The chapter focuses on the economic impact of public subsidies for urban heritage conservation. It explores the role of modern nation-states in shaping our understanding of heritage and its preservation, emphasizing the complex reasons behind governmental expenditures in this field, including tourism income, local branding, and job creation. The chapter analyzes two types of interventions - supply and demand - in financing heritage conservation, highlighting that supply interventions are often driven by identity politics and are less effective in creating real economic impacts for long-term conservation. In contrast, demand interventions are more efficient in extending the economic impact of public subsidies.

The text delves into the historical and contemporary challenges of heritage conservation, discussing how local communities often engage in heritage preservation in response to national efforts to impose cultural identity symbols. The chapter critiques the dominant approaches to heritage conservation, which prioritize physical preservation over understanding the economic framework producing heritage. It argues for a more economically sustainable approach to heritage conservation, considering the dual value of heritage properties as both real estate and cultural assets.

The chapter concludes by suggesting principles for effective heritage conservation, emphasizing the need for a balance between use and long-term availability, compatibility between state policies and local interests, local investment in heritage sites, and innovative uses that do not overconsume heritage locations. It advocates for public debate on the role of heritage conservation beyond its cultural and national symbolism, urging a balanced mix of supply and demand interventions for more sustainable outcomes.