Institutional Foundations of Heritage Railways: The High Cost of Low Trust in the Preservation of Merit Goods

Abstract

:This article is an empirical inquiry into the nature and causes of the preservation and reuse of railway heritage from a comparative point of view. It addresses the question of why this heritage is not preserved in Andalusia (Spain). Railway heritage is a mixed good, as a public good requires either the public or the not-for-profit sector to intervene to ensure its preservation. In the case of a merit good, it is legitimate for the government to interfere with consumer preferences. The results suggest that three factors directly impact the preservation of railway heritage: (i) the quality of government, (ii) volunteering, and (iii) collective preferences. The first two factors depend on social capital as measured by generalized trust, while the third one is idiosyncratic.