The Effects of Contamination and Cleanup on Commercial and Industrial Properties: A Hedonic Pricing Model of Maryland and Baltimore City

This paper applies the travel cost method to visits to cultural sites in Armenia by domestic visitors. Respondents intercepted at four cultural monuments provided information on their visitation patterns, experience at the site, perception of the state of conservation of the monuments, and rating of the quality of the services and infrastructures. We combine actual trips with stated trips under hypothetical programs that would enhance the conservation of the monuments and improve one of (i) the cultural experience at the site, (ii) the quality of the infrastructure, or (iii) the quality of the services, and use the combined actual and stated trips to fit a panel data model. Our investigation shows that that there are significant use values associated with the four study monuments, and that conservation programs and initiatives that improve the cultural experience, or simply make it easier for the respondent to reach and spend time at the monument, are valued by domestic visitors and would encourage higher visitation rates.

The Value of Cultural Heritage Sites in Armenia: Evidence from a Travel Cost Method Study

This paper applies the travel cost method to visits to cultural sites in Armenia by domestic visitors. Respondents intercepted at four cultural monuments provided information on their visitation patterns, experience at the site, perception of the state of conservation of the monuments, and rating of the quality of the services and infrastructures. We combine actual trips with stated trips under hypothetical programs that would enhance the conservation of the monuments and improve one of (i) the cultural experience at the site, (ii) the quality of the infrastructure, or (iii) the quality of the services, and use the combined actual and stated trips to fit a panel data model. Our investigation shows that that there are significant use values associated with the four study monuments, and that conservation programs and initiatives that improve the cultural experience, or simply make it easier for the respondent to reach and spend time at the monument, are valued by domestic visitors and would encourage higher visitation rates.Valuation of cultural heritage sites, Non-market valuation, Travel cost, Consumer surplus, Contingent behavior

Valuing the Cultural Monuments of Armenia: Bayesian Updating of Prior Beliefs in Contingent Valuation

We use contingent valuation to place a value on the conservation of built cultural heritage sites in Armenia. When we present the hypothetical scenario in the questionnaire we spell out what would happen to the monuments in the absence of the government conservation program. We posit that respondents combine such information with their own prior beliefs, which the questionnaire also elicits, and that the WTP for the good or program is likely to be affected by these updated beliefs. We propose a Bayesian updating model of prior beliefs, and empirically implement it using the data from our survey. We find that uncertainty about what would happen to the monument in the absence of the program results in lower WTP amounts.Valuation of Cultural Heritage Sites, Non-Market Valuation, Contingent Valuation, Bayesian Updating, Prior Beliefs

What are the Effects of Contamination Risks on Commercial and Industrial Properties? Evidence from Baltimore, Maryland

Using the hedonic pricing approach, we investigate how the information released on public registries of contaminated and potentially contaminated sites affects nearby commercial and industrial properties in Baltimore, Maryland. We find that commercial and industrial properties are virtually unaffected by proximity to a site with a history of contamination. Knowing that the site is no longer considered contaminated does not have a rebound effect on property prices either. We also find that urban economic development policies, such as Empowerment Zones and Enterprise Zones, have little effect on property values. In sum, brownfield properties in Baltimore are not particularly attractive investments for developers, and there is little potential for self-sustaining cleanup based on appropriate fiscal incentives, such as Tax Increment Financing. It is doubtful that “one size fits all” measures to encourage the cleanup of contaminated sites can be successful in this context.Contaminated sites registries, Distance to contaminated sites, Hedonic pricing model, Brownfields

The Value of Cultural Heritage Sites in Armenia: Evidence From a Travel Cost Method Study

This paper applies the travel cost method to visits to cultural sites in Armenia by domestic visitors. Respondents intercepted at four cultural monuments provided information on their visitation patterns, experience at the site, perception of the state of conservation of the monuments, and rating of the quality of the services and infrastructures. We combine actual trips with stated trips under hypothetical programs that would enhance the conservation of the monuments and improve one of (i) the cultural experience at the site, (ii) the quality of the infrastructure, or (iii) the quality of the services, and use the combined actual and stated trips to fit a panel data model. Our investigation shows that that there are significant use values associated with the four study monuments, and that conservation programs and initiatives that improve the cultural experience, or simply make it easier for the respondent to reach and spend time at the monument, are valued by domestic visitors and would encourage higher visitation rates.

Public Preferences for Land uses’ changes - valuing urban regeneration projects at the Venice Arsenale

This paper discusses the results of a conjoint analysis study developed to assess alternative land uses for an important part of the city of Venice: its Arsenal. Aim of the study is to illustrate the potential of stated preferences techniques for placing a value on redevelopment and reuse alternatives for an underutilized site with high historical, cultural and architectural significance. Very few studies have used conjoint choice to assess public preferences for alternative land uses in an ex-ante framework, i.e. masterplans. For our study, we wanted to concentrate on a “city of art,” where the relationship between cultural heritage resources management and city development is more critical. Venice was an obvious choice for the national and international relevance of its heritage. The Arsenale is one of the few places in Venice that has the potential for a real transformation of its uses, with important impacts on both residents and visitors. Moreover, the Arsenale plays a strong symbolic role: it was the place where the strength and power of the Serenissima was built. The City Council of Venice has recently deliberated that the Arsenale is an inalienable heritage of the city of Venice. In recent years, the importance of the Arsenale has resulted in a heated debate on its possible new uses. Many architectural proposals have been submitted through international competitions. These proposals—whether submitted in the past or currently under consideration—have shown that there may be a conflict between different possible land uses and the transformation allowed by the existing architectural structures. We surveyed individuals in Venice asking respondents to engage in conjoint choice tasks, gathering 168 usable observations. Members of the general public were intercepted at the Multimedia Library at Palazzo Querini Stampalia/FEEM and asked to indicate which choice they preferrd among hypothetical—but realistic—redevelopment projects of the Arsenale historic site. Each project was described by a vector of attributes, such as land use, use of basins and waterways, architectural features, access, employment implied by the reuse, and cost. The responses to these choice tasks was used to infer the rate at which respondents trade off land uses, aesthetic features, and costs, and hence to derive the value of marginal changes in the attributes, and the value of a proposed policy package. The Venice Arsenale is owned by the Italian government and is currently used by the Italian Navy. The Arsenale site accounts for about 15 percent of the area of the city of Venice (about 45 hectares), and is located in the Castello district. Tradition has it that doge Ordefalo Falier founded the Arsenale—a shipbuilding yard—in 1104. In 1340 the “Darsena Nuova” was created, which marked the birth of the Arsenal Nuovo and of the Corderie building. Further expansion started in 1473, covering an area of 26 hectares. This phase lasted more than 100 years, resulting in the construction of the New Corderie building, among others, in 1591. In its heyday, the Arsenale employed roughly 20,000 workers in an assembly-line fashion and produced one ship a day. The Arsenale, after the navy largely withdrew from the complex over 40 years ago, suffered from abandonment and under use. The Arsenale is, therefore, one of the few places in Venice that has the potential for a real transformation of its uses. In this paper we investigate how the development of the Arsenale site, involving alternative land uses, may influence the welfare of the residents of the historical city center of Venice. Starting from the evidence of our survey in Venice, the paper broaden its scope to discuss ways of improving the management of cultural heritage cities, focusing on new forms of involvement and public participation based on public preferences’ elicitation. We debate the issues related to city governance and the need for an appropriate level of democratic participation. An integrated approach, capable of bridging the practice of economic valuation, urban design, conservation of the built environment, and decision-making support systems is here analysed.

Smart Meter Devices and The Effect of Feedback on Residential Electricity Consumption: Evidence from a Natural Experiment in Northern Ireland

Using a unique set of data and exploiting a large-scale natural experiment, we estimate the effect of real-time usage information on residential electricity consumption in Northern Ireland. Starting in April 2002, the utility replaced prepayment meters with “smart” meters that allow the consumer to track usage in real-time. We rely on this event, account for the endogeneity of price and plan with consumption through a plan selection correction term, and find that the provision of information is associated with a decline in electricity consumption of up to 20%. We find that the reduction is robust to different specifications, selection-bias correction methods and subsamples of the original data. At £15-17 per tonne of CO2e (2009£), the smart meter program delivers cost-effective reductions in carbon dioxide emissions.Residential Energy, Electricity Demand, Feedback, Smart Meter, Information

Using Surveys to Compare the Public’s and Decisionmakers’ Preferences for Urban Regeneration: The Venice Arsenale

In this paper, we illustrate how surveys can be used to elicit the preferences of the public and of policymakers and city officials for regeneration projects at urban sites. Our methodology uses rating exercises, coupled with conjoint-choice stated preferences for the general public and with ranking exercises for the public officials and other stakeholders, and is then applied to investigate alternative reuses of the Venice Arsenale, Italy, and their economic, environmental and social impacts. One interesting feature of the conjoint choice questions for members of the public is that the responses to these questions can be used to estimate the social benefits of regeneration projects, i.e., how much people are willing to pay for these urban transformations. Another advantage of our approach is that it can be used seek and foster broader public participation into urban decisionmaking processes.Land Use, Decision-Making, Cleanup, Sustainable Development, Local Economic Development, Choice Experiments

Information and Willingness to Pay in a Contingent Valuation Study: The Value of S. Erasmo in the Lagoon of Venice

This paper reports on a contingent valuation study eliciting willingness to pay for a public program for the preservation of lagoon, beach and infrastructure in the island of S. Erasmo in the Lagoon of Venice. A referendum dichotomous choice approach with a follow-up question is used to obtain information about willingness to pay from a sample of residents of the Veneto Region in Italy. We use split samples to investigate the effect of providing different levels of information to respondents before asking the payment questions. Our experimental treatment is a reminder of possible reasons for voting in favor or against the proposed program before the referendum question. We find that reminding respondents of the reasons for voting for or against the public works increases WTP among less highly educated respondents, and decreases WTP among more highly educated respondents.Contingent valuation, Effects of information

The Role of Liability, Regulation and Economic Incentives in Brownfield Remediation and Redevelopment: Evidence from Surveys of Developers

We examine different market-based mechanisms and other incentives intended to promote the environmental remediation and reuse of brownfields. Policies that encourage cleanup and re-use of brownfields offer real estate developers reductions in regulatory burden, relief from liability for future cleanups once certain mitigation standards are met, and/or financial support for regeneration of brownfields. We use conjoint choice experiments—a stated preference approach—to assess the responses of real estate developers to different mixes of these incentives. Our survey instrument was administered in person to a sample of developers and real estate professionals randomly intercepted at the Marché International des Professionnels de l’Immobilier (MIPIM) in Cannes, France, in March 2002. Conditional and random-coefficient logit models of the responses to the choice questions indicate that developers find sites with contamination problems less attractive than others, and that they value liability relief. This confirms our expectation that contaminated sites are less desirable because of the associated cleanup costs, but refutes earlier claims that liability does not matter. Our developers are not deterred by prior contamination, once it has been cleaned up, suggesting that “contamination stigma” is not very important, and appreciate fast-track review of development and remediation plans, direct financial incentives, and flexible (negotiable) cleanup standards. Developers with prior experience with contaminated sites are more responsive to the policies than are nexperienced developers, especially for subsidies. Inexperienced developers are more responsive to liability relief and regulatory relief than they are to subsidies. Similar considerations hold true for larger developers.Brownfields, contaminated sites, real estate developers, stated preferences, conjoint analysis, liability relief, regulatory relief, subsidies