Are public libraries worth their price?

Abstract

Purpose-The paper reports from a valuation study of the Norwegian public libraries, aiming to provide a better understanding of their total value, both use and non-use value, as viewed by the population. An objective was to explore whether or not the citizens found that their benefits outweighed the costs to provide them. Design/methodology/approach-The study applies the contingent valuation method, developed in economics to valuate non-market goods. Contingent valuation is based on representative questionnaire surveys and has been used to valuate several cultural goods, including a few library valuation studies. Findings-The empirical data based on a representative population sample demonstrates that the value of the Norwegian public libraries decidedly outweigh their costs. Elicitation of the population's awareness of property rights to their local library showed that an overwhelming majority of the population (94 per cent) perceive they have such rights. The valuation result indicates that the benefits from the public libraries are four times their costs. Research limitations/implications-The method is based on hypothetical markets. More contingent valuation studies of libraries are necessary to refine the measure instruments. The study explores the benefit-cost relation at the national level. Further research is needed for studying the benefit-cost relation at the municipal level. Practical implications-The findings can be used as one way of documenting the value of public libraries to politicians, local authorities and the general public. Originality/value-This appears to be the first contingent valuation study of public libraries at a national level, in Norway and internationally.

Cost-Benefit Analysis and the Environment

“…For example, a small but growing number of studies has focused on services provided by libraries and archives (e.g. Morris et al, 2002;Pung et al, 2004;Jura Consultants, 2005;Aabø 2005;Hájek and Stejskal, 2014;Fujiwara, Lawson and Mourato, 2015). According to Aabø (2009) and Kim (2011), who provide recent reviews of libraries valuation studies, the net benefits provided by libraries seem to be broadly positive although the values vary widely.…”

The Role of Libraries in the Urban Development

“…Для среднего норвежского домовладельца выгода от публичных библиотек в среднем в 4 раза выше, чем стоимость предоставляемых ими платных услуг; это значит, что на каждую крону налогов, потраченную на норвежские библиотеки, население получает эффект, равный 4 кронам [2]. В отношении денежно-кредитной выгоды определено, что публичные библиотеки генерируют эквивалент прибыли, равной 4,24 долл.…”

Using the Contingent Valuation Method for Dollar Valuations of Library Services

“…Another CV survey of public libraries (not cited by Missingham [4]) has recently been reported by Svanhild Aabø, who estimated that Norwegian public libraries represent, on average, a 4 : 1 benefit-cost ratio [27]. This calculation was based on a mixture of WTP and WTA questions, which produced benefit-cost ratios ranging from a little over 1 : 1 to about 5 : 1.…”