A Life Cycle and Economic Assessment of the Peggy Guggenheim Collection in Venice for Environmental and Economic Sustainability

Abstract

This paper applies selected methodologies for the measurement of the environmental and economic sustainability of the Peggy Guggenheim Collection (PGC) in Venice with a view to assessing the PGC’s sustainability and commitment to implementing selected SDGs. To assess environmental sustainability, a life cycle assessment (LCA) has been carried out. The museum is conceptualized as a “firm” that produces several outputs and needs several inputs. The results provide the number of annual CO₂e (and other pollutants) emissions linked to the regular activity of the museum. The environmental cost (in EUR), linked to the impacts obtained from LCA, has been calculated. To assess economic sustainability, a survey and econometric methods were used to value services directly generated by the museum, and input/output methods were used to compute the direct and indirect impacts on the local economy. Nonetheless, PGC visitors (those who travel to Venice with the main objective of visiting the PGC) contribute to around 1.2%/1.4% of Venice’s GDP. The results from input–output tables show that, although the final demand generated by the PGC’s own activities amounted to about EUR 620 million in 2022, the economic benefits of the PGC beyond this final demand are significant and very positive due to carry-over effects. Specifically, the PGC leads to an increase in GDP of around EUR 1.200 million, with a multiplier of 1.9. In terms of employment, around 8200 jobs are associated with the presence of the PGC. The net public finance revenue also clearly benefits, with a net income of around EUR 150 million in 2022. Comparing both the environmental and economic impacts of the PGC, one can conclude that the annual activities performed by the museum are highly sustainable, with the economic pillar strongly offsetting the costs generated using natural resources. The creation of economic value, therefore, is generated in respect of environmental boundaries, even if some minor flaws can be highlighted. The connection between museums and sustainable development goals is highly recognized. The findings show the PGC’s commitment to achieving and implementing selected SDGs, including SDG 4, SDG 11, and SDG 16, by implementing actions and strategies that are aligned with these goals.

1. Introduction

The concept of sustainability is increasingly applied to all types of institutions and organizations, including museums. Museums can be engines of economic development (through cultural industries, cultural tourism, and traditional livelihoods), as well as contributors to social cohesion, natural environment sustainability, and resilient communities. From this perspective, major museums are implementing sustainable measures, mostly based on environmental sustainability.

When the Brundtland report was drawn up in 1987, culture was not mentioned as one of the basic pillars of sustainable development. However, at present, more and more studies emphasize the key role of cultural organizations in the process of sustainable development of a region. These organizations can be engines of economic development (through cultural industries, cultural tourism, and traditional livelihoods), as well as contributors to social cohesion, natural environment sustainability, and resilient communities ([1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16] for selected contributions). Despite the large body of literature on the link between sustainability pillars and SDGs (see [17,18,19] for a thorough literature review), little attention has been allocated by scholars to the case of museums. Many resources, in fact, are not traditional scientific papers, but are based on the principles of the SDGs and offer valuable insights or case studies from respected organizations in the museum field [20,21,22,23,24]. To be able to measure the contribution of cultural organizations to the sustainable development of a region, it is necessary to assess these organizations regarding their own sustainability attributes and capacity to influence or mold sustainable behaviors [25,26,27].

This paper is the first attempt, to our knowledge, to quantitatively assess, using scientific methodologies, the sustainability of a particular museum—i.e., the Peggy Guggenheim Collection in Venice (PGC), which is located on Venice’s Grand Canal between Santa Maria della Salute and the Gallerie dell’Accademia, in a palace that used to be the Peggy Guggenheim residence in Venice and now hosts the Collection. The PGC is one of Europe’s premier museums devoted to modern art. At the core of the museum’s holdings is Peggy Guggenheim’s personal collection of 20th-century art comprising masterpieces ranging in style from Cubism and Surrealism to Abstract Expressionism. The museum is in the heart of Venice, one of the most visited cities in the world but currently suffering several negative impacts, generated by over-tourism and climate change. The museum is visited by 390,000 visitors per year on average, spanning from 427,000 in 2017 to 350,000 in 2022 (excluding the years of the COVID-19 pandemic). For the sake of comparison, in 2022, the Palazzo Ducale, the most visited cultural site in Venice, was visited by 1.2 million tourists. The nearby Museo Correr, one the most important Museums in Venice, which contains a very prestigious collection of Old Masters and contemporary works, was visited by 400,000 persons in 2022.

The main questions addressed in this paper are the following: Is the PGC sustainable? If so, to what extent and from what perspectives and dimensions is it sustainable? How can one assess and measure those sustainability dimensions? A general answer to the first question implies that the PGC is sustainable if the objectives, actions, tasks, and projects of the museum align with the definition at stake. In synthesis, a sustainable PGC should preserve and enhance the present and future economic, environmental, and social resources used by the museum, taking account of their impacts locally and globally. The second question, however, presents complex challenges since it requires a choice of assessment methodologies and evaluation of cultural institutions.

The two questions are addressed as follows: Section 2 explains the basis of the methods used. Section 3 reports the applications and results of applying the methods. Section 4 concludes this paper and highlights selected recommendations.

2. Methodological Framework: Environmental and Economic Sustainability

The environmental issues covered depend on and are established by the nature of the input, output, product, and economic activities performed by the museum and related economic activities. In this perspective, the environmental sustainability of the cultural institution is defined and assessed within the framework of resources used for conducting the institutional activities and from the wastes generated. A key environmental indicator of sustainability is the measurement of the environmental footprint.

To evaluate the economic sustainability of a museum, the costs and benefits of its activity must be considered. The main economic indicators considered for measuring the cost side are capital costs and operating costs. Capital costs represent expenses incurred when setting up the process. These costs usually include costs such as planning, site, buildings, machines and equipment, electrification, automation, training, start-up, spare parts, and reserve costs. Operating costs give information about daily/monthly/yearly costs incurred in the development of the main activity of the museum [21]. On the benefit side, along with public economic support, there are different ways to generate revenue: from tickets and subscriptions to voluntary contributions (donations and associative forms), from facility management projects (cafeteria, restaurant, bookshop, and gift shop) to paid collateral and parallel events (guided tours with theatrical performances, dinners, themed workshops and laboratories, interdisciplinary performances, etc.), from the loan of works to ordinary and technical sponsorships, from the opportunities offered by dedicated public calls (European and national) and Art Bonus to corporate fundraising (Many museums are now overstretched and financially weak and therefore vulnerable to decline. Because museums have to work within the resources available to them, many are diversifying their sources of income to avoid over-reliance on a single source of public funding. There is growing belief in the potential of private philanthropy to support cultural organizations, complementing public and charitable funding, sponsorship, and earned income. Some national museums attract around half of their funding from non-government sources; some independent museums aim to operate as social enterprises, and some local-authority museums are administered by charitable trusts that find it easier to diversify their income and can agree funding from their parent local authority several years in advance. Uncertainty about funding can lead museums to think short-term, whereas sustainability requires a long-term approach. Museums need to be clear about their purpose and ensure that their most important activities are sustained). By comparing both cost and benefit inputs, it is possible to measure the economic sustainability of a museum. Without economic sustainability, it becomes impossible to safeguard cultural heritage and human, social, and environmental capital [28].

In addition, museums and cultural heritage are powerful assets for local development. Measuring the value that a museum brings to the city in which it is located can be challenging, given all that the concept of ‘value’ encompasses. Therefore, the positive impact of the PGC on Venice will include its ability to attract tourists, bring revenue, regenerate local economies, promote inclusion, boost cultural diversity, and reinvent territorial identity. Figure 1 lists all the ways in which museums can generate value for a city.

Given the above, the key questions then become the following:

(1)

What is the impact on the environment and the use of natural resources generated by the PGC in the performance of institutional goals?

(2)

Beyond the value directly generated, i.e., revenues, what are the impacts of the PGC on the local and national economy of the PGC in the performance of institutional goals?

(3)

More widely, what are the social costs and benefits (in environmental and economic terms) generated by the PGC in the performance of its institutional goals?

For the environmental assessment, we have selected life cycle analysis (LCA). For this purpose, the PGC is conceptualized as a “firm” that produces several outputs, namely permanent and temporary exhibitions. In the production process, several inputs (water, energy, skilled labor, works of art, as examples) are needed to produce the final output(s). The use of the inputs for production generates several impacts: the creation of cultural products, social cohesion, revenues and profits, and environmental impacts, among others. The application of LCA to the PGC output production allows us to quantify and measure the environmental impacts, to tackle “what input affects what” and “how much”. This is fundamental for designing proper environmental practices, since “we cannot manage, what we cannot measure”. Such an assessment is crucial for quantitatively assessing the impact of the “pillar environment” on the sustainability strategy of the PGC.

To quantify the economic sustainability of the museum, we have selected two methods. A combination of survey and econometric methods is used for measuring the value directly generated by the museum, while input–output analysis is used for computing the direct, indirect, and induced impacts on the local economy. Input–output methods can also be used to track the effects of visits to the museum on other sectors of the economy. There are several methodologies that can be used to quantify the relevance of a museum to its environment. For our analysis, we use econometrics to measure the value directly generated by the museum and input/output analysis for computing the direct and indirect impacts on the local economy. The selection of those methods relies on two criteria. First, input–output analysis and econometric modeling are scientific, well-recognized, research-based evaluation tools. This allows a certain degree of robustness and credibility in the results because the methodologies are scientifically sound. Second, input–output analysis conceptually represents a kind of economic counterpart of environmental life cycle analysis. This allows for coherence in the use of the assessment tools and comparability of environmental and economic sustainability results.

3. Applications of Environmental and Economic Sustainability Analysis to the PGC (SimaPro Version 9.5)

The section reports the methodological applications and results for the assessment of the environmental and economic sustainability of the PGC.

3.1. Environmental Sustainability Analysis and Life Cycle Assessment in Theory

Life cycle assessment (LCA) is a tool for quantifying the environmental performance of a product considering the complete life cycle. Figure 2 presents a graphical scheme that explains the cradle-to-grave concept of the life cycle thinking approach used in a life cycle assessment.

There are four main stages of a life cycle assessment study, as defined in ISO 14040 [30]. They are as follows:

• Goal and scope definition;
• Inventory analysis;
• Impact assessment;
• Interpretation of result [29].

In general, the goal and scope definition step ensures that LCA is performed consistently (An LCA models a product, service, or system life cycle. A model is a simplification of a complex reality. This implies that the observed reality may be distorted in some way. The challenge for the LCA analyst is to minimize as much as possible the impacts of the simplification and distortions on the results. The best way to do this is to carefully define the goal and scope of the LCA study). In the inventory analysis step, all the environmental inputs and outputs associated with a product or service are scrutinized (An example of an environmental input—something taken out of the environment to put into the product’s life cycle—is the use of raw materials and energy. Environmental outputs—which a product’s life cycle puts out into the environment—include the emission of pollutants and waste streams for example). The life cycle impact (LCI) is all about collecting relevant data and modeling these data via inputs and outputs. The life cycle impact assessment (LCIA) step allows conclusions to be drawn for improved business decisions. The environmental impacts of all processes collected and modeled in the LCI are classified and translated into environmental themes, such as climate change or human health. Finally, the interpretation step verifies that the results and conclusions are well substantiated. The ISO 14044 standard [31] describes several checks performed to test whether the data and the procedures support the conclusions. This makes results robust and reliable.

The role of LCA in making an assessment is shaped by its iterative methodology, where the analysis is refined as it goes along. For instance, the first round of analysis may highlight the need for more or different data. The results of the assessment or the interpretation of the results may lead to the revision of the research goal and scope. In this perspective, every LCA not only provides key information and valuable advice for making changes or adjustments in the economic activity under scrutiny but also signals how to best plan and design the next LCA to elicit further insights [32]

In this perspective, the application of LCA to the Peggy Guggenheim Collection (PGC) is mostly motivated by the requirement to assess the environmental impact (or environmental externality (An externality is a positive or negative outcome generated by a given economic activity that affects an external element (like the environment) that is not directly related to that economic activity.)) of the activities, performed by and within the PGC, in the most scientific and precise manner. For this reason, the PGC is conceptualized as a “firm” that produces several outputs, namely permanent and temporary exhibitions. In the production process, several inputs (water, energy, skilled labor, works of art, as examples) are needed to produce the final output(s). The use of the inputs for production generates several impacts: the creation of cultural products, social cohesion, revenues and profits, and environmental impacts, among others. The application of LCA to the PGC output production allows us to quantify and measure the environmental impacts, to tackle “what input affects what” and “how much”. This is fundamental for designing proper environmental practices, since “we cannot manage, what we cannot measure”. Such an assessment is crucial for quantitatively assessing the impact of the “pillar environment” on the sustainability strategy of the PGC.

3.2. Environmental Sustainability Analysis and Life Cycle Assessment in Practice: The PGC

The first step, and one of the most important steps, is to define and limit the system. This implies describing the physical, spatial, and temporal boundaries of the study. For the Peggy Guggenheim case, these aspects are presented in

Table 1. Goal and scope definition of PGC life cycle analysis.

Object of the study	Life cycle assessment (LCA) of the regular activities of the Peggy Guggenheim Collection.
System boundaries	The analysis considers the direct and indirect impacts resulting from the museum’s regular activities, including those arising from organizing exhibitions within the premises. The processes considered in this LCA are raw materials and product acquisition and the use/consumption stage. Extraordinary building maintenance activities and impacts from the construction and demolition of buildings are excluded. The treatment of waste arising from materials is also excluded from the estimation given that both waste transportation and waste management are outsourced by the museum. Information about the distances covered and waste treatment is not available.
Definition of the system	The physical perimeter of the Peggy Guggenheim Collection in Venice.
Functional unit	One year of regular museum activities [January 1st–December 31st].
Identification of data	The impact category analyzed is CO2e emissions (a carbon dioxide equivalent or CO2 equivalent, abbreviated as CO2e, is a metric measure used to compare the emissions from various greenhouse gases on the basis of their global-warming potential (GWP), by converting amounts of other gases to the equivalent amount of carbon dioxide with the same global warming potential. Carbon dioxide equivalents are commonly expressed as million metric tonnes of carbon dioxide equivalents, abbreviated as MMTCDE. The carbon dioxide equivalent for a gas is derived by multiplying the tonnes of the gas by the associated GWP: MMTCDE = (million metric tonnes of a gas) × (GWP of the gas). For example, the GWP for methane is 25, and for nitrous oxide, 298. This means that emissions of 1 million metric tonnes of methane and nitrous oxide is equivalent to emissions of 25 and 298 million metric tonnes of carbon dioxide, respectively.).

Source: own elaboration.

.

Therefore, only after a scrutiny of the PGC activities and the gathering of the data were the environmental issues synthesized in

Table 2. PGC life cycle analysis categories and environmental issues covered.

Category	Environmental Issue Covered
Average natural gas consumption	Energy Efficiency, Climate Change
Average electricity consumption	Energy Efficiency, Climate Change
Average water consumption	Water Management
Septic sludge waste production	Waste Management
Internships (travel)
- Plane	Climate Change, Air Pollution
- Train	Climate Change
Artwork transport
- Truck	Climate Change, Air Pollution
- Plane	Climate Change, Air Pollution
Material consumption
- Varnish	Air Pollution, Climate Change
- Wood packaging	Climate Change
- Neoprene	Climate Change
- Wood MDF	Climate Change
- Plexiglass	Climate Change

Source: own elaboration.

selected.

The most important environmental issue is climate change, which is induced and exacerbated by CO₂ and other pollutant emissions. Most anthropogenic activities emit CO₂ that generates changes in the climatic pattern. Other issues (marginally) covered refer to air pollution, energy efficiency, and water management, all issues that refer to proper modern management of resource scarcity for the sake of conservation for future generations.

In phase 2, an inventory is elaborated, including all key processes and materials in the annual operation of the museum. Each one of these elements will be expressed in the corresponding units. The inventory used to calculate the LCA of the Peggy Guggenheim Collection includes the aspects gathered in

Table 3. PGC life cycle analysis categories and unit of measure.

Category	Unit	Value
Average natural gas consumption	Sm3 (Sm3/h (standard cubic meters per hour) is a measure of the gas flow rate at standard temperature and pressure conditions, but with the gas corrected to a standard composition)/year	36,221
Average electricity consumption	kWh/year	557,033.9
Average water consumption	m3/year	7185.7
Septic sludge waste production	m3/year	46.8
Internships (travels)
- Plane	Km	953,217
- Train	Km	9476
Artwork transport
- Truck	Km	3340
- Plane	Km	48,026
Material consumption
- Varnish	l/year	111.1
- Wood packaging	Kg/year	41,731.2
- Neoprene	Kg/year	115.2
- Wood MDF	Kg/year	756
- Plexiglass	Kg/year	113.3

Source: based on internal data provided by PGC.

.

In stage 3, the impact on the environment linked to each of the categories included in the inventory elaborated in the previous stage is assessed (

Table 4. Environmental annual impact of PGC—CO₂e emissions.

Category	Description	Data Base	Factor Emission	Annual kgCO2e Emissions
Gas consumption	It considers the impacts linked to the distribution of district heat and steam and to gas consumption at the museum’s facilities	[33,34]	0.009 kgCO2e/kWh (distribution) 0.182 kgCO2e/kWh (consumption)	83,075.4
Electricity consumption	It considers the impacts linked to the transmission and distribution of electricity and to its consumption at the museum’s facilities	[33,34]	0.018 kgCO2e/kWh (distribution) 0.389 kgCO2e/kWh (consumption)	226,668.2
Water consumption	It considers the impact linked to water supply (water delivered through the mains supply network) and water treatment (water returned into the sewage system through mains drains)	[33]	0.177 KgCO2e/m3 (supply) 0.201 kgCO2e/m3 (treatment)	2716.2
Septic sludge waste production	It considers the impacts linked to the treatment processes which generally take place at the production site (the museum). The activity starts with the inputs from the treatment processes and ends with the provision of treatment.	SimaPro	7.59 kgCO2e/m3	355.5
Internships				169,766.5
- Plane	It considers the impacts linked to the use of fuel per passenger on aircraft used for transport from their origin city to Venice. A distinction is made between domestic, short-haul (Europe), and international or long-haul flights. Both the number of internships coming from each destination and the total number of km traveled are taken into account.	[33]	0.273 kgCO2e/passenger/km (domestic) 0.186 kgCO2e/passenger/km (short-haul) 0.176 kgCO2e/passenger/km (international)	169,430.4
- Train	It considers the impacts linked to the use of trains as a means of transport. This is calculated for national rail. Both the number of internships and the total number of km traveled are taken into account.	[33]	0.035 kgCO2e/passenger/km	336.0
Artwork transport				1,465,240.1
- Truck	It considers the impacts linked to the transport of artwork by trucks (to and from the museum). Artworks coming from the same origin are considered to be transported together. The number of km is taken into account.	[35]	0.594 kgCO2e/km	1984.0
- Plane	It considers the impacts linked to the transport of artwork by plane (to and from the museum). Artworks coming from the same origin are considered to be transported together and the only cargo on the aircraft. The number of km is taken into account.	[35] (The conversion factor used to calculate the emissions linked to the use of kerosene has been obtained from [35]. However, this factor was expressed in kgCO2e/L, for which it was necessary to know the average number of liters of kerosene used in aircraft. From the official Boeing website, we obtain information on the 747–400 model, with a capacity of 216,840 L of fuel and a maximum range of 13,445 km. If we assume that 30% of the fuel is left as surplus for safety reasons, we would obtain a fuel consumption of 12.4 L/km. This value has been set as representative of the consumption of an aircraft, although it is true that this varies according to the type of aircraft, the load, functionality (commercial, cargo, mixed), etc.)	2.539 kgCO2e/L	1,463,256.2
Exhibition’s material				42,668.3
- Varnish	It considers the impact linked to all activities that start at the gate of the process that produces acrylic varnish and ends with the supply of the product to the museum. Transport is included.	SimaPro version 9.5 (The software provided us with the information expressed in kg CO2e for each kg of varnish produced. The museum’s consumption data were in liters of varnish. Therefore, the conversion factor kg/l = 1.3 was used.)	1.97 kgCO2e/kg	284.5
- Wood packaging	It considers the impact linked to all activities that start at the gate of the process that produces plywood and ends with the supply of the product to the museum. Transport is included.	SimaPro (The software provided us with the information expressed in kg CO2e for each m3 of plywood produced. The museum’s consumption data were in kg of plywood. Therefore, the conversion factor m3/ton = 2 was used.)	491 kgCO2e/m3	40,980.0
- Neoprene	It considers the impact linked to all activities that start at the gate of the process that produces synthetic rubber and ends with the supply of the product to the museum. Transport is included.	SimaPro version 9.5	2.72 kgCO2e/kg	313.3
- Wood MDF	It considers the impact linked to all activities that start at the gate of the process that produces medium-density fiberboard (MDF) and ends with the supply of the product to the museum. Transport is included.	SimaPro (The software provided us with the information expressed in kg CO2e for each m3 of wood MDF produced. The museum’s consumption data were in kg of wood MDF. Therefore, the conversion factor m3/ton = 2 was used.)	641 kgCO2e/m3	969.2
- Plexiglass	It considers the impact linked to all activities that start at the gate of the process that produces flat glass and ends with the supply of the product to the museum. Transport is included.	SimaPro	1.07 kgCO2e/kg	121.2
Total annual emissions				1,990,490.2

Source: own elaboration.

and Figure 3). To calculate the impact, in general, the system boundaries have been set from the purchase of the products (including their transport to the museum facilities) to the use phase over the course of the annual regular activity.

The cost of environmental externalities resulting from the regular activity of PGC has also been calculated. This means to attribute an economic value to CO₂ emissions, mainly related to social cost, i.e., the monetized value of the damages to society caused by an incremental metric tonne of CO₂ emissions. Therefore, externalities are calculated by multiplying the unit price (e.g., EUR/tonne CO₂) by the estimated externality volume (e.g., additional tonnes of CO₂). For this, two sources have been considered (

Table 5. Economic value of PGC CO₂e emissions—annual regular activities.

Categories	Economic Value of CO2e Emissions (EUR)
	(1) EUR55.5/t CO2e	(2) EUR162.3/t CO2e
Gas consumption	4610.7	13,481.5
Electricity consumption	12,580.1	36,783.9
Water consumption	150.8	440.8
Septic sludge waste production	19.7	57.7
Internships	9422.0	27,549.8
- Plane	9403.4	27,495.3
- Train	18.7	54.5
Artwork transport	81,320.8	237,780.2
- Plane	81,210.7	322.0
- Truck	110.1	237,458.2
Exhibition’s materials	2368.1	6924.2
- Varnish	15.8	46.2
- Wood packaging	2274.4	6650.3
- Neoprene	17.4	50.9
- Wood MDF	53.8	127.3
- Plexiglass	6.7	19.7
Total economic value	110,472.2	323,018.2

Source: own elaboration.

). Firstly (1), the average value of the range proposed by the European Bank for Reconstruction and Development (EBRD) for 2020 and recommended by the High-Level Commission on Carbon Prices has been employed. The range is EUR 37-74 [36], and the average value used in this analysis is EUR 55.5 per metric tonne of CO₂e. The second way (2) to monetize the externalities from the current activities of PGC is based on a recent report [37] that attributes a higher cost for CO₂ emissions. It includes improved probabilistic socio-economic projections, climate models, damage functions, and discounting methods that collectively reflect theoretically consistent valuation of risk. The proposed estimate is EUR 162.3 per tonne of CO₂ (USD 185 per tonne of CO₂ (USD 44–USD 413 per tCO₂: 5–95% range, 2020 US dollars)).

From Table 5 it can be observed that with the second method of monetizing the environmental impact of the museum, the value obtained (EUR 323,018) is approximately three times higher than with the first method (EUR 110,472). When interpreting these results, it is necessary to bear in mind that the second approach includes many more aspects when quantifying the social cost. The results of the previous stage allow us to carry out an analysis of which of the activities that characterize the annual operation of the museum have the greatest environmental impact in terms of emissions and, therefore, which will have the greatest social cost.

As can be seen in Figure 4, the greatest emissions are linked to transport, specifically the transport of the works of art that will appear in the exhibitions. Although most of the works come from other parts of the Italian peninsula, those in international museums must be transported by air. This accounts for most of the emissions in this category.

The museum’s annual electricity consumption is the second-highest emitter. Although the impact linked to the electricity distribution to the museum has also been quantified here, the greatest part of the impact is associated with the consumption at the museum facilities.

The third category with which the greatest environmental impact is associated is related to internships. This refers to the transport of these people from the museum to their place of origin. As most of them come from outside Italy, mainly European countries, a plane is the most used means of transport. Hence, there is a high level of emissions.

The remaining categories considered (materials used in exhibitions, gas consumption, water consumption, and sewage sludge production) have a much lower level of emissions, especially the last two, whose impact is residual.

Considering how the emissions associated with the PGC are distributed is a valuable source of information not only to know the current impact of the museum in each of the determinants for its operation, but also to reflect on how to reduce those with greater weight in the number of emissions. In this case, as mentioned, the PGC associates most of the impact with transport. A rethinking of the logistics of artworks, finding alternative means of transport, or holding more exhibitions with national artworks could be seen as solutions. On the other hand, with regard to emissions linked to the internal functioning of the museum, in particular the consumption of electricity, it is perhaps easier to act. Continuing with the policy of changing the lighting and generally betting on a more efficient electrical system is a solution.

3.3. Economic Sustainability Analysis and Econometric Valuation

To compute the value generated by the PGC visitors and impacting the local economy, a micro-econometric approach has been adopted.

Surveys were administered to the PGC visitors over the period April–July 2023 to elicit two main types of information:

(1)

Whether the choice of visiting Venice was mostly driven by the desire to visit the PGC.

(2)

Information regarding tourism and cultural consumption habits (for instance, number of days spent in the city, expected/estimated budget for the stay, and so on).

A few socio-economic questions proved to be useful for designing the visitors’ profiles. A total of around a thousand people were interviewed, and the response rate was 10%, so we gathered 100 surveys.

Once the survey was completed, a dataset was created. Descriptive statistics of the main variables of visitors to PGC are shown in

Table 6. Descriptive statistics of the variables.

Variable	Mean	Standard Deviation	Min	Max
Number of visits to Venice in the respondent’s life	3.31	3.24	1	20
Number of days in Venice during the current visit	4.05	2.86	1	26
Total expenditures for each stay in EUR	1617	1554.1	100	10,000
Total expenditures for accommodation in EUR	728	784.71	0	3000
Total expenditures for food in EUR	363.5	357.25	0	2000
Total expenditures for shopping in EUR	339.5	566.95	0	4500
Total expenditures for culture in EUR	141.25	113.00	25	500
Other expenditures in EUR	39.75	102.25	0	600
Age	46.23	17.96	17	83
PGC decisive for visiting Venice this time	YES = 38% NO = 62%
Education	High School Degree = 16%; Bachelor Degree = 53%; Master Degree = 21%; Ph.D. = 10%.
Nationality	British (10%); Chinese (5%); U.S. (11%); Australian (2%); Austrian (6%); Belgian (5%); Bulgarian (1%); Canadian (3%); Dutch (4%); French (11%); German (22%); Irish (2%); Italian (5%); Korean (1%); Maltese (1%); Mexican (1%); New Zealander (2%); Norwegian (1%); Polish (1%); Russian (2%); Spanish (2%); Turkish (2%).
Job	Book editor (1%); CEO (2%); company owner (1%); H.R. manager (2%); legal clerk (1%); architect (7%); archivist (1%); art collector (1%); art dealer (1%); bank manager (2%); city planner (1%); consultant (2%); e-commerce business person (1%); engineer (2%); event manager (2%); fashion designer (1%); film producer (1%); fiscal accountant (1%); graphic designer (1%); hair dresser (1%); housewife (4%); interior designer (1%); investor (1%); journalist (1%); lawyer (2%); marketing manager (2%); medical doctor (2%); model (1%); musician (2%); project manager (1%); psychologist (2%); researcher (2%); retired (9%); sales manager (1%); scientist (1%); clerk (1%); start-up developer (1%); student (15%); teacher (12%); university assistant (1%); university professor (5%); writer (1%).

Source: own elaboration.

.

The econometrics has followed a two-step procedure. We first regressed a simple probit model (A probit model estimates the probability that a certain event occurs and estimates what variables positively or negatively affect the probability that the event occurs. We were primarily interested in estimating a set of simple relationships between the probability that a visitor chooses mostly to come to Venice to visit the PGC and some explanatory variables. A (general) relationship can be modeled as follows: Equation (1) P{yi = 1|xi} = G(xi, β) for some functions G(.). Equation (1) says that the probability of having yi = 1 (coming to Venice mostly to visit the PGC) depends on the vector xi containing characteristics and variables that positively or negatively affect that probability. The probit model is then estimated by maximum likelihood). Such a model can estimate, for example, the probability that traveling to Venice is mostly driven by the choice to visit the PGC as a function of several socio-economic and tourism/cultural variables, derived from the surveys. The purpose of the estimation is to understand what variables affect the choice to visit the PGC. The statistical diagnostics ensures the goodness of fit of the estimates.

Table 7. Empirical results of the econometric model for PGC.

Variable	Estimated Coefficient	Marginal Effect (dy/dx)
Number of days in Venice	0.17 ***	0.05 ***
Number of visits to Venice	0.07	0.02
Total expenditures for accommodation in EUR	−0.001 ***	−0.004 ***
Total expenditures for food in EUR	0.001	−0.004
Total expenditures for culture in EUR	0.003 ***	0.001 ***
Master’s degree	−2.93 ***	−1.00 ***
British	0.44	0.15
French	0.60	0.20
H.R. Manager	−1.46 *	−0.49 *
Psychologist	2.85 **	0.96 **
Retired	−1.03 *	−0.35 *
Student	0.42 *	0.14 *
University Professor	0.86 *	0.29 *
Age	0.17 *	0.005 *
Constant	−2.01 ***	-
Diagnostics	LR chi2(14) = 35.03 Prob > chi2 = 0.0015 Log likelihood = −48.88 Pseudo-R2 = 0.26

Source: own elaboration. *** = 1% statistically significant; ** = 5% statistically significant; * = 10% statistically significant.

reports selected empirical results. The estimated coefficient is an estimate that a particular variable has on the probability of a visit to Venice being driven by a desire to go to the PGC, while the marginal effect measures the change in probability as a consequence of a small change in the variable. So, for example, a one-day increase in the number of days spent in Venice will, other things being equal, increase the probability that the visit was primarily driven by a desire to go to the PGC by 0.05. The stars near the estimate indicate that the effect is statistically significant.

Column 2 reports estimated coefficients. The probability that the respondent has chosen to travel to Venice mostly to visit the PGC is positively affected by the following characteristics: (1) staying longer in Venice, (2) having visited Venice many times, (3) spending on food, (4) being British and French, (5) working as a psychologist or university professor or being a student.

The probability that the respondent has chosen to travel to Venice mostly to visit the PGC is negatively affected by the following characteristics: (1) spending on accommodation, (2) having a master’s degree, (3) working as a human resources manager or being retired.

The interpretation of the results suggests that the PGC is a “secondary” cultural experience in Venice. Therefore, the probability that a visitor chooses to travel to Venice with the main purpose of visiting the collection is positive when the very same visitor has already “consumed” other key cultural spots in Venice, by having already visited the city other times (and this also involves being of more advanced age) or by staying longer periods of time. British or French nationality positively affects the (probabilistic) choice to travel to Venice to visit the PGC because of the personal and cultural links of Peggy Guggenheim with France and the UK.

Column 3 reports marginal effects computed for the mean of the estimated coefficients. Selected results are interpreted as follows: The probability of traveling to the city mostly for visiting the PGC increases by 5% for longer stays, by 20% if the visitor is French, by 15% if the visitor is British, and so on (Note that the mean probability is 0.38. So, a 5% increase raises it to 0.3885, not to 0.43. It is 5% increase on 0.38, not an addition of 5%).

Once the profile of the “typical” PGC visitor has been sketched, the procedure for estimating the direct economic impacts of the PGC on the local economy has been built on the following steps:

(1)

First, a linear empirical model describing the causal relationship between total visitors’ expenditures and all socio-economic and touristic/cultural variables has been estimated with OLS (In the case of the simple linear model, the general form is total visitors = f(socio-economic and touristic and cultural variables). The model is estimated with OLS).

(2)

Second, the estimated coefficient for the variable PGC_yes (that is the dummy variable, with the PGC being the main reason to travel to Venice) has been computed. This equals 0.12, and it is 5% statistically significant. This implies that if the main motivation to travel to Venice is visiting the PGC, then the visitors’ total expenditures are 12% higher than if the main motivation to visit is not going to the PGC.

(3)

Third, we have gathered data on tourists’ average expenditure per day (EUR 200) and average stay in the city (2.66 days). The 2020 figures (the most recent up to now) are retrieved from a 2022 CISET report. Total expenditures equal EUR 532. The additional, marginal increment incentivized by the PGC is 12% (EUR 63.64). Therefore, the visitors coming to Venice for the PGC spend EUR 595.64.

(4)

Fourth, we retrieved the PGC primary data on the number of visitors per year from 2016 to 2022. Thirty-seven percent of the survey respondents have declared traveling to Venice mostly to visit the PGC.

This allows us to compute the economic impact, for selected years, of the PGC on the local economy in EUR. The figures emerge as follows (

Table 8. Estimated expenditures in Venice attributable to a desire to visit the PGC (EUR).

2016	2017	2018	2019	2020	2021	2022
93,592,315	96,712,280	85,153,885	79,329,122	3,376,952	34,042,017	86,321,340

Note: In order to contextualize the results, it is worth mentioning that Venice’s 2019 GDP equals EUR 5.6 billion [38]. This implies that the 2019 direct contribution of the PGC-driven visitors to Venice’s GDP is 1.4%. Source: own elaboration.

).

Those values do not include the museum profits that are computed annually by the museum accountants and published in the PGC annual report.

3.4. Economic Sustainability Analysis Input–Output Valuation

Measuring the economic sustainability of a museum is also relevant to determining its contribution to the economy of the city in which it is located. Different methodologies can be used. We have conducted an input–output analysis (The input–output model is an analytical framework that was first proposed by Leontief. Through a system of linear equations, it defines the sectoral relations of an economy by capturing interdependence within the production system. Specifically, the application of this model requires the use of an input–output table, a database for a geographic region or country that reflects the activity of all industries. In this table, there is detailed information on the consumption of goods made by all sectors from other sectors (inputs) and the production of goods used by other sectors (outputs) or by final demand, i.e., private consumption, public consumption, investment, and other variables) that estimated the wider impacts of the museum in terms of GDP, employment, and net public finance revenue. More specifically, input–output analysis allows the direct, indirect, and induced economic impact of the PGC on the local economy to be computed and to assess the distribution of that value across sectors. It assesses the increased wealth in the Veneto region derived from the activity generated by the museum, the average number of job equivalents to be maintained annually due to activity generated, and the increase in net public finance revenue (see Figure 5).

Direct impacts are those arising from visitors spending both inside and outside the PGC. Indirect impacts refer to the adjustments in the level of production of the other sectors because of input–output methods’ increased input demand from the PGC. Induced impacts are those generated by the carry-over effect of the income–consumption interaction. They thus determine the effect of investments/expenditures on households and not on productive sectors as in the two previous cases (The methodology is in line with the methodology applied for the Guggenheim Museum Bilbao. The only difference with respect to the Bilbao case is that, for the PGC, expenditure on transport was not included in the survey. In our analysis, we decided to leave out the transport expenditure because it is not paid in the Venice region).

Data were provided by the PGC staff upon request. They included information on the revenues from the main economic activities, such as ticket sales, museum shop sales, expenditure in the museum’s restaurant, and expenditures on shopping, among others.

Input–output tables are provided at the national level by Istat (https://www.istat.it/it/archivio/278901 [accessed on 5 September 2023]). The symmetric table has been adjusted to reflect as closely as possible the economic structure of the Veneto region (It is usual in the literature to divide the values in the national table by the 20 regions that make up Italy. However, in this study, we have adjusted the values more accurately by estimating the weight of the Veneto economy in the country as a whole and applying that percentage). The final demand generated by the PGC’s activities in 2022 amounted to EUR 617.46 million. Of this total amount, 9.9 million was spent inside the museum (tickets, guided tours, shop, special events, etc.), while spending outside the museum during visits was EUR 607.53 million, with the hospitality sector (accommodation and catering) having the greatest impact (

Table 9. Final demand generated by the PGC’s activities in 2022.

		2022 Demand (in EUR)
					Total
Expenditure Inside the Museum	Ticket sales	4,897,945			9,933,243
	Museum shop sales	1,849,321
	Expenditure in the museum’s restaurant	413,000
	Subscriptions, sponsorships, and grants	2,280,564
	Other revenues (guided tours and audio guide + renting museum spaces for location + exhibition fee)	492,413
Expenditure Outside the Museum		No. Visitors	Average expenditure (EUR)	Total expenditure
	Spending by museum’s visitors on accommodation	381,374	664	253,232,336	607,528,782
	Expenditure on food		379	144,540,746
	Expenditure on shopping		353	134,625,022
	Expenditure on leisure and other activities		197	75,130,678
TOTAL DEMAND					617,462,025

Source. own elaboration based on the survey and PGC’s internal information.

).

The impact of expenditure on transport had been included would be even greater. However, in our analysis, this was not included because the transport expenditure is not paid in the Venice region.

Except for the COVID-19 years (2020 and 2021), all other years since 2016 follow a similar trend (

Table 10. Final demand generated by the PGC’s activities from 2016 until 2022.

Final Demand Generated by the PGC’s Activities from 2016 until 2022 (EUR)
2016	667,291,397
2017	689,365,189
2018	607,290,013
2019	566,334,912
2020	152,958,059
2021	244,876,169
2022	617,462,025

Source: own elaboration based on the survey and PGC’s information.

).

The details for the calculation of the final demand for the remaining years analyzed (2016–2021) are available upon request from the authors

(1)

Impacts on GDP

The fact that Venice has the PGC means that the Veneto economy benefits beyond this final demand, because of the carry-over effects. By type of impact,

Table 11. Impacts of the PGC on GDP (EUR 1 million, current prices, 2016–2022).

	Impacts on GDP (EUR 1 million)
	Direct	Indirect	Induced	TOTAL	Multiplier
2016	667.29	614.34	7.4	1289.03	1.93
2017	689.37	634.69	7.64	1331.70
2018	607.29	559.08	6.73	1173,10
2019	566.33	521.35	6.28	1093.97
2020	152.96	140.40	1.71	295.06
2021	244.88	225.19	2.72	472.79
2022	394.23	633.97	7.64	1192.68

Source: own elaboration based on input–output tables.

summarizes the results obtained for the Veneto economy. The columns show the direct, indirect, induced, and total (sum of the three above) impacts. The column “Multiplier” indicates the carry-over effect on output (GDP). That is the effect on GDP for each euro spent at the PGC.

The calculations show that for every euro spent in the museum, an increase in GDP of EUR 1.93 is generated. To the direct effect must be added the impacts generated by the carry-over effect on the productive sectors (indirect impact) and those derived from the increase in consumption because of the increase in household income (induced impact). Considering indirect and induced impacts when analyzing economic impacts is therefore not a trivial matter.

More specifically, when the impacts are disaggregated by sectors (The final symmetric table is broken down into 63 productive branches or sectors (NACE code). However, no employment data are provided for this level of disaggregation (http://dati.istat.it/Index.aspx?QueryId=12581&lang=en [accessed on 6 September 2023]). Therefore, and also to facilitate the analysis of the results, the impacts are presented for a lower level of disaggregation (full details are given in Appendix B). These values have also been adjusted at the regional level) (

Table 12. Impacts of the PGC on GDP by sectors (EUR 1 million, current prices, 2022).

	Impacts on GDP (EUR 1 Million, 2022)—by Industries
	Direct	Indirect	Induced	Total
Trade, hotels and restaurants, and accommodation	101.41	85.94	0.95	419.07
Consumer goods industry	82.71	84.31	0.09	167.11
Financial institutions, insurance, real estate, and business services	54.95	173.48	1.15	155.64
Manufacturing industry	28.11	91.03	0.95	120.09
Transport, storage, and communication	40.90	73.51	0.90	115.31
Art, entertainment, and recreation	84.76	25.08	0.03	109.87
Primary sector and extractive industries	0.02	40.37	0.46	40.86
Electricity, gas, steam, and air conditioning supply; water supply and sewerage activities; waste management	0.00	32.64	2.92	35.56
Public administration, defense, and R&D	0.46	13.97	0.07	14.49
Construction	0.00	11.12	0.10	11.21
Community, social, and personal services	0.91	2.53	0.02	3.47

Source: own elaboration based on input–output tables.

, the results lead to the same conclusion: indirect and induced impacts are important and should not be ignored).

In terms of total impact, the sectors where the largest additional increases in GDP are located are ‘Trade, hotels and restaurants, and accommodation’, ‘Consumer goods industry’, ‘Financial institutions, insurance, real estate, and business services’, and ‘Manufacturing industry’. The latter two appear at the top of the list because of their weight in indirect impacts. This result makes sense insofar as these are sectors that “support” or are needed by hotels, restaurants, and accommodation companies to develop their activity.

(2)

Impacts on Employment

The PGC is associated with 8169 jobs in 2022 (

Table 13. Impacts of the PGC on employment (No. of jobs, 2016–2022).

	Impacts on Employment (No. of Jobs)
	Direct + Indirect	Induced	Total
2016	8785	24	8810
2017	9069	25	9094
2018	8016	23	8038
2019	8145	23	8168
2020	2188	9	2197
2021	3366	11	3377
2022	8146	23	8169

Source: own elaboration based on input–output tables.

). This figure has remained constant over time, except in 2020 and 2021. However, these figures are distorted by the effect of the pandemic, which hit a sector as dependent on tourism as this one.

By sectors (

Table 14. Impacts of the PGC on employment by sectors (No. of jobs, 2022).

	Impacts on Employment (No. of Jobs, 2022)—by Industries
	Direct + Indirect	Induced	Total
Trade, hotels and restaurants, and accommodation	4273	3	4277
Financial institutions, insurance, real estate, and business services	1338	7	1345
Art, entertainment, and recreation	719	0	719
Consumer goods industry	495	0	496
Primary sector	382	1	383
Manufacturing industry	373	2	375
Transport, storage, and communication	220	4	224
Public administration, defense, and R&D	144	1	145
Construction	83	1	83
Electricity, gas, steam, and air conditioning supply; water supply and sewerage activities; waste management	65	3	67
Community, social, and personal services	53	0	53

Source: own elaboration based on input–output tables.

), there is a net increase in all sectors. Considering that around 60% of employment (employed population) in the Veneto region corresponds to the services sector, the greatest contribution to employment is made by this sector (in order of highest to lowest, ‘Trade, hotels and restaurants, and accommodation’, ‘Financial institutions, insurance, real estate, and business services’, and ‘Art, entertainment, and recreation’).

(3)

Impacts on Public Finances—Taxes Minus Subsidies

The PGC generated EUR 148.45 million of net public finance revenue in 2022 (

Table 15. Impacts of the PGC on net public finance revenue (EUR 1 million, current prices, 2016-2022).

	Impacts on public finances (EUR 1 Million)
	Direct + Indirect	Induced	Total
2016	148.13	0.33	148.45
2017	152.78	0.34	153.11
2018	135.43	0.31	135.74
2019	126.77	0.30	127.06
2020	39.49	0.16	39.66
2021	58.83	0.19	59.02
2022	148.13	0.33	148.45

Source: own elaboration based on input–output tables.

). Taxes refer to taxes on production (i.e., corporate taxes).

All sectors contribute positively to public finances (

Table 16. Impacts of the PGC on net public finance revenue by sectors (EUR 1 million, current prices, 2022).

	Impacts on Net Revenues (EUR 1 Million, 2022)—by Industries
	Direct + Indirect	Induced	Total
Trade, hotels and restaurants, and accommodation	54.83	0.04	54.87
Art, entertainment, and recreation	36.36	0.01	36.37
Financial institutions, insurance, real estate, and business services	24.14	0.15	24.29
Consumer goods industry	10.31	0.01	10.32
Transport, storage, and communication	6.63	0.11	6.74
Primary sector	4.97	0.04	5.01
Public administration, defense, and R&D	4.82	0.02	4.84
Manufacturing industry	3.45	0.02	3.47
Construction	1.28	0.01	1.29
Community, social, and personal services	0.69	0.01	0.69
Electricity, gas, steam, and air conditioning supply; water supply and sewerage activities; waste management	0.65	−0.09	0.55

Source: own elaboration based on input–output tables.

). Again, the sectors that contribute the most are the same as in the case of GDP and employment. The fact that induced impacts are lower makes sense in the context of this study: taxes refer to taxes on production, while induced impacts come mainly from higher household spending on consumer goods because of higher income. Therefore, it is possible that the higher induced impact would be felt in taxes, such as VAT, but not so much in taxes on production.

Details of the impacts on GDP, employment, and net public finance revenue by sector from 2016 to 2021 can be found in Appendix C.

4. Discussion: Museums’ Sustainable Performance and SDGs

Museums can be engines of economic development (through cultural industries, cultural tourism, and traditional livelihoods), as well as contributors to social cohesion, natural environment sustainability, and resilient communities. Many museums are now overstretched and financially weak and therefore vulnerable to decline. To evaluate the economic sustainability of a museum, costs and benefits from its activity must be considered. The main economic indicators considered for measuring the cost side are capital costs and operating costs. On the benefit side, there are different ways to generate revenue: from tickets and subscriptions to voluntary contributions, from facility management projects (cafeteria, restaurant, bookshop, and gift shop) to paid collateral and parallel events (guided tours with theatrical performances, dinners, themed workshops, etc.) [15].

The increasing role of environmental sustainability of these institutions over time has been proven through the set of initiatives and reports that have been carried out by them. In general, the most important environmental issue covered is climate change, which is induced and exacerbated by CO₂ and other pollutant emissions. Other issues (marginally) covered, refer to air pollution, energy efficiency, and water management, all issues that refer to proper modern management of resource scarcity for the sake of conservation for future generations.

The main findings about the institutions analyzed in terms of sustainability initiatives are shown below (

Table 17. Sustainable practices by leading museums.

Guggenheim Museum Bilbao	- ISO 14001 environmental management certification (2004). - Strategic Framework for Environmental Sustainability (2021) and Sustainability Action Plan (2022). - Museum’s Exhibition Programme including a line of action that reflects on the environment and promotes ecological awareness. - Measurement of carbon footprint and carbon offset. - Reduction of consumption of energy and raw materials. - Other initiatives: participation in international climate change forums, installation of charging posts for electric vehicles, programs to raise public awareness, etc.
Thyssen Museum (Madrid) and Museum Nacional d’Art de Catalunya—MNAC (Barcelona)	Both institutions publish sustainability reports based on GRI indicators. The difference is in the number of these indicators that are covered. Relating to the environmental ones, the MNAC reports 87.5% of the corresponding indicators, while Thyssen Museum only includes 25%.
Natural History Museum (London)	- Environmental sustainability reports since 2012 with reduction objectives in terms of carbon emissions, energy consumption, waste, water, travel, etc. - Strategy 2031 to face the planetary emergency. - Initiatives: solar panels, green electricity, reduced printing and mailings, food waste recycling, furniture reuse.
UK Museums Association	This association runs consultation services, discussion workshops, and discussion papers about sustainability and museums.
Australian Museums	Museums Australia has released a set of sustainability guidelines. The guidelines outline how museum practices in the areas of education and advocacy, decision-making, activities, policies, operations, and functions can contribute to community sustainability. The guidelines also contain practical applications for creating a sustainable museum in the areas of the economy, collection management, education, waste, water and energy management, etc.
The Netherland Museums Association	This association looks for sustainability in museums, encouraging initiatives such as a platform for sharing and reusing material for exhibitions.

Source: [16,23,24,39,40].

).

The Peggy Guggenheim Collection is revealed to be a very sustainable institution since the economic benefits generated by the museum activities largely offset the environmental costs. This has an impact in terms of strengthening the SDG objectives since the quality of the PGC’s performance can be assessed and interpreted as SDG implementation and mainstreaming.

The results of the LCA show that the activities that characterize the annual operation of the museum have the greatest environmental impact in terms of emissions and, therefore, will have the greatest social cost. The greatest emissions are linked to transport, specifically the transport of the works of art that will appear in the exhibitions. Although most of the works come from other parts of the Italian peninsula, those in international museums must be transported by air. This accounts for most of the emissions in this category. The museum’s annual electricity consumption is the second-highest emitter. Although the impact linked to the electricity distribution to the museum has also been quantified here, the greatest part of the impact is associated with the consumption at the museum facilities. The third category with which the greatest environmental impact is associated is related to internships. This refers to the transport of these people from the museum to their place of origin. As most of them come from outside Italy, mainly European countries, a plane is the most used means of transport. Hence, there is a high level of emissions. The remaining categories considered (materials used in exhibitions, gas consumption, water consumption, and sewage sludge production) have a much lower level of emissions, especially the last two, whose impact is residual.

At the same time, the economic positive impacts come at the (general problem in Venice) cost of over-tourism, city congestion, and anthropogenic pressures. It is worth, however, highlighting that the profile of the typical PGC-driven visitor in Venice is the one of a highly educated European with a high expenditure budget. Comparing both the environmental and economic impacts of the PGC, it can be concluded that the annual activities performed by the museum are highly sustainable, with the economic pillar strongly offsetting the costs generated using natural resources. The creation of economic value, therefore, is generated in respect of the environmental boundaries, even if some minor flaws can be highlighted.

The findings help define the segment of cultural demand for the PGC and better target the museum strategy accordingly. The “segmented” effect that has been found with the economic analysis could be further incentivized and aligned with the museum’s objectives and mission. In general, segmenting demand means “capturing” a more inelastic segment of demand. This implies that goods and services are supplied to a lower number of consumers with a higher willingness to pay for those goods and services and a lower reactivity to price changes. In this perspective, a slight increase (5 to 10%) in the entry ticket price might raise important revenues while attracting only those with a higher willingness to pay, and therefore a higher motivation and preference to visit the PGC as a cultural experience of high value. At the same time, the decline in the number of visitors is likely to be small (especially if special prices are set for groups such as students).

As an alternative, an additional ticket for the temporary exhibitions could be issued, to disentangle the visitors of the permanent collection from those only interested in visiting the temporary exhibitions (or both “products”).

The economic impacts of the museum on the city of Venice economy are remarkable. It is worth signaling that on Tuesdays, during the museum’s weekly closing day, most economic activities in the neighborhood (restaurants, bars, pubs, gift shops) are also closed. Again, the economic value that is directly created from the PGC equals around 1.2/1.4% of the city’s GDP and is the outcome of well-administered policies that have been implemented over the years.

The connection between museums and cultural sustainability is highly recognized [20] and includes the commitment of museums, including the PGC, to achieve and implement SDG 4 (“Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all”), SDG 11 (“Make cities and human settlements inclusive, safe, resilient and sustainable”), and SDG 16 (“Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels”).

In addition, the environmental and economic efficiency, pursued by the PGC through a set of sustainable practices described in previous sections, increases the link with many more SDGs. Those are SDG 6 (‘Clean water and sanitation—Ensure availability and sustainable management of water and sanitation for all’), SDG 7(‘Affordable and clean energy—ensure access to affordable, reliable, sustainable and modern energy for all’), SDG 8 (‘Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all’), SDG 12 (‘Responsible consumption and production—Ensure sustainable consumption and production patterns’), and SDG 13 (‘Climate action—take urgent action to combat climate change and its impacts’).

5. Concluding Remarks

The study has assessed the environmental and economic sustainability of the PGC. Venice with a view to assessing the PGC’s sustainability and commitment to implementing selected SDGs. To assess environmental sustainability, a life cycle assessment (LCA) has been carried out. The results provide the number of annual CO₂e (and other pollutants) emissions linked to the regular activity of the museum. The environmental cost (in EUR), linked to the impacts obtained from LCA, has been calculated (attributing two values to CO₂ emissions, according to two different sources). To assess economic sustainability, we have used econometric methods for measuring the value directly generated by the museum and input/output analysis for computing the direct and indirect impacts on the local economy. In addition, we have used input–output methods to track the effects of visits to the museum on other sectors of the economy. From the econometric analysis, we conclude that the PGC is a “secondary” cultural experience in Venice. This means that the probability of a visitor choosing to travel to Venice with the main purpose of visiting the collection (this is the dependent variable of the econometric model built in this assessment) is positive when the very same visitor has already “consumed” other key cultural spots in Venice, by having already visited the city other times or by staying longer periods of time. Nonetheless, the PGC attractiveness capability (in terms of tourists that come to Venice to visit the PGC as the main reason) contributes to around 1.2/1.4% of the annual GDP of the city. The results from the input/output analysis show that the final demand resulting from the PGC is estimated at an average of 620 million. The economic impacts derived from the PGC are significant and very positive. Specifically, the PGC leads to an increase in GDP of around EUR 1.200 million, with a multiplier of 1.9. In terms of employment, around 8200 jobs are created. The net public finance revenue also clearly benefits, with a net income of around EUR 150 million per year.

The main implications of the work, on how it supports the SDGs, refer to the fundamental principle according to which it is not possible to manage what is not measured. The essence of SDGs refers to taking and implementing actions that are heading to a sustainable future. The additional value and main implication of this paper is using scientific tools and methods to measure and assess reality to better advise on the strategies that lead to the SDGs’ implementation. All of the strategies and actions are listed in the study, and we do not stress them again here. As an example, however, the PGC environmental sustainability dimension shows a great deal of implementation of good environmental practices, in line with SDGs 6, 7, 12, and 13, with a main impact referring to CO₂ generation for the transportation of the works. The knowledge of the amount of emitted CO₂ helps target and define choices and strategies with the view of implementing those SDGs. The PGC economic sustainability computations show the capability of a cultural institution (within a highly competitive environment) to create value and wealth for the city, and this is the outcome of a very strategized series of practices that aim at implementing SDG 8

The main limitation of the study refers to the social sustainability of the PGC. The social sustainability pillar has so far not been valued, since the quantitative assessment of the PGC social sustainability lies outside the scope of the present report. However, the measurement of the PGC social sustainability should be implemented, since it implies accounting in monetary terms for many key activities and impacts. Those include, among others, the PGC education programs for children, highlighting the important effects on the formation of cultural preferences, on the supply of a public good, and on the formation of future skilled labor, contributing to economic growth, according to the economic theories on endogenous growth. It is demonstrated, in fact, that a better educational level, including cultural education, improves labor skills and future productivity [41]. In addition, the PGC is very active in promoting inclusivity and in abating any kinds of access barriers. This allows a broad fruition of the collection by any kind of diversity. This should represent further research with a follow-up study that completes the valuation endeavor.

The PGC seems highly sustainable. Sustainability deals with finding a current equilibrium of the use of resources with a view to transmitting those resources to future generations. This concept of transference of (cultural) resources to future generations is endogenous to the very core of Peggy Guggenheim’s private collection donation to the city of Venice for the fruition of future generations. The impacts of the donation, however, go well beyond the fruition of the masterpieces contained in the museum and create value for the city at some (controlled) environmental costs.

This is the core of sustainability.