Nonmarket Valuation of Cultural and Environmental Impacts of Sustainable City Tourism in Vienna, Austria

Abstract

The main purpose of this paper is to monetarily assess the effect of cultural and natural goods and services on tourism in Vienna, Austria. By means of hedonic modelling, we investigate how the value of tourist places, cultural and natural monuments is capitalized in commercial housing prices. First, in the context of variable selection, main tourist attractions are identified. In the second section, by controlling for accessibility effects of transportation, the investigation area is defined. Using hedonic regression analyses, the tourists' willingness to pay for the adjacency to monuments is quantified. Finally, results obtained are used to illustrate the influence of sustainable city tourism on the preservation of cultural and natural monuments. There are particular important trade-offs between preservation and new construction. Keywords: hedonic model, nonmarket valuation of cultural goods and services, accessibility to monuments in sustainable tourism.