1. Economic instruments for conservation
03/12/2018
Economic instruments for conservation
Christian Hjorth-Andersen
Professor em.
Department of economics.

2. Outline: 1. Some numbers on the Danish conservation effort
03/12/2018
Outline: 1. Some numbers on the Danish conservation effort
2. Some remarks on the economic instruments
3. Some remarks on the Danish conservation policy

3. Public expenditure on culture. Million DKK
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Public expenditure on culture. Million DKK
2012
2013
2014
2015
Cultural heritage
1.897
1.933
1.952
2.039
media, libraries and literature
8.916
9.158
9.129
9.131
Scene and music
2.978
3.003
3.051
3.060
Visual art and design
520
519
565
575
Other cultural activities
3.518
3.943
3.949
4.119
Total
17.829
18.556
18.646
18.924
Source : Statistics Denmark

4. Cultural heritage by category. Million DKK 2012 2013 2014 2015
Archives
215
218
224
221
Protected buildings
206
179
172
Protected relics 15 14
Landscape
Museums
1.419
1.480
1.499
1.582
Language 4 5
Total
1.897
1.933
1.952
2.039
Source : Statistics Denmark

5. Total expenditure, The Danish national church, mill. 2014 DKK
03/12/2018
Total expenditure, The Danish national church, mill DKK
2005
2006 ….
2013
2014
Salaries
3.971
4.049
4.224
4.251
Expenses
1.887
1.850
2.031
2.012
Expenses churchyard
  386
   390
   459
   482
Fixed assets
  716
   789
   790
   901
Asset churchyard
  134
   138
   111
   125
Total expenses
7.169
7.288
7.725
7.885
Source: Ministry of the Church,

6. 4 different means of conservation
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4 different means of conservation
State ownership
Change of property rights
Uses of the price mechanism
Regulations

7. State ownership of the most important buildings
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State ownership of the most important buildings
Quite common as a result of revolution, e.g. France, Russia, China
Very little academic literature on the topic of state versus private ownership.
Would state ownership be a possible solution for conservation of the Danish churches?

8. Change of property rights
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Change of property rights
Very restrictive
Very lenient
Any change requires a permission from the government
A building cannot be protected without the consent of the owner

9. Uses of the price mechanism
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Uses of the price mechanism
Very broad spectrum of possible approaches:
Direct subsidy to conservation measures.
Especially suited for a great number of possible conservation items.
3 different categories:
For some owners the subsidy will be a pure benefit. They would have conserved their house anyway so the subsidy has no effect.
For some owners the subsidy will mean that the house will be conserved while the house would not have been conserved without the subsidy.
For some owners the subsidy will have no effect as it is not sufficient to motivate to conservation

10. 2. Special loan arrangement for loans
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2. Special loan arrangement for loans
3. Special tax arrangement
4. Special inheritance arrangements

11. A special use of the price mechanism: Entrance fees.
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A special use of the price mechanism: Entrance fees.
Sometimes used in churches in Europe and elsewhere.
In Denmark, the Roskilde Cathedral charges:
Adults DKK kr. 60 Young 0-17 years: Free
Retired and students: Dkk 40
Would further use of entrance fees be useful for conservation?

12. The Danish conservation policy.
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The Danish conservation policy.
All buildings before the Reformation in 1536 are protected.
A building may come into the category Protected at the suggestion of a special committee, Statens Bygningssyn, and with the consent of the minister.
A protected building enjoys a number of advantages with respect to tax and loan arrangements.

13. 6. There are about 2.500 churches in Denmark
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4. There are about protected buildings in Denmark.
5. Churches are not automatically protected but if they cease to be used as churches most of them will be protected as they are built before 1536.
6. If a church is protected the protection may include not only the the building in a narrow sense but also part of the interior and even the churchyard. This may severely limit the alternative value of the church.
6. There are about churches in Denmark

14. *0.43 per cent of taxable income in Gentofte municipality
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7. Churches in Denmark are mainly locally funded and so the voluntary church tax varies
*0.43 per cent of taxable income in Gentofte municipality
* on Samsø and Læsø islands
8. The decentralized structure of the Danish church implies – at least in theory – that some parishes may have difficulty maintaining their church