Externalities and willingness to pay for the International Festival of Living Arts Loja FIAVL as indicators of appropriation of urban public spaces

Abstract

Cultural festivals are a powerful instrument to promote culture, art, employment, the reconfiguration of productive activities and local development. The objective of the document is to analyze the externalities and the determinants of the Willingness to Pay (DAP) by the International Festival of Arts Vivas Loja (FIAVL), for the activation and appropriation of urban public spaces. From surveys, the externalities of this cultural event identified as a public good are identified, the willingness to pay was calculated through the contingent valuation method, and the determinants of its demand are identified through a probabilistic model. As a result, the WTP is 55%, its determinants are: the degree of perceived well-being, higher education level or more, attending the event and living in the center of the city. These results show the need to strengthen the use and appropriation of public spaces that promote the action of social capital under cultural and creative initiatives.