Non-market benefits of creative cultural projects in post-quake revitalization regions: A case study of the Nantou Jiji Station area

Abstract

In contrast to previous post-quake revitalization initiatives in which urban redevelopment is emphasized, cultural projects and their non-market benefits have recently garnered increased attention. In the past, when post-quake revitalization cultural projects were evaluated, the non-market benefits of these projects were not considered. Consequently, we have adopted a contingent valuation method (CVM) as a process that can evaluate the non-market benefits of cultural projects. This article reports research on Jiji Township, which is the epicentre of the most severe earthquake recorded in Taiwan in the past 50 years. The study’s results verified that creative cultural projects generated numerous non-market benefits, and that local identity value is the key factor influencing residents’ valuation of the projects and the amount they are willing to pay. This study proposes an economic valuation process that helps establish a method for promoting creative cultural projects based on residents’ opinions and needs.

Keywords

contingent valuation method (CVM)cultural economics cultural projects non-market benefits post-quake revitalization

In recent years, numerous researchers have argued that culture can effectively enhance local economies and improve societal conditions (Bassett et al., 2005). In addition, influenced by the creative city theory, culture and art were seen as increasingly critical for regions undergoing post-quake revitalization. In particular, since the Great Hanshin Earthquake in 1995, Japanese officials have gradually incorporated cultural and art features into programmes for post-quake regions, creating novel culture-oriented lifestyle activities known as ‘creative revitalization’. In the present study, creative projects assimilating culture are referred to as creative cultural projects. Ever since the 2011 Tōhoku earthquake, creative cultural projects have received increased attention because these projects not only involve economic benefits but also bring non-market benefits to post-quake regions.

Previously, in discussions related to cultural economics, arts and culture have been regarded as goods (Ikegami, 2001). During these discussions, economic values, as well as non-market benefits that cannot be evaluated using monetary terms, are believed to be aspects requiring immediate attention (Baumol and Bowen, 1966). Thus, if arts and culture can yield public goods and external non-market benefits, then leveraging the creative cultural projects that feature culture should also generate similar benefits.

However, when culture begins to play a vital role in resolving problems in post-quake regions, what types of values or cultural projects should be incorporated in post-quake revitalization projects to meet local requirements? Who should be the target of such projects? Who will benefit from the projects? These concerns are critical for resolving problems in post-quake regions (Agency for Cultural Affairs, 2012). Nevertheless, we argue that these concerns are all related to non-market benefits. Thus, a valuation framework must be developed to assess the potential non-market benefits of creative cultural projects. These benefits can then be quantified using statistical techniques, providing policy makers with a basis for determining which benefits should be maintained or enhanced in accordance with policy goals.

Attempting to evaluate the benefits that cannot be quantified as data is a crucial topic in cultural studies (Tomooka, 2010). Cost-benefit analyses (CBA) for non-market benefits include the travel cost method (TCM), the hedonic pricing method (HPM) and the contingent valuation method (CVM), of which the CVM is widely used to evaluate non-market goods (Goulder and Kennedy, 1997). Compared with other similar methods, only CVM can be used to directly evaluate the use and non-use values of goods when market prices are not present. Creative cultural projects are not tradable goods, and no market-related data for such projects are available; therefore, CVM should be effective for evaluating creative cultural projects.

In this study, the creative cultural projects implemented in the surrounding areas of Jiji Station in Jiji Township, Nantou were explored. Jiji Township is the epicentre of the most severe earthquake recorded in the past 50 years in Taiwan. We expect to achieve the following objectives: (a) to investigate the process by which creative cultural projects are promoted in this post-quake revitalization region and the topics involved, and to explore the values of such projects; (b) to delineate how CVM is used to evaluate the non-market benefits that these projects may provide to local residents; and (c) to provide suggestions regarding how future creative cultural projects can be promoted through a bottom-up approach to fully satisfy the needs of local residents.

Background

Cultural-based creative cultural projects in post-quake revitalization regions

The phrase ‘creative cultural project’ proposed in this study is closely related to Japan’s cultural arts policies, which are infused with the concept of the creative city. For instance, Yokohama in Japan has advocated that creative cultural projects must centre on cultural arts, using creative events to create new value. Moreover, the Japanese government has encouraged residents to participate in cultural arts activities, thus forming a novel regional society. Similarly, Sendai city has created an environment that promotes creative cultural projects which provides residents with opportunities to publicize their creative works, thereby enhancing residents’ creativity. In Taiwan, Lin (2009) asserted that creative cultural projects must be established based on the historic cultural context of a region to serve as a basis for the governance of city innovation. Therefore, keywords such as ‘culture’, ‘creativity’, ‘region’ and ‘public participation’ are integral to activating a cultural creative project.

Unlike Europe and the Americas, Asian countries have experienced earthquakes since the 1990s. Therefore, the process of post-quake revitalization has evolved as urban concerns intensify. Influenced by the creative city theory proposed in the 1990s, government officials of many cities have endeavoured to promote urban regeneration by utilizing cultural concepts. This approach has influenced the post-quake revitalization processes pursued in the 1990s in Asia. Extensive discussions on cultural initiatives featured in post-quake revitalization projects have been held in Japan.

Following the Great Hanshin Earthquake, cultural projects became an integral part of resident activities (Hayashi, 1997), serving a crucial role in post-quake revitalization. For example, in Kobe city, music and artworks were used to encourage citizens, and culture was considered a crucial factor of post-quake revitalization. Such efforts were not aimed at restoring the city, but regenerating the city, based on the concept of ‘creative revitalization’. However, previous creative revitalization efforts, involving large-scale urban developments conducted within a globally competitive environment, saw numerous projects deviate from the theory of the creative city that emphasized local culture and tradition. As a result, roads, harbours and airports were constructed, but a creative lifestyle for residents was not necessarily achieved (Ikeda, 2007).

However, in the present study, we found that after the 2011 Tōhoku earthquake, Japan gradually modified its old revitalization pattern in which economic growth was emphasized. The importance of culture in post-quake revitalization following the 2011 Tōhoku earthquake garnered the attention of government officials, who believed that local residents are the primary agents of revitalization (Kurahara, 2013). Numerous artists and cultural arts groups have visited disaster areas and re-thought the relationship of culture in communities to host cultural projects or events that provide psychological care and cultural education (Mogi and Fujiwara, 2014). Diverse cultural patterns became the key to initiating revitalization efforts; for example, gathering local residents through cultural projects is beneficial for maintaining and coordinating a community and promoting resilience among disaster victims. Compared with cultural projects, economic activities were frequently prioritized in post-quake revitalization efforts. Nevertheless, the effects of cultural projects should not be underestimated (Deguchi, 1999).

Cultural projects held during post-quake revitalization processes include (a) hosting cultural performances and exhibitions in post-quake regions; (b) caring for psychologically distressed children; (c) recovering tangible and intangible cultural resources; and (d) establishing new cultural projects that can be embedded in post-quake regions (ACCR, 2012). The creative cultural projects focused on in this study belong to the fourth category. Creative cultural projects can be categorized into the following groups according to their characteristics: (a) revitalization policies based on culture, which are integrated with other types of policies (e.g. industrial revitalization, tourism, environmental protection, and education) to promote urban regeneration or community building policies; (b) policies that emphasize using local resources in creative industries to boost local economies; (c) policies encouraging cooperation among administration departments and private enterprises, non-profit organizations, citizens and universities to promote urban regeneration or community building; and (d) other creative strategies unrelated to the aforementioned policies (Ueno and Suzuki, 2013).

In post-quake regions where revitalization projects have been implemented, new forms of cultural arts activities, which are characterized by creative cultural policies and can be deeply embedded in a region, have been introduced. In reference to the aforementioned policies and extant research analyses, this study defined this new type of cultural arts activity as creative cultural projects implemented during post-quake revitalization, thus providing an explicit definition for the research focus of this study.

The non-market benefits of creative cultural projects

Cultural economics posits that arts and culture are associated with quasi-public goods, which exhibit the characteristics of public and private goods. Moreover, culture possesses use and non-use values, which are the theoretical basis for financially supporting cultural projects (Goto, 2001; Ikegami, 2001; Throsby, 2001). Based on the discourses of well-known cultural economists, the public goods characteristics and externality of culture generate multiple non-market benefits such as values in terms of prestige, education, selection, existence, bequest and local identity (Baumol and Bowen, 1966; Frey and Pommerehne, 1989; Throsby, 2001).

This study maintains that creative cultural projects are public goods characterized by externality because these projects incorporate cultural concepts. Culture helps people elevate their spirit and cultivates self-awareness following a disaster event (Bardot, 2008; Richards, 2007). Using the experiences gained from the Great Hanshin Earthquake as an example, the role that cultural projects played in the post-quake revitalization effort included creating opportunities for people to resume their daily activities, re-establishing self-identity and local identity, and promoting local solidarity (Agency for Cultural Affairs, 2012). These crucial functions all originate from the various non-market benefits of creative cultural projects.

Regarding past valuation methods for cultural projects, Baumol and Bowen (1966) are the pioneers of empirical research on cultural economics. They have collected objective data to analyse arts and culture, affording a novel direction for cultural evaluation. Throsby (2001) has argued that culture, as the benefit of public goods, can be assessed using the amount that a person is willing to pay for the goods, or by using qualitative methods, such as thick description and content analysis. Regarding the valuation of creative cultural projects in post-quake revitalization, Kobe City employed various evaluation indicators, such as the number of participating artists, the number of projects to which artists have made contributions, the number of nationwide or international events, and the number of users entering the creative facility (Honjo, 2011).

Overall, the aforementioned assertions highlight the importance of quantifiable indicators to arts, culture and creative cultural projects. Although the number of cultural projects can provide meaningful objective statistical results, they cannot reflect the spiritual values of cultural projects. Scholars specializing in cultural studies must carefully consider using these value assessment methods (Tomooka, 2010).

Methods

The CVM

To address the aforementioned concerns, this study argues that a framework for evaluating and quantifying the non-market values of creative cultural projects must first be established. In the field of cultural economics, numerous valuation methods for non-market benefits have been developed to date. Although valuations performed using the TCM are based on the amount that an individual is willing to pay (WTP), this method assesses only the use value. Using the HPM assesses the non-market benefits; however, market information is required. Only the CVM enables use and non-use values to be evaluated simultaneously (Goulder and Kennedy, 1997), without the need for any market information. Thus, it is an ideal method for evaluating cultural projects (Throsby, 2001). A project adopting CVM uses questionnaires to understand the participants’ WTP for the improvement of goods or services, or their willingness to accept compensation for the loss of such goods or services. The data is then used to evaluate the goods or services.

Three types of approaches have been used to evaluate cultural policies, including measuring the spending, production, employment, and increase in tax revenue arising from cultural events; evaluating the effects of WTP on non-market values; and determining the number of times cultural facilities were used (Goto, 2001; Hansen, 1994). Evaluating cultural policies requires careful consideration of the externality of the policy and user attributes (Baumol and Bowen, 1966). Compared with other methods, CVM is most appropriate for evaluating cultural policies because it requires no market data. In the context of public interests, CVM can be considered to be a form of straw poll for improving administrative services or the environment (Kakiuchi, 2005). Furthermore, it is also analogous to a bottom-up project evaluation model. Because there is no market information for creative cultural projects and the non-market benefits of these projects include use and non-use values, this study adopted CVM to propose a process for evaluating and digitizing the non-market benefits of cultural creative projects.

Semi-structured interviews

In addition to using the valuation approach proposed by CVM, we suggest that conducting qualitative interviews will support the valuation results. This study adopted a semi-structured interview and developed an ‘interview guide’. Semi-structured interviews require the following six stages: (a) selecting the type of interview; (b) establishing ethical guidelines, (c) crafting the interview protocol; (d) conducting and recording the interview; (e) analysing and summarizing the interview; and (f) reporting the findings.

This study maintains that using semi-structured interviews can provide evidence supporting the valuation results of a CVM. Although the CVM affords insight into the various non-market benefits of a creative cultural project perceived by residents exhibiting distinct attributes, it must be supplemented with a qualitative interview. The ultimate goal of this research approach was to determine the accuracy of the non-market benefits evaluated using CVM surveys; whether the crucial non-market benefits in a bid function are really valued by local residents; how a cultural project should be implemented to satisfy residents’ needs; and how the benefits of a project and motivation to participate among residents could be maintained. Through a semi-structured interview, residents’ spontaneous responses can be obtained to facilitate interpreting and validating the results of a CVM survey.

The empirical study

Study area

Jiji Township is located in Nantou County in central Taiwan, and has a total area of 49.72 square km and a population of approximately 11,433 people; it is divided into 11 administrative boroughs (Nantou County Government, 2013). Jiji is one of the few railway tourism successes in Taiwan, and is regarded as an important landmark in Taiwan’s railway culture. On the other hand, Jiji is located at the epicentre of the earthquake of 12 September 1999, which was the most deadly earthquake in Taiwan during the last half century. During the process of post-quake revitalization over the past 15 years, Jiji Township, like Japanese cities, attempted to revitalize the area through cultural projects; however, at the time, these efforts mostly focused on public construction and redevelopment. Cultural projects were merely a tool to boost the market economy.

Nevertheless, in July 2010, the Project on the Highlights of Jiji, sponsored by the Ministry of Culture, was initiated in Jiji Township. The project consisted of three phases. During the first phase, the government used the local camphor office (camphor being an important cultural product) as a platform, and invited local elders to recount local history or folk tales; also, old photographs and artifacts were collected in order to continue the local legacy and strengthen local identity.

During the second phase, four local community organizations joined in to promote creative cultural projects, providing new sources of energy for the local area. The projects included: using locally produced wooden materials and incorporating woodcraft into school courses; establishing local workshops to familiarize local residents with woodcraft, and encouraging them to decorate the community and households; welcoming local non-profit organizations and artists to the camphor office to bring in new sources of energy; and establishing community troupes, which consist mostly of local elders or children, thus promoting local culture and achieving social care.

The third phase focused on incorporating the accumulated creative cultural resources from the previous two phases, promoting local culture through the performances of community troupes, and hosting a three-month creative market in the local camphor office, bringing together 20 craft artists and showcasing the results of the projects conducted over the past few years.

The conclusion of the the Project on the Highlights of Jiji in 2012 did not mean the end of Jiji’s creative cultural project and its continual promotion. The government initiated the Local Industry Development Fund at the end of 2012, selecting 20 businesses that were representative of Jiji’s local culture, and designed a series of

creative cultural workshops and courses for these businesses. In addition, every July, the railway cultural festival joins with nearby train stations, and displays a variety of styles of local creativity at different stations, making it a successful example of regenerating local culture, boosting tourism and promoting creative culture that contributes to the economic benefits of Jiji’s tourism.

However, the benefits of projects such as the creative workshop, community drama groups, and the reutilization of historical spaces cannot be measured using only market values. Although a single project may encompass numerous aspects, we still endeavoured to classify the primary characteristics of the creative cultural projects pursued in Jiji Township by using the classification method proposed by Ueno and Suzuki (2013), in addition to referencing past discourses on the non-market benefits of culture. Based on the project contents, we proposed six types of non-market benefits that policy makers are likely to value in a creative cultural project, as shown in Table 1.

Table 1.

Classification of Jiji Township creative cultural projects and their non-market benefits.

	Project content	Potential non-market benefits
a	Factory stores and cultural education courses	Educational and local identity value
	Beautifying community environments using woodworks	Landscape value
	Creative cultural workshops and training courses	Educational value
b	Using the local camphor office	Historic, bequest and landscape value
	Railway cultural festival	Historic and prestige value
	Creative markets	Educational and local identity value
c	Cooperation among universities and expert groups to promote creative projects	Historic and local identity value
	Local community and organization participation	Local identity and educational value
	Community drama groups	Local identity and educational value
	Inviting non-profit organizations and artists to participate	Landscape and educational value
d	Oral history from local elderly people, collection of old photographs, artifacts	Historic, local identity and bequest value

Local identity value enables residents to redefine their identity during post-quake revitalization, interact with others, and establish new community relationships with other local residents; this value is primarily derived from the creative projects that the citizens were involved in or projects in which local culture was utilized. Prestige value results from hosting the railway culture festival as it is nationally famous. Historic value and bequest value are mainly generated from projects involved with using tangible and intangible local cultural assets. However, using this speculative method, we may have neglected other values that might be considered important. In reality, a project could feature numerous non-market benefits. Nonetheless, this is one of the research limitations of this study. The primary objective of this study is not to comprehensively evaluate the non-market values of a project; rather, it is to propose a valuation process that allows policy makers in post-quake regions to select and assess crucial values according to their policy goals.

Questionnaire survey design

This study employed the CVM to evaluate the non-market values of the creative cultural projects implemented in Jiji Township. We conducted a questionnaire survey based on the CVM guidelines established by the National Oceanic and Atmospheric Administration (NOAA) and Ministry of Land, Infrastructure, Transport and Tourism of Japan (MLIT), which comprised five steps. Step 1 involved establishing the survey method. Survey targets and contents were defined according to the classification shown in Table 1, and the scope of the survey and overall benefits were established. We chose four villages (Figure 1) near the Jiji Station as the range for which to calculate the benefits of the projects; these villages were areas where creative cultural projects were promoted. Subsequently, interviewers visited the villages to interview each family household¹.

Figure 1.

Ranges within which the survey (right) was conducted and for which the benefits were calculated (left).

The second step is to devise the questionnaire. This study adopts WTP as the elicitation method, and annual donation is chosen as the payment vehicle, based on the experience of after-earthquake fund-raising in the area. The questionnaire adopts double-bounded dichotomous choice as the elicitation method. The double-bounded dichotomous choice method is conducted by randomly proposing to the interviewee a starting price of T_i, and depending on the answer of yes or no, proposes a higher price of Ti^U or a lower price of T_i^D to the interviewee. The researchers decided on seven starting prices (in NT$) based on test surveys: (Ti, Ti^D, Ti^U) = (100, 50, 200), (200, 150, 400), (300, 150, 600), (500, 250, 750), (600, 300, 800), (800, 400, 1200) and (1000, 500, 1500).

The hypothetical market setting is based on the propositions of Randall (1984), which designate the definition, role, constituents and systemic construction, the extent to which damage could be done, the necessary price to maintain operation and spatial formation, and other aspects of creative cultural projects. At the same time, this study examines the individual characteristics that influence WTP, which is divided into basic individual characteristics and intrinsic individual characteristics.

Step 3 entailed conducting a pre-test to determine the questionnaire response time, comprehensibility, and the appropriateness of the questions and the given monetary amounts. In addition, each question item was further revised to avoid generating possible bias.²

Step 4 involved undertaking the formal survey, during which the appropriate number of samples must be determined because of limited time, funding, and human resources. The NOAA guidelines asserted that a questionnaire survey involving a single-bounded dichotomous choice model with an error of ±3% requires 1000 questionnaire samples. However, using a double-bounded dichotomous choice model to conduct questionnaire surveys enables more precise estimates to be obtained from fewer respondents. Therefore, this study adopted the Japan MLIT’s CVM guidelines to analyse the questionnaire samples. At a 95% confidence interval, with a positive and negative error of 5% (confidence coefficient = 1.96; absolute accuracy = 0.05; P denotes the sample proportion and the approval rate for WTP was set as 0.5), the number of samples required for this study was 351.³ For Step 5, we estimated the utility functions and WTP.

CVM theoretical model and elicitation method

Estimating the offer price function of WTP is helpful in understanding the factors that influence the respondents’ bidding price, and to increase the credibility of the CVM study. According to Hanemann’s (1991) random utility theory, where indirect utility function V = V(j, y, s) + ϵ_j, the probability distribution of the respondent i answering in regard to his/her WTP the bid value of T is only valid when the following is true: the increased utility level after paying T must be higher than, or equal to, the original utility level when choosing not to pay T:

V (1, yT; s) + ϵ_{1} ≧ V (0, y; s) + ϵ_{0}

(1)

j = 1 or 0 denotes that the respondent is ‘willing’ or ‘unwilling’ to pay the bid value of T; y stands for the respondent’s money income; s stands for the respondent’s social and economic characteristics and environmental attitude variable; ϵ_j stands for non-observable stochastic component. Therefore, the probability of respondent Pⁱ’s WTP can be expressed as:

{p^{i}}_{1} = P {V (1, yT; s) + ϵ_{1} ≧ V (0, y; s) + ϵ_{0}}

(2)

With the double-bounded dichotomous choice model, two consecutive questions are presented to the respondent. Therefore, for the answers, there are four possibilities: (Y, Y), (Y, N), (N, Y) and (N, N). The log likelihood function can be expressed as:

\begin{matrix} \ln L = \sum_{i = 0}^{n} {σ^{yy} \ln [1-G ({T_{i}}^{U})] σ^{yn} \ln [G ({T_{i}}^{U}) - \\ G (T_{i})] σ^{ny} \ln [G (T_{i}) -G ({T_{i}}^{D})] σ^{nn} \ln [G ({T_{i}}^{D}) \end{matrix}

(3)

The logit regression model is chosen to analyse the data of double-bounded dichotomy choice, to estimate the WTP and factors, expressed as:

Prob (yes) = \frac{1}{1 + e^{- (α 0 + α 1 X 1 + \dots + α iXi)}}

(4)

l o g \frac{P r o b (y e s)}{1 - Prob (yes)} = α + α_{1} X_{1} + \dots + α iXi

(5)

where X1…Xi is the explanatory variable, α₀…α_i are the parameters to be estimated; e is the base of the natural logarithm; and log is the natural logarithm.

Since this relationship is non-linear in the parameters, a maximum-likelihood estimation procedure is used to estimate the parameters.

Result

The basic individual and intrinsic characteristics of respondents

The CVM questionnaire survey was conducted at the Jiji Station in February 2014 by four researchers, who interviewed households that were the targets of the creative cultural projects. One questionnaire was given to each household. Given limited human resources and funding, we distributed 380 questionnaires and obtained 353 valid samples. In reference to past studies on CVM survey sample size, Japan’s MLIT (2009) believed that estimations made from 300 samples or less are unreliable, whereas Hidano (1999) contended that reliable results can be derived from 300–400 samples. Mitchell and Carson (1989) asserted that a sample size of 200–2500 enables appropriate results to be produced. According to the aforementioned studies, the sample size used in this study should yield results exhibiting an adequate level of reliability.

In terms of the basic individual characteristics of the respondents (Table 2), the number of female respondents was larger than that of male respondents In terms of monthly income, the largest group is ‘under NT$10,000’,⁴ followed by ‘NT$10,001~20,000’, which was considerately lower than the national average.

Table 2.

The characteristics of the respondents.

Basic individual characteristics
Age		Monthly income (NT$)
Under 20	25.78%	Under 10,000	29.46%
21~30	19.55%
31~40	18.41%
41~50	17.56%

		10,001~20,000	28.33%
		20,001~30,000	18.13%
		30,001~40,000	8.50%
51~60	11.61%
		40,001~50,000	2.83%
61 and up	7.08%
		50,001~60,000	3.68%
		60,001~70,000	1.42%
		70,001~80,000	1.41%
		80,001 and up	6.51%
Gender
Male = 1	41.93%
Female = 0	58.07%
Intrinsic individual characteristics
Comprehension		Participation frequency
Understand very well	7.65%	≧3 times	15.86%
Understand well	15.58%	1 to 2 times	33.72%
		Never	50.42%
Understand fairly well	62.32%
I do not understand at all	14.45%

Regarding the intrinsic characteristics (Table 2), most residents had a moderate understanding of the creative cultural projects, but only a few residents had no understanding of them at all. Approximately 50% of the respondents had participated in the projects. This results show that half of the residents had some knowledge of the creative cultural projects, and that the participation rate was high. We infer that this result may be attributed to the public participation and government–citizen cooperation established during the post-quake revitalization. The community activities and rescue efforts held during the revitalization process enabled numerous residents to participate in public affairs, which therefore enhanced their willingness to partake in the creative cultural projects.

The influence factors and WTP value

Before constructing the utility model, a protest bid was deleted from the samples. Protest bids refer to the case where respondents refuse to pay for reasons other than economic considerations. Protest bids happen when the interviewee does not accept the information or the payment method provided in the hypothetical market (Arrow et al., 1993). We obtained 307 samples after removing the results of the protest bid.

To determine what value the creative cultural project would bring to residents living around the post-quake region, we assumed that all the non-market benefits of the projects listed in Table 1 were the reason people were willing to donate, and subsequently interviewed those who were willing to donate. The results indicated that 44.96%, 37.39% and 28.15% of the donors believed the creative cultural projects to exhibit local identity value, historic value, and bequest value, respectively. By contrast, the remaining benefits, landscape, cultural education, and prestige values were recognized by 25.21%, 21.85%, and 17.65% respondents, respectively. Overall, the non-market benefits listed in Table 1 are generated from the creative cultural projects.

To confirm the existence and importance of the non-market benefits to residents, we performed multiple regression analysis on the questionnaire results by using WTP as the dependent variable. The random utility theory proposed by Hanemann (1991) and the logit model were employed to investigate the relationship of individual attributes and reasons for making donations (non-market benefits) with the bid function. According to the final model (Table 3), the results for ‘age’ and ‘participation frequency’ were significant at a confidence interval (CI) of 99%. Moreover, the coefficient was a positive value, indicating that older respondents and those who frequently participated in the projects were more willing to make a donation. We speculate that because older people had more experience in post-quake revitalization activities, they had a higher sense of identification.

Table 3.

The results of the logit model.

Variable	Coefficient	STD	P-value
Constant	7.3245	0.8192	0.000
ln(Bid)	–1.9321	0.1574	0.000
Age	0.3147	0.0851	0.000
Participation	0.8516	0.1912	0.001
Historic value	2.6780	0.3498	0.000
Landscape value	2.0721	0.3668	0.000
Education value	1.8709	0.3837	0.000
Prestige value	1.1503	0.3613	0.002
Bequest value	1.6190	0.33285	0.000
Identity value	2.3530	0.33096	0.000

Log likelihood –307.7443.

Number of observations 307.

Each non-market benefit was significant (CI = 99%) with a positive coefficient, suggesting that non-market benefits facilitated increasing the amount that people are willing to pay. Both the statistical data and multiple regression analysis revealed that the creative cultural projects generated the six non-market values as listed in Table 1, particularly the projects that yielded historic cultural and local identity values, which benefited residents more. These values are also the crucial factor influencing whether residents wish to continue promoting the projects.

Quantifying non-market benefits can yield objective references for future project formulation. As Hanemann(1991) demonstrates, the mean WTP may be determined from the formula:

Mean WTP = \frac{1}{β} In (+ e^{α})

(6)

where β is the absolute value of the coefficient of Bid in the estimated logit equation; and α is the sum of all the other terms in the equation evaluated at the mean values of the explanatory variables.

The calculation of the mean WTP of the double-bounded dichotomous choice model indicates that the mean WTP per person is NT$643. Since mean WTP is more representative of the samples, it is used to calculate the total willingness of the population to pay, which totals NT$3,033,674. To avoid overestimation, the total WTP was adjusted using the return rate of questionnaires, which was NT$2,817,980; sample proportion was also used to adjust total WTP, which was calculated as NT$2,638,386.

To further determine who should be targeted when promoting creative cultural projects, this study assumed that the non-market benefits are the primary factor influencing people’s willingness to make a donation. Subsequently, multiple regression analysis was performed to estimate the mean WTP for distinct attributes and quantify the relationship between non-market benefits and individual attributes. This assumes that WTP constitutes the non-market benefits and conforms to the distributive property of addition. The proportion of each individual attribute to the non-market values selected was used to estimate the constituents of the non-market benefits among the mean WTP of each individual attribute. Figure 2 illustrates the estimation result obtained by analysing the two variables (age and participation frequency) using a double-bound dichotomous model. The result indicated that mean WTP increased with age. People who had participated could obtain more non-market benefits compared with older people.

Figure 2.

The WTP of non-market benefits for each individual characteristic.

Local identity value was valued highly among the respondents compared with other non-market benefits. Specifically, residents who are 30 years or older highly praised this type of value. Historic cultural value and bequest value could roughly contribute a benefit of NT$100 or more to residents possessing various attributes, specifically those 50 years or older rated highly the historic value and designated a WTP amount for bequest value greater than that designated by residents possessing other attributes. Furthermore, residents who had prior participation experience also rated local identity value highly.

The result of semi-structured interviews

This study adopted a semi-structured interview to enhance the credibility of the CVM survey. We asked the interviewees the following questions: (a) How do you feel about the areas surrounding the Jiji Station? (b) Do you think the creative cultural activities and spaces offered in these areas are adequate? (c) If you have participated in a creative cultural project before, what was your motivation to participate? Would you continue to participate in such projects in the future? (d) What type of creative cultural project do you think would be most beneficial to revitalizing the Jiji Station area?

Among the 30 interviewees, 20 had participated in creative cultural projects before. Summarizing interviewees’ perceptions of areas surrounding Jiji Station reveals that most of the interviewees thought the areas featured historic and cultural resource values (n = 19); demonstrated Taiwanese characteristics that are rarely seen in other areas (n = 7); were a part of their everyday life (n = 9); and manifested a distinctive, invigorating streetscape (n = 8); whereas a few had no particular feelings about these areas (n = 8). This result indicates that historic and cultural values are a crucial asset of a region, thus verifying the conclusion drawn from the CVM survey that creative cultural projects are characterized by historic values.

Furthermore, approximately one-third of the interviewees thought that the areas around Jiji Station were a part of their daily life and that they featured a distinctive and invigorating streetscape. This result verified the existence of a local identity value and a landscape value hypothesized in this study, and was also consistent with the results presented in Table 3, which shows that the estimate coefficient of these two values is greater than that of the other variables.

Concerning whether the creative cultural projects and spaces offered were adequate, 14 of the interviewees who had participation experience, and 3 of those who had no participation experience thought the projects and spaces were adequate. We also asked interviewees who thought the projects and spaces were inadequate why they held this view. According to the interviewees, the inadequacy of the spaces was attributed to the disorganization of the projects or activities (n = 3), the chaotic environment surrounding the Jiji Station (n = 7), creative products or activities of the same sort, lacking their own characteristics or being too commercialized (n = 6). These opinions indicate that creative cultural projects, while promoting local revitalization, have also generated new issues.

The motivation to participate of interviewees who had previously participated in creative cultural projects included the following: the sense of mission in participating in local events (n = 4), interaction with residents from other areas (n = 6), meeting new friends (n = 2), promotions by and invitations from local administrative institutions or local organizations (n = 8), alleviating boredom (n = 3). This result shows that residents’ local identity and community neighbourhood relationships are the crucial factors promoting residents’ participation. This phenomenon verifies the existence of local identity value, which, compared with other non-market benefits, is more strongly perceived by interviewees, regardless of the interviewees’ personal attributes (Figure 2).

However, only eight interviewees expressed an intention to continue participating in creative cultural projects in the future. Other interviewees were unwilling to participate again because they had already participated (n = 8) and the content was the same every time the activity was held (n = 5). Thus, to maintain a high level of public participation, local governments must endeavour to make their programmes more attractive to residents if they are to meet their policy goals. For example, the governments could reference the CVM results shown in Figure 2, identify the non-market benefits that various residents deem as important or lacking, and attempt to maintain or improve these benefits.

When asked about what type of creative cultural projects would be conducive to local developments, interviewees who had previously participated proposed projects that can shape a creative streetscape (n = 1), host large-scale creative cultural events or festivals (n = 5), establishing a novel creative arts space (n = 4), support resident-centred creative activities or those that enable resident interaction (n = 8), and invite new artists or creative business people to temporarily stay in the areas around Jiji Station (n = 3). These viewpoints indicate that residents valued resident-centred creative cultural projects the most, but they did not express any opinions regarding historic values, implying that residents were satisfied with the implementation of projects featuring historic and cultural values. However, non-market benefits can be maintained only through support from the public sector, and this should not be overlooked simply because residents are satisfied with the current state of creative cultural projects. These suggestions may serve as a reference for policy makers when promoting creative cultural projects in areas neighbouring the Jiji Station.

Discussion and conclusions

Currently, approximately 1 million tourists visit Jiji Township each year, suggesting that the post-quake revitalization project has successfully generated market economic benefits. However, regions undergoing post-quake revitalization do not require market benefits only. By adopting the CVM, this study successfully verified that creative cultural projects can generate multiple non-market benefits. Examining the utility function reveals that the six types of benefits positively influenced the local residents. In addition, the double-bound dichotomous model verified that people who are older and who often participated in these projects can benefit more from them. The model facilitated quantifying the non-market benefits that all residents and residents with distinct attributes can gain. This type of approach can be used in line with policy goals and, through quantification, identifies the projects that would bring greater benefits to residents of different social standing. Consequently, methods for enhancing and maintaining project benefits can be determined.

Depending on future policy goals, the results of this study could be interpreted differently. For example, in this study we assumed that the prestige value originated from hosting multiple cultural festivals, such as the Nantou County Train Festival. If the authorities in Jiji Township seek to enhance the prestige value of the region in the future, they should determine why they failed to provide the prestige value to some residents through cultural festivals. Alternatively, because people who frequently participated in the projects and older people could gain greater benefit, government officials must consider how to increase the participation of people in the younger age group or propose projects that target elderly people, and can maintain or improve existing values.

In addition to CVM, semi-structured interviews were adopted in this study, providing researchers with an in-depth understanding of interviewees’ feelings. For example, through these interviews, the study verified the presence of non-market benefits evaluated using the CVM, and offered suggestions for maintaining the benefits of creative cultural projects and sustaining people’s motivation to participate. Through the use of qualitative interviews, the reliability of research results can be increased. Thus, focusing on policy goals, future policy makers could adopt the valuation framework proposed in this study and supplement it with qualitative interviews, to obtain definitive valuation results for policy amendments.

Based on the research objectives of this study, the following conclusions and contributions were reached:

(a) We adopted the concepts of cultural economics, urban regeneration, creative city, and changes in Japan’s approach to creative revitalization as the basis for this research project, analysing the importance and value of creative cultural projects in post-quake revitalization. We determined the deficiencies in extant valuation methods, in that they cannot assess the changes in the demand for cultural benefits in post-quake revitalization regions.

(b) Visiting the research site for verification, and proposing a process for evaluating the non-market benefits of creative cultural projects for post-quake revitalization regions, are conducive to exploring the projects suitable for post-quake revitalization regions and targets of such projects. This study verified that creative cultural projects definitely generated non-market benefits for residents of post-quake regions. The CVM can be employed as an effective approach that facilitates the evaluation of non-market benefits of cultural creative projects. No studies on the valuation of non-market benefits of creative cultural projects of creative revitalization have been conducted thus far. This study provides a basis for establishing a novel perspective on the use of culture in post-quake revitalization.

(c) Regarding suggestions for future creative cultural projects, each region features distinct characteristics; thus not all regions can emulate the way Jiji Township has promoted creative cultural projects. Previous evaluations and decision-making processes for creative cultural projects have all involved a top-down approach that is governed by governmental agencies, investors, or experts (Throsby, 2001). This method poses risks to regions undergoing post-quake revitalization. The CVM can be deemed a straw poll of residents in post-quake revitalization regions, enabling local communities to define their value concepts, which should facilitate the establishment of a bottom-up method for cultural project promotion.

To propose a valuation process, this study classified the creative cultural projects implemented in Jiji Township and assumed that the projects possessed six types of non-market benefits. However, this does not mean that creative cultural projects only have these benefits. This study primarily aimed at enabling decision makers in post-quake revitalization regions to evaluate the non-market benefits emphasized in policy goals, rather than to individually assess each non-market benefit, which is ineffective for policy modification or selection. It is recommended that researchers first clarify the policy goals before analysing creative cultural projects according to the approach proposed in our study. Subsequently, the types of non-market benefits in a project and individual attributes used in the CVM should be determined.

Footnotes

Declaration of Conflicting Interests

The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Funding

The author(s) received no financial support for the research, authorship, and/or publication of this article.

Notes

Author biographies

Hsien-Hsin Cheng is a Professor in the Department of Urban Planning, National Cheng Kung University, Taiwan. Her research focus is on urban generation and cultural heritage preservation. She has written many papers and books, including A Study on the Spatial Configuration and Transformation in Wan-Li Settlement (2012).

Chung-Yao Liao is a PhD student in the Department of Urban Planning, National Cheng Kung University, Taiwan. His research focus is on urban generation.

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