Topic Economic valuation method of heritage and suggestions for ham rong - Nui do heritage ecosystem - Thanh hoa province

Nội dung text: Topic Economic valuation method of heritage and suggestions for ham rong - Nui do heritage ecosystem - Thanh hoa province

1. controversial matter and still been discussed until now. However, the model of neoclassical economy has solved the problem clearly, by determining the value derived from personal interests. Value is something that consumers are willing to pay in return for certain goods or services. Consumers always know how to maximize their benefits rationally through exchange processes in perfect markets. Even if the market fails, for example, in the case of a public goods, it is still possible to measure their values, that is the willingness to pay of individual consumers to express the value of the mentioned goods. Therefore, when we think about the economic value of heritage in this model, we are thinking about the kinds of values which individuals recognize and are prepared to pay in one way or another. Categories in which the value of heritage can be classified under these terms are well known and clearly stated in the heritage economy. Types of values correspond to the way in which individuals experience heritage, or by using directly or indirectly. Based on the approach of environmental economics and the approach of heritage economists, we can determine the values of the heritage ecosystem through the following diagram: Total economic value of heritage Use value Non-use value Direct use Indirect use Option Preserving Existence value value value value value Tangibility of blocks of diminishing values Figure 1. Components of economic values of heritage ecosystem Direct use value is the cumulative value for individuals, households or businesses through direct consumption of heritage services. It can be experienced in a variety of ways, for example through heritage property ownership, or by enjoying the services of an asset of a heritage by living in a heritage house or working in a heritage building; such values are reflected in market prices, and can be observed, for example, in actual rental values or rental values of heritage buildings used as living houses or commercial facilities. Indirect use value is the value which heritage brings to many subjects and is the secondary impacting value of heritage conservation. For instance, restoring 436
2. Cost $ A = Consuming surplus B = Total cost of visit C = Benefits of heritage conservation project c A TCo B Vo V1 Number of visits Figure 2: Entertainment demand curve and consuming surplus There are 3 basic approaching method in the Travel Cost Method: Zonal Travel Cost method (ZTCM), Individual Travel Cost Method (ITCM), and Random Utility Approach. The ZTCM is the popular and easy one to apply for many heritages, even for those with low visiting frequency. 2.2. Hedonic Pricing Method Hedonic Pricing Method uses statistics to identify correlation between price fluctuation of market-priced products and changes in relating environmental convenience. For example, after having the project of restoring heritage, the value of that heritage itself and the more beautiful landscape make the real estate prices go up where people prefer to live. This change can be measured to quantify effective impacts of the project on the heritage value. Steps: • Identify the value needs valuating • Gather data on the asset’s price before and after conducting the project • Select model and valuating functions • Estimate parameters and the contribution of the heritage in the real estate’s value. For accurate analysis, a large amount of data is required, covering the factors that govern the value and characteristics of the attributes involved in a period in the form of value function data. The main advantage of this method is that it is possible 438
3. Step 3: Receiving paid prices After the construction of the contingent market, the researcher can conduct a survey by face-to-face interview, phone interview or mailing. The purpose of the survey is to determine the maximum Willingness To Pay (WTP) of the survey sample for improving the quality of the heritage or the minimum Willingness To Accept (WTA- Willingness To Accept) for heritage loss. To collect information about WTP / WTA, the following ways may be used: - Open - ended question: Ask questions directly to the interviewees such as "How much are you willing to pay for the preservation of Dong Son heritage?" The result obtained by this method is number continuous data has a great variation. - Payment Card: Provide a table of different payment willingness levels for the interviewee to choose a level. The results of this method are random payment willingness levels. - Bidding game: Offering a price, if the respondents accept, continue to increase the price until they are not willing to pay, then stop. The price obtained by this interview is usually highest because the interviewee may overestimate the value of the property. - Single bounded: Only ask for opinions on a fixed price for a respondent and use different prices to ask different people. For example, "If the service is provided at the price of $ xx, do you care and accept?" - Double-bounded: The interviewer firstly offers a price to know whether the respondents are willing to pay or not. If they are, double the price, and if they are not, halve the price. The obtained numbers from this method is the paying range of respondents. Step 4: Calculating the average WTP Calculating the average and median of paid prices after eliminating irrational answers. Step 5: Analyzing factors influencing WTP The purpose of this step is to examine the factors affecting WTP. Therefore, WTP is considered an explained variable and we need to define the regression function for a series of explanatory variables such as income, gender, age, educational level, etc. Step 6: Aggregating data for determining the total WTP Aggregating data to determine the total willingness to pay or willingness to accept of all individuals at the study site for the value of a heritage or a certain 440
4. (Mogas, 2006). Then, the probability that the “i” individual likes “j” option more than n other options in the solution set is understood that the probability of benefit from “j” option is greater than the probability of benefit from the other options. This method allows us to select multiple options through repeatable attributes and scenarios (instead of having trade-offs as in CVM), allows us to verify according to the logical framework so that those who answers will reveal quite exactly their interests. This approach goes into specific problems instead of abstract issues in the CVM method, provides more information and increases practicality, creates an attraction for respondents. Steps • Determine the value of heritage needing valuation • Determine sample and subjects needing analyzing • Create contingent scenarios (experts) • Group discussion for questionnaires • Tests for completing the questionnaires • Develop the calculating model • Field investigation • Handle data and estimate model (fix errors) • Calculate sample’s value and make generalization For example, to determine the willingness to pay for the preservation of a natural heritage site, different attributes of that region are given for different uses, each of which will be divided into different level. Then we proceed to ask for personal opinions to know their choices. Based on the survey results, they will know what values people want to protect and the total amount of money they accept to preserve that heritage. 3. Suggestions for valuating of Ham Rong - Nui Do Heritage (Thanh Hoa) 3.1. Subject of valuation Ham Rong-Nui Do heritage is considered a heritage ecosystem with layers of heritage classes, from natural heritage to cultural heritage, from poetic heritage to spiritual heritage. All converge in this area and it has a continuation of cultural inheritance over many periods. However, many relics and heritage have been lost and even forgotten. Restoring values of the heritage will bring great benefits including economic benefits. 442
5. 3.2. Valuating model and data requirement The following table describes how the above value types can be determined and the required data to collect for the valuating process. Table 1. Requirements on data, hypothesis for types of use value and nonuse value Types of Valuating Measuremen Note and Necessary data value technique t value hypothesis Direct use On-site In terms of direct value valuation for The total valuation: Market prices (directly market annual value Market price at represent real exploited products uses of each the point of each value in the from the actual value. product / product. market with a heritage) For goods that service is Quantity of competitive are used produced or goods harvested, market at directly, use supplied from sold, given away equilibrium market value the heritage and used in (prices are not for the area. households distorted). respective In terms of All externalities goods. If not indirect are identified and suitable, use a valuation: included in the indirect Unit price for price. opportunity corresponding cost approach goods. to assess the Cost of input time used to materials harvest Time to use to through create products. income Chi phí lao động levels. địa phương tương ứng. Corresponding local labor costs. Exchange rate Year (data collection date) 444
6. 4. Conclusion Valuating the value of heritage is a new field for Vietnam and the world. In the world, the valuation is usually done for each heritage (temple, pagoda, natural landscape), there are few cases of valuating the value of a heritage ecosystem with many types of heritage in one narrow geographical area. The approach to economic valuation of the heritage ecosystem in Ham Rong - Nui Do area may stem from the valuation of the economic value of natural ecosystems due to the similarities in natural capital and cultural capital values. By the method of single valuation for each type of value we can sum up to get a picture of the total economic value of the heritage. Economic calculations will raise a voice to the economic value of heritage and the necessity of restoring heritage to managers. Although it is still quite new and lacking in data, we can affirm that the valuation of value of heritage ecosystems can be successful in Vietnam based on valuating methods applied worldwide and experimented in natural ecosystems in Vietnam. 5. References 1. Andy S. Choi, Brent W. Ritchie, Franco Papandrea, Jeff Bennett, 2009, Economic valuation of cultural heritage sites: A choice modeling approach, Tourism Management; 2. Andrea Báeza, Luis César Herrerob, 2011, Using contingent valuation and cost- benefit analysis to design a policy for restoring cultural heritage. 3. Herdis Hølleland, Joar Skrede & Sanne Bech Holmgaard, 2017, Cultural Heritage and Ecosystem Services: A Literature Review, Conservation and Management of Archaeological Sites, 19:3, 210-237, DOI: 10.1080/13505033.2017.1342069 4. John Armbrecht, 2013, Use value of cultural experiences: A comparison of contingent valuation and travel cost, Tourism Management. 5. Dinh Duc Truong, Le Ha Thanh, 2013, Valuation of Resources and Environment, from theory to practice in Vietnam, Vietnam Development Forum VDF. 6. Do Nam Thang, Nguyen Quang Hong, Pham Khanh Nam, Mai Thi Thu Hue, Nguyen Thị Thu Thao, Tran Bich Hong, 2011, Guides on cost-benefit analysis of projects conservation of diversification at some National Park, Judicial Publication. 446