The valuation of heritage assets
DOI link for The valuation of heritage assets
The valuation of heritage assets book
Chapter 4 deals with the complex and controversial issue of the valuation of heritage assets as economic assets capable of generating income given appropriate investment in their management, protection, and conservation. While the process of estimation determines the value of a cultural or landscape good, the mechanisms of competition and negotiation determine its price. Often, the value and price of a cultural or landscape good do not coincide. For this reason, Chapter 4 initially examines the difference between the price and value of a cultural and landscape asset and then outlines the main methodologies used to value such heritage assets. In this respect, it should be noted that the value of a culture or landscape good is not only economic but also social and cultural; therefore, its value – or ‘sensual side’ – is difficult to measure. Moreover, the cultural or social benefits it can generate for the community are difficult to quantify from an economic point of view and not necessarily quantitatively identified in the value or price of the asset considered. Notwithstanding these challenges, it seems safe to assume that a public or private entity would be motivated to invest in a given cultural or landscape asset (to secure its protection, preservation or enhancement) as long as the asset is at least potentially able to generate some benefit (economic, social, scientific or cultural) for its shareholders or stakeholders. It is therefore clear that the assessment of heritage assets, while complex and slippery, is of absolute importance for a multitude of subjects, such as public contributors, local residents, public or private investors or administrators of the public or private entities.