1. Economic Evaluation of the New Museum of Image and Sound (MIS) Rio de Janeiro Evaluation in Complex Ecologies: Relationships, Responsibilities, Relevance 26th Annual Conference of the American Evaluation Association Minneapolis, October 24-27, 2012

2. Roberto Marinho Foundation Non-governmental organization founded in 1977 A partnership-based organization: governments, NGOs and private companies Focus on education using communication technologies Target: youth and adults Areas: education, heritage, environment and communication

3. Our Mission To mobilize people and communities using the media, social groups and partnerships to develop educational initiatives that enhance the quality of life of the Brazilians

4. The Museum of Imagem and Sound Rio de Janeiro has always been a hub of Brazilian cultural production The MIS is currently located in the center of the city and maintains records of great personalities of the Brazilian’s culture since 1965. However, it is only visited by researchers and none of its archives are available to the public The new MIS will be the first museum dedicated to Rio’s identity, which is mainly marked by artistic creation

5. The New Museum of Image and Sound (MIS) is an initiative of the Government of Rio de Janeiro and the Roberto Marinho Foundation The new MIS maintains the original spirit of the Museum but with a modern, hi-tech and multimedia look It will preserve and disseminate Rio de Janeiro´s cultural production through audio and video techniques Researchers, students, residents and tourists will be introduced to the history and production of the music (Samba and Bossa Nova), parties (such as Carnival), TV and radio production, among other cultural issues The New Museum of Imagem and Sound

6. SAMBA – CHORO / NATIONAL RADIO PHOTOGRAPHY MUSIC CARMEN MIRANDA AND TELEVISION HUMOR / REBELLION / CARNIVAL BLACK MUSIC & BOSSA NOVA The New Museum

7. PANORAMIC RESTAURANT ENTRANCE NIGHT CLUB KIOSKS ON THE BEACH MOVIE THEATRE COFFE AND GIFT SHOP TEMPORARY EXHIBITION EDUCATIONAL SPACE RESEARCH CENTER CINEMA AND PANORAMIC TERRACE The Museum

8. PATRONS: SPONSORS: SUPPORT: PROJECT FUNDED BY:

9. Economic Evaluation of the new Audio and Visual Museum (MIS) Rio de Janeiro The study: Sample 500 Rio de Janeiro´s residents 500Turists (foreigners and Brazilians) Period 3 to 25 november/2011

10. Goals To undertake a cost-benefit analysis of the new museum project comparing cultural and tourism values with the project costs Cultural value = non-use value Tourism value = recreation use value Project costs = capital and operation costs

11. Benefit Estimates Benefit = consumer suplus = people´s value minus price paid Contingent valuation method: Stated preference method that captures, through survey, people´s willingness to pay (WTP) for goods and services U(Y, no MIS) = U(Y - WTP, MIS) Estimated Benefits

12. Contingent Valuation Method (CVM) Methodology largely applied in environmental economics to evaluate environmental goods and services – EGS (see, for example, Freeman, 1979; Pearce e Turner, 1990; Hanley et. al., 1997, Perman, 2003 e Seroa da Motta, 2006) Recently also applied for cultural goods - CGS (Navrud e Ready, 2001 and Nooman,2003) For museums: see Bedate et. al. (2009) e Sanz et al. (2003) in Spain; Bravi et. (2002) e Santagata e Signorello (2000) for Italy and Martin (1994) for Canada. Contingent Evaluation Method (CVM)

13. CVM Critique Non-economists: Cutural values are beyond individual values and cannot be traded against other consumption items (Klamer, 2003) Economists: People do not have altruist approach to culture so one cannot capture people´s preference on cultural values (Brooks, 2004) CVM Critique

14. The Applied CVM v (1, y – BID; s) + ε 1 > v (0, y, s) + ε 0 or v (1, y – BID; s) – v (0, y, s) > ε 0 – ε 1 BID = WTP when ∆v = 0 ε 0 - ε 1 logit or probit distribution (Hanemann, 1984 e Maddala, 1983) Procedures: ◦ Visual aids to avoid scope bias ◦ Close-ended/ dichotomic elicitation format to avoid strategic bias ◦ Pay instrument : Cultural - donation to a fund managed by NGOs and artists to reduce protest and Tourism - entrance fees

15. Cultural Value Results 70.5% of interviewees said they are interested in cultural issues 72.4% consider important the new museum 84.6% believe that is important to preserve the Brazilian culture But 33% do not accept to pay for preservation (85% because they see this as a governmental obligation to be done with current budget and 15% do not believe in governmental management – protest rate according to the literature)

16. Explaining Cultural Value (2)

17. Estimated Cultural Values

18. Tourism Value Results 22% of the responders state that would stay another day in the city to visit the Museum 79.2% was not aware of the Museum 95.3% would be willing to pay to visit it So no protest to pay for a visit

19. Explaining Tourism Value - Brazilians

20. Explaining Tourism Value - Foreigners

21. Estimated Tourism Value

23. Thanks! seroadamotta.ronaldo@gmail.com monicap@frm.org.br