Economic Factors

Abstract

Throughout the world, policy decisions are based on the economic projections or demonstrated impacts of a market-driven economy. As important as social and environmental considerations may be, the predominant question usually is how well a project pays back in economic terms. Under the current framework that defines success using strictly economic metrics, the philosophy of extraction and depletion and the ongoing demand to produce things quickly and cheaply will prevail. The ideals of social equity and environmental stewardship have held a lesser role in developing new opportunities for growth. In the pervasive economics-based decision system, potential projects must demonstrate an economic return to their investors or a reduced cost to accomplish economic goals. This chapter explores tax credits, grants, and other programs that are available in the United States for preservation and adaptive use projects. The chapter then demonstrates the broader economic implications of success in preserving and reusing buildings using common economic metrics (e.g., property values, job growth and increased tax revenues, increased income, jobs created per $1 million spent, and the cost of each job created). Although many advocates and consumers of cultural heritage do not specifically think in terms of economic benefit, the economic indicators regarding preservation and reuse definitively show significantly better outcomes than other economic incentives and activities.