Understanding the Setting's Effect

Read the following excerpt from a fictional prose work:

As the sun dipped below the horizon, the quaint village became bathed in the warm, golden hues of dusk. The sound of laughter echoed from the tavern on the corner, where villagers gathered after a long day of work, sharing stories and toasting to another day gone by. Flickering lanterns began to light up the cobbled streets, casting playful shadows on the older buildings that had stood for centuries, witnessing the cycles of life unfold.

Based on this excerpt, what is the primary effect of the setting described?