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Public Libraries and Valuation How the Norwegian Population Values their Public Libraries

Public Libraries and Valuation How the Norwegian Population Values their Public Libraries. Svanhild Aabø Oslo University College. Overall or Social Impact of the Public Library:. Social role Confidence in individuals and communities Community ownership Equity in service delivery

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Public Libraries and Valuation How the Norwegian Population Values their Public Libraries

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  1. Public Libraries and ValuationHow the Norwegian Population Values their Public Libraries Svanhild Aabø Oslo University College

  2. Overall or Social Impact of the Public Library: • Social role • Confidence in individuals and communities • Community ownership • Equity in service delivery • Educational role • Reading and literacy • Economic impact (Linley and Usherwood, 1998)

  3. Economic Value • Not synonymous with financial or commercial value, although it is ultimately expressible in terms of money • Comprises any direct use value of the cultural good • Plus whatever non-market values it may give rise to (Throsby, 2003)

  4. Fundamental Monetary Measures of Value in Economics • Based on substitutability • Can be expressed in terms of - Willingness to pay (WTP) - Willingness to accept compensation (WTA)

  5. The Norwegian Project • Aim - Measure the value of Norwegian public library benefits to the population in monetary terms. - Determine if the benefits of public libraries outweigh the costs to provide them. • Purpose - Provide a better understanding of their total value. - Demonstrate their instrumental as well as democratic and cultural value.

  6. Contingent Valuation of Cultural Goods • Cultural Heritage Cathedrals – Nidaros in Norway, Durham and Lincoln in the UK) Historic monuments in France • Theatres The Royal Theatre in Copenhagen Teatro Colon in Argentina • Museums and Galleries Canada, Switzerland and Australia • National television programming Australia

  7. Public Library in St.Louis, US: Library card holders only Three methods, incl. CV All services Result: Cost-benefit ratio 1:4 University library in Virginia, US. - Both students and teachers - Both users and non-users - Reference desk service only Result: Cost-benefit ratio 1:3.5 Previous Library CV Studies

  8. The Study of Norwegian Public Libraries • A national, representative population sample • 1000 respondents • Top-down design: Overall municipal level  culture library

  9. The Issue of Property Rights to Public Library Benefits • ”Do you think you have a right to have access to a public library in the municipality where you live?” • Yes: 94 % • No: 2 % • Don’t know: 4 %

  10. Valuation Question 1, alt. A Would you support or oppose a proposition of maintaining the public library services in your municipality • If it implied an annual increase in local taxes for your household? (WTP) Subsample1 • If it implied that the saved budget funds were transferred to other municipality tasks benefiting your household? (WTA) Subsample2

  11. Tick Off at Each Line

  12. Valuation Question 1, WTP, Subsample 3 Do you support maintaining the local public library services and are willing to pay .... NOK in additional local taxes to prevent closing down the library? (The bids varied randomly between 100, 300, 500 and 1000 NOK)

  13. Follow-up Question to Response 3 I will pay … NOK to maintain the local library service if I was convinced that the municipality is unable to pay the costs • - within their budget • - without having to reduce services in the health and education sectors. • - I cannot afford to pay anything.

  14. Valuation Question 1 – WTA Subsample 4 Imagine that the municipality council considers two alternatives: • To close down the local library and use the saved budget funds to increase the efforts on other municipality tasks that will benefit your household. • To maintain the local library and also other municipality tasks on today’s level of activity.

  15. Which one of these statements best expresses your answer?

  16. The Value of Norwegian PublicLibraries per Household A range 1 2 3 4 5 |--------|---------|---------|---------| 400 2000 NOK NOK Cost-benefit ratio, appr. 1:4

  17. Library Studies Applying Contingent Valuation

  18. Motivations for Valuing Public Libraries • Self-interest - Direct use value 40 % - Option value 20 % • Social interest - Other persons’ library use 17 % - Cultural and social value 19 %

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