Economic analyses explaining historic preservation: The impact of social and economic values.

Historic resources are important to society due to their historic, educational, tourism and community values. In order to preserve and maintain these resources for current and future generations, understanding human interactions and values are important. For that purpose, this dissertation utilizes economic tools and techniques to identify factors that influence historic values, quantifies economic values of the general public regarding historic preservation, and evaluates role of property rights in historic preservation decisions. Three essays are presented in this dissertation: essay I explores the demographic and location characteristics as factors that influence historic preservation through listing in the National Register of Historic Places; essay II estimates the economic value of historic integrity using contingent valuation methodology; and essay III employs benefit-cost analysis to address policy implications of a privately owned historic building preservation, and assesses the impact of alternate property right scenarios with additional social values. In essay I, listings of historic places in the National Register are used as indicators of historic preservation efforts in West Virginia. The objective of this essay is to examine county-level socio-economic and location factors that influence the number of listings of historic resources, and the rate of historic house listings in the National Register. Demographic variables include income, education, urban influence, unemployment rate, median age and, presence of more than one historic preservation organization as factors associated with the preservation listing. In addition, location variables such as distance from the major road networks and number of older houses in the county are also considered in the analysis. Results suggest income, urban influence in the county, presence of more than one historic organization, and number of older houses in the county has positive influences on the number and rate of historic listing. The unemployment rate in the county has a negative relationship with the number of listings and the rate of listing in the Register. There was no measured spatial correlation among counties. Essay II utilizes a case study of an agricultural mill (Reckart’s Mill) in Preston County, West Virginia and a relocation proposal to evaluate the value of historic integrity to the general public. The essay quantifies the economic value and assesses the attitude, knowledge, and demographic variables that influence such values. The total economic value of preserving the historic mill at its original location was estimated to be {dollar}91,000 on average. Willingness to pay to keep the mill at its original location was estimated at {dollar}8.45 per household among the sample and {dollar}2.29 per household when adjusted for the complete local population as a one time donation. Finally, essay III utilizes benefit-cost analysis for evaluating preservation of Reckart’s Mill at its original location under three different ownership scenarios of private, private with public support and public. The benefit-cost analysis is further developed using sensitivity analysis to investigate results at different discount rates and under base plus high levels of visitation. The results from the benefit-cost analysis show that under the base case, net present value (NPV) is always negative for any ownership. Positive NPV are found only under high levels of visitation for scenarios of private with public support and for public ownership with a high discount rate. NPV is always negative for private ownership. The economic methods employed in these studies contribute in terms of methodology and provide a decision support process for preservation of historic places and aid in historic resource management. All three papers share a common theme of how a decision to preserve historic resources is influenced by the perceived benefits and costs to the society. The benefits and costs are influenced by various demographic and location variables as well as values generated through preservation. Issues addressed in this dissertation could assist local government agencies, community leaders, non-profit organizations, and private owners to evaluate present and future preservation decisions. Specifically, the first essay can be utilized to prioritize counties in terms of preservation efforts. The second essay generates awareness regarding historic integrity in decisions to alter historic sites. Finally, the third essay examines the role of property rights in preserving privately owned historic sites. The methods and results may also be applied to the other historic resources with national and international significance