereas the more restrictive access rules lowered this value to $364.

83. Grijalva, Therese, Robert P. Berrens, Alok K. Bohara, and W. Douglass Shaw.

2001. “Testing the Validity of Contingent Behavior Trip Responses” Mimeo. May 30, 2001.

Link:

http://www.ag.unr.edu/shaw/red_rocks/MS0167A%20second%20round.pdf

84. Frey, Bruno S. 1997. “Evaluating Cultural Property: The Economic Approach.”

International Journal of Cultural Property. 6: 231-246.

Although not an empirical study, this widely-cited article has a discussion of and literature review of CVM for cultural studies.

85. Maddison, David, David W. Pearce, and Marilena Pollicino. Forthcoming. in

Ståle Navrud and R. Ready, Valuing Cultural Heritage: Applying Environmental Valuation Techniques to Historic Buildings, Monuments and Artifacts. (Northampton, MA: Edward Elgar Publishing).

86. Hutter, Michael and Rizzo, Ilde, eds. 1997. Economic Perspectives on Cultural

Heritage. New York : St. Martin's Press. 87. Creigh-Tyte, Stephen and Barry Thomas. 2000. “Valuing the Historic

Environment: Some British Experience.” paper presented at the Eleventh Biennial ACEI Conference May 28-31, 2000. Minneapolis, Minnesota USA.

88. Mourato, Susana, Andreas Kontoleon, and Alexi Danchev. Forthcoming. “Valuing Cultural Capital as a Part of Sustainable Development - The Bulgarian Monasteries Case Study.” in Ståle Navrud and R. Ready, Valuing Cultural Heritage: Applying Environmental Valuation Techniques to Historic Buildings, Monuments and Artifacts. (Northampton, MA: Edward Elgar Publishing).

ARCHEOLOGICAL SITES 89. Riganti, Patrizia and Riccardo Scarpa. 1998. “Categorical Nesting and

Information Effects on WTP Estimates for the Conservation of Cultural Heritage in Campi Flegrei.” in Richard C. Bishop and D. Romano (eds.) Environmental Resource Valuation : Applications of the Contingent Valuation Method in Italy (Boston: Kluwer Academic Publishers).

This paper concerns an urban cultural heritage area in the city of Naples, known as the Campi Flegrei Archeological Park. A total of 448 in-person interviews were conducted by intercepting on-site and off-site respondents in Naples. They split the sample by giving half the respondents more background information. The survey elicited five different WTP responses for the following scenarios: conserving the entire Campi Flegrei area (continued restrictions on urban development), conserving only parts of Campi Flegrei not yet publicly available, conserving Campi Flegrei only for use by future generations, conserving only the Bagnoli area, and conserving only the Bagnoli area only for use by future generations. They elicited WTP answers using a dichotomous-choice format, where payments went to an independent conservation agency on monthly basis. The focus of the paper is using these questions analyze the nested values within the respondents’ total value for conserving the area. The estimated option and bequest values as well as values for a smaller part of Campi Flegrei. Their tests of internal consistency suggest that respondents did not recognize different scopes involved among the scenarios, but additional information did help them disentangle the complex goods in question. The authors note that their sample average WTP per household is approximately 420,000 lira ($216) per year.

90. Riganti, Patrizia. 1997. “Valuing cultural heritage a contingent valuation study

of the archaeological park at Campi Flegrei.” Discussion papers in urban and regional economics. Series C ; vol. IX (1996/97), no. 124 (Whiteknights, Reading, England: Center for Spatial and Real Estate Economics, Dept. of Economics, Faculty of Urban and Regional Studies).

91. Riganti, Patrizia. Forthcoming. in Ståle Navrud and R. Ready, Valuing Cultural

Heritage: Applying Environmental Valuation Techniques to Historic Buildings, Monuments and Artifacts. (Northampton, MA: Edward Elgar Publishing).

92. Beltrán, Ernesto and Mariano Rojas. 1996. “Diversified Funding Methods

in Mexican Archeology.” Annals of Tourism Research 23 (2): 463-478.

The authors conducted CVM interviews at three archeological sites in Mexico and in seven Mexican cities. The paper reports very little on the instrument design and sampling methods, leaving the specific good being valued unclear. They appear to obtain two WTP values, one for visiting Mexican archeological sites and one for a monthly contribution to preserving sites. Although their samples include 300 respondents at each of three sites and 5603 respondents in cities

around Mexico, they do not weight samples. Moreover, they drop those who do not claim to have visited a site in the past year, over 60% of their observations. Of those “visitors” interviewed in cities, mean WTP for visitation is estimated at between 14 and 21 new pesos ($4.04-$6.06), depending on the city. Of the visitors interviewed on site, mean WTP for consumption of archeological sites ranges from 8.8 to 23 new pesos ($2.54-$6.63), depending on the particular site and whether or not the visit occurred during the week or weekday. Interestingly, all weekday visitors are charged a flat fee of 13 new pesos, yet the mean WTP of weekday visitors to the rural site measured only 8.8 new pesos. This casts doubt on the validity of their instrument. The mean WTP for preservation ranged among the seven cities from 3.43 to 16.5 new pesos. The mean WTP for preservation ranged among the sites from 8.4 to 24.4 new pesos. The paper primarily explores revenue-maximizing pricing rather than aggregating valuation.

BROADCASTING 93. Papandrea, Franco. 1999. “Willingness to Pay for Domestic Television

Programming.” Journal of Cultural Economics 23(3): 147-164.

Papandrea estimates the value of domestic television programming content quotas in Australia. The TV questions were part of a nationwide, omnibus survey conducted in-person for 2193 usable responses. The survey asks attitudinal questions, informs respondents of the AU$120 per capita costs (in taxes and higher prices) of Australian TV programs, and asks if this amount should be increased, decreased, or kept the same. It asks for WTP to keep the amount of Australian TV programs the same in an open-ended format. The survey asks a dichotomous-choice WTP for a 10% increase in Australian programming, with an open-ended follow-up WTP question. Only 6.7% of respondents indicated a WTP of greater than $120, whereas 6.2% of respondents did not want to pay anything for Australian television programming. With nearly 70% of respondents choosing to retain current expenditures, the median and mean WTP values are AU$120 and AU$111.20, respectively. The median and mean WTP for a 10% increase in domestic programming was AU$12 and AU$12.40, respectively.


94. Papandrea, Franco. 1996. “Measuring Community Benefits of Australian TV Programs.” Bureau of Transport and Communications Economics Occasional Paper no. 113 (Canberra, Australia: Australian Government Publishing Services).

95. Papandrea, Franco. 1997. “Cultural Regulation of Australian Television

Programs.” Bureau of Transport and Communications Economics Occasional Paper no. 114 (Canberra, Australia: Australian Government Publishing Services).

96. Schwer, R. Keith and Rennae Daneshvary. 1995. “Willingness to Pay for

Public Television and the Advent of Look-Alike Cable-Television Channels -- A Case Study.” Journal of Media Economics 8 (3): 95-109.

This study examines the willingness to donate to the local PBS television station in Las Vegas, NV. Due to serious response-rate problems, the survey combined a telephone interview mode with its initial mailed questionnaire. The WTP question format was open-ended. The valuation question asked for the WTP of households to keep PBS in Las Vegas. With a response rate of 6.4%, they received 128 mail questionnaires. They added 101 interviews via telephone from among the original nonrespondents. The mean WTPs from the mail, telephone, and combined sample are $37.46, $11.48, and $25.29, respectively. There is a significant difference in WTP by survey mode. Nonresponse biased the WTP upwards significantly, implying that those favorable to PBS are more likely to response. Interestingly, the WTP among those with positive WTP values averages $38.56 annually, which is very close to the $35 annual membership

dues. They also note that preferring cable to public television is negatively related to WTP estimates, suggesting that PBS is facing pressure from private substitutes.

97. Schwer, R. Keith and Rennae Daneshvary. 1999. “The Impact of Casino

Gambling on Charitable Contributions: The Willingness to Contribute to a Local Public Television Station.” Review of Regional Studies 29 (1): 77-89.

98. Ehrenberg, Andrew and Pam Mills. 1990. “Viewers' Willingness to Pay – A

Research Report.” London Business School. Published as a supplement in Broadcast November 1990 (London: International Thompson Publications).

99. Bégin, Dominique, François Colbert, and Ruth Dupré. 2000. “Comparative

Analysis of French and French-Canadian Willingness to Support the National Film Industry.” International Journal of Cultural Policy 7 (2): 355-368.

The authors study the willingness to pay to support the commercial filmmaking industry in France and in Quebec. They use a convenience sample of randomly selected moviegoers to French or French-Canadian films in Paris and Montreal. They intercepted moviegoers before the movie began at 28 Parisian theatres and 24 theatres in Montreal. They interviewed 130 respondents in Paris and 123 in Montreal. (Their sampling obviously limits their ability to generalize from this sample to a larger population.) The film industry in Quebec is supported from general income tax revenues, while the French industry receives support from taxes on movie tickets, TVs, and video producers. The average WTP for an additional movie ticket tax to go to the national film industry was $1.25 in Quebec and $1.01 in France (doubling the current tax). When presented with their estimated contribution and the average taxpayer's contribution ($13.83) to the film industry through income taxes, 43% of the Quebec sample thought this to be satisfactory and 43% thought this was too low. The average WTP through income taxes was approximately $13.83. Only 11% of the French sample, presented with the fact that taxpayers pay 30 francs for their TV ownership tax, thought this too high. Those respondents willing to pay a larger TV tax gave an average WTP of 39.92 francs ($8.23) in addition to the current tax. The authors also report that "even those who are not willing to pay more would nonetheless accept an increase of 10.50 francs." Though the authors explain their sampling in some detail, they do not give many details of the survey instrument or design.

100. Jennings, Michael Ian. 2001. “Valuing Public Broadcasting in Ireland: The Contingent Valuation Method.” Complementary Paper to Postgraduate Seminar, 14 February 2001.

This paper, while not an original CVM study, does provide some background for his forthcoming graduate thesis, supervised by John W. O’Hagan, which estimates the value of RTÉ, the Irish public broadcaster. According to his pilot survey, Jennings will pose a hypothetical scenario where the annual license fee

charged Irish households and the RTÉ itself would be eliminated. He then estimates (in the form of increased utility bills) a WTP to preserve the RTÉ using either a payment-card format or an open-ended format. Preliminary details are available on his website. Link: http://www.economics.tcd.ie/jenningm/research.htm

101. Bohm, Peter. 1972. “Estimating Demand for Public Goods: An Experiment.”

European Economic Review 3: 111-130.

Swedish Radio-TV researchers brought 211 Stockholm residents to a lab for an hour “interview” about TV program, and paid 50 kroners ($10) up front. Participants were assigned to one of five different groups. Participants were then asked to give their WTP to watch a half-hour show by two popular humorists, knowing that the program would only be shown if the group’s summed WTP exceeded the Kr. 500 “costs” of showing it on closed-circuit TV. Prior to bidding the groups were told what they would actually have to pay. The five groups’ payment rules differed. Group 1 paid their bid values; Group 2 paid a percent of their bid; Group 3 paid either their bid, a percent of their bid, Kr. 5, or nothing, determined by a lottery; Group 4 paid Kr. 5; and Group 5 paid nothing. Each group except Group 3 were given specific instructions asking them not to behave strategically. The main finding of the study is that there were no significant differences among the responses to instructions for Groups 1 – 5. Two additional groups were also used. The first, Group 6.1, was simply asked for a WTP without any mention of costs or means of production. Group 6.2 was similarly asked for a WTP but told that only the top 10 bidders would get to actually watch it. The mean WTP for Groups 1 – 5 ranged from Kr. 7.29 – 8.84, and the median ranged from Kr. 5 – 7. Groups 6.1 and 6.2, however, expressed a mean WTP of Kr. 10.19 and Kr. 10.33, respectively. These values were only significantly different from Group 3. Bohm suggests that this casts doubt on the usefulness of using hypothetical (CVM) approaches, because Group 3 is the only treatment where “simple strategies for ‘cheating’ were absent.”

LIBRARIES 102. Harless, David W. and Frank R. Allen. 1999. “Using the Contingent

Valuation Method to Measure Patron Benefits of Reference Desk Service in an Academic Library.” College & Research Libraries 60: 56-69.

This CVM survey measures the WTP for reference desk services at the Cabell Library of Virginia Commonwealth University. They interviewed 170 students and 212 faculty members in person in 1997. They estimate mean WTP values for students and faculty for maintaining the current level of services at $11.18 and $45.76 per year, respectively (though it is unclear what the alternative was). This mean is given with 10% of the highest and lowest observations dropped. They estimate trimmed-mean WTP values in addition to their WTP for current services for students and faculty for an additional 18 service hours for the reference desk at $4.81 and $9.37, respectively. An additional 18.5 service hours generated mean WTP values of only $2.74 and $3.46 from students and faculty, respectively. The median values for each scenario are substantially lower than the trimmed means, implying some patrons reported very high WTP values.

103. Holt, Glen E., Donald Elliott, and Amonia Moore. 1999. “Placing a Value on

Public Library Services.” Public Libraries 38(2): 98-108.

This study values the services of the St. Louis Public Libraries using two versions of a survey. The first version posed a hypothetical scenario where the public libraries were all closed, and elicited “willingness-to-accept” (WTA) values in compensation. They found 88% of respondents with WTA values in excess of any reasonable level. Most users believed public libraries to be essential and should not be closed at any price. The second version of the survey asked a WTP into prevent the library closure via an increase in local taxes or fees. The authors only report the aggregated valuation: $136 million and $15 million for the WTA and WTP versions, respectively. (Information from Ozdemiroglu and Mourato, 2001.)

104. Aabø, Svanhild and Jon Strand. 2000. “Public Library Assessment and Motivation by Altruism.” Paper presented at the 11th Biennial ACEI Conference May 28-31, 2000. Minneapolis, Minnesota USA.

An omnibus nationwide survey in Norway included a CVM portion for public libraries. This paper reports on the existence of altruistic values and motives in the preliminary findings of the survey. A full report on the survey’s findings is forthcoming. Early indications suggest that altruistic motives account for a substantial portion of individual WTP for public libraries.

Link: http://www.dac.neu.edu/economics/n.alper/acei/aabo.pdf

105. Aabø, Svanhild. 1998. “Contingent Valuation of Public Libraries”, in Tenth International Conference on Cultural Economics, Barcelona 14-17 June 1998.

SPORTS 106. Johnson, Bruce K. and John C. Whitehead. 2000. “Value of Public Goods

from Sports Stadiums: The CVM Approach.” Contemporary Economic Policy 18(1): 48-58.

This paper reports on a CVM survey eliciting values for two different public goods: an improved college basketball arena and the construction of a minor league baseball stadium. The mail survey was returned by 230 Lexington, KY households. University of Kentucky basketball plays an important role in the local culture and quality of life, yet constructing a new arena was not generally believed to improve this good. The baseball stadium would attract a new baseball team to the town. The survey asked a dichotomous-choice WTP question, followed by a payment card question, for both public goods. The mean annual WTP for the basketball arena and for the baseball stadium were $5.26 and $3.92, respectively. The paper estimates use and non-use components of the WTP. They conclude relatively modest aggregate valuations for the two proposals.

Link: http://www3.oup.co.uk/coneco/hdb/Volume_18/Issue_01/pdf/180048.pdf

107. Johnson, Bruce K., Peter A. Groothius, John C. Whitehead. 2001. “The Value of Public Goods Generated by a Major League Sports Team: The CVM Approach.” Journal of Sports Economics. 2 (1): 6-21.

This study attempts to estimate the public good value of the Pittsburgh Penguins of the National Hockey League using a mail survey. With only a 35.6% response rate, they collected data on 293 Pittsburgh residents and supplemented this with surveys placed on cars parked at the Civic Arena during a Penguins game (16 of 200 were returned). Only 226 surveys were complete in all responses. The survey provided (accurate) background information on the Penguins: in 1998 the Penguins declared bankruptcy, and a federal judge then prohibited the Penguins from leaving the city, citing that they “are woven into the fabric of the city.” The hypothetical scenario posed had the new owners moving the team unless the city of Pittsburgh bought the team. The dichotomous-choice format question asked the WTP to keep the Penguins in (and owned by) Pittsburgh. A payment-card format question followed this. Numerous other questions tied the topic into the civic pride of Pittsburgh, which won the NHL championship in 1991 and 1992. They estimate a mean annual WTP of $5.57, of which $4.08 are non-use values. The aggregate non-market value of keeping the Penguins in Pittsburgh is substantial ($17 - $48 million).

108. Johnson, Bruce K., Peter A. Groothius, John C. Whitehead. 2000. “The Value of Public Goods Generated by a Major League Sports Team: The CVM Approach.” East Carolina University, Department of Economics, Working Paper 0014.

Link: http://www.ecu.edu/econ/wp/00/ecu0014.pdf

Contingent valuation studies in the arts and culture: an annotated bibliography

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