Himeji Castle , also called the white Heron castle , Japan . This is a UNESCO world heritage site .
The Economics of Heritage - environment . com . au
The importance of heritage lies in the benefits or values it generates . These are typically divided into “ use ” and “ non-use ” values . Use values are those benefits derived from the direct or indirect use of a heritage site . They may include :
● financial benefits ;
● aesthetic qualities ;
● improved community image ; and
● the opportunity to use the site for residential , commercial , tourism , recreation or social purposes .
Non-use values are the intangible benefits associated with the preservation of heritage . These are :
● existence value : the benefits associated with the knowledge that a heritage site has been conserved , even if consumers do not intend to visit it themselves ;
● option value : the benefits derived from having the option to visit a heritage site in the future ; and
● bequest value : the value gained from knowing that a heritage site can be bequeathed to future generations .
The economic case for Government intervention in heritage lies in the community-wide nature of many of these benefits . The aesthetic quality of a building ’ s heritage facade , for example , will be of value to passers-by as well as to the building ’ s owner . In economic terms , these benefits are positive externalities or public goods . Externalities are “ spill-over ” effects from a market transaction which affect the welfare of others . If a spillover effect is of a beneficial nature , such as the community ’ s aesthetic enjoyment of a privatelyowned heritage property , it is said to be a positive externality . Public goods are community benefits which are non-excludable and non-rivalrous . This means that no person can be excluded from their
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