The Library Dividend Library Valuation Calculator Mark Donaldson SGS Economics & Planning Libraries...the fourth R State Library of Queensland 18 th Sept 2012

Valuation Elements Measurement Techniques Case Study to Non-case Study Valuation Process Tour of Library Valuation Calculator Outline of Presentation

Cost Benefit Analysis Benefits Less Costs Equals Net Benefits Economic Impact Analysis Direct stimulus Plus indirect (flow ion effects) Total induced economic activity These valuations elements were assessed by using: The Library Statistical Bulletin User & Non-User Surveys SGS in-house modelling processes Valuation Elements Do public libraries provide a net benefit to the Queensland community? How much economic activity do libraries induce in their local economies?

CBA - Benefits Benefits Use Direct use...access to library resources/ services...social interaction Indirect use...sense of place and local amenity...environmental savings...contribution to literacy...contribution to education, career & health Non-use Option Legacy Existence...for future use...for current and future generations

CBA - Measurement Techniques Benefits Use Direct use Travel cost Financial savings Contingent valuation – users Indirect use Non-use Option Legacy Existence Contingent valuation – non-users Deduced from your behaviour

CBA - Measurement Techniques Informing Questions: Travel Cost How far do you travel to the library? How many different places do you access on a visit to the Library? What are your out-of-pocket travel costs for a typical trip to the library (e.g. fares & parking)? How do you travel to the library? How long do you spend in the library?

CBA - Measurement Techniques Benefits Use Direct use Travel cost Financial savings Contingent valuation – users Indirect use Non-use Option Legacy Existence Contingent valuation – non-users Deduced from your behaviour Deduced from your perceived induced savings

CBA - Measurement Techniques Informing Questions: Financial Savings Thinking about your typical library usage over the past twelve months, what do you estimate it would have cost you if you had to pay for the services from private businesses?

CBA - Measurement Techniques Benefits Use Direct use Travel cost Financial savings Contingent valuation – users Indirect use Non-use Option Legacy Existence Contingent valuation – non-users Deduced from your behaviour Deduced from your perceived induced savings Deduced from the amount you would be willing to spend to access the service were it not free

CBA - Measurement Techniques Informing Questions: Contingency Valuation User Survey: Thinking from the broader community perspective, if the public library was not funded by government, how much would you be willing to pay to maintain the community’s access to the current services? Non-user Survey: Thinking from the broader community perspective, if your local public library service was not funded by government, how much would you be willing to pay to maintain the community’s access to the current services?

Cost Benefit Analysis Benefits Less Costs Equals Net Benefits Economic Impact Analysis Direct stimulus Plus indirect (flow ion effects) Total induced economic activity These valuations elements were assessed by using: The Library Statistical Bulletin User & Non-User Surveys SGS in-house modelling processes Valuation Elements Do public libraries provide a net benefit to the Queensland community? How much economic activity do libraries induce in their local economies?

Direct Impacts Recurrent costs of operations Triggered user expenditures Indirect Impacts Total Impacts Local employment Local value added Local output EIA - Measurement Techniques Informed by User Survey question: In the past year, have you made any purchases that were prompted by your use of the library service?

SGS Local Econometric Model Derived from the ABS Publication: Australian National Accounts: Input-Output Tables SGS manipulate the tables using population and employment statistics from the ABS to generate regional IO tables for each library service. The regional IO tables were utilised to generate industry multipliers – used to track economic impacts of the library operating costs and the triggered purchases. EIA – Local Econometric Model

Case study library services Case studySegment population Brisbane Sunshine Coast Fraser Coast Mackay Goondiwindi Paroo Mount Isa Metropolitan High Growth Centre Disadvantaged Centre Regional Centre, Stable Population Small Rural Community (10-25,000) Declining Community (<5,000) Resource Segment

Known Information Recurrent costs of operations (Source: Statistical Bulletin) Population (Source: Statistical Bulletin & ABS) Membership (Source: Statistical Bulletin) Visits (Source: Statistical Bulletin) Calculated economic multipliers (Source: SGS Econometric Model) Derived from Case Studies Library user willingness to pay for the service Library non-user willingness to pay for the service Financial savings to library users Time spent at the library & travelling to the Library Cost of travelling to the library Triggered purchases (for economic impact modelling) Case Study to Non-case Study Valuation Process

Case study allocation Group 1Group 2Group 3Group 4Group 5Group 6Group 7 Metropolitan Regional, Stable population High growthDisadvantaged centre Small rural community Declining community Resource segment Brisbane (C)Mackay (R)Sunshine Coast (R)Fraser Coast (R)Goondiwindi (R)Paroo (S)Mount Isa (C) Gold Coast (C)Toowoomba (R)Cairns (R)Blackall-Tambo (R)Balonne (S)Diamantina (S)Banana (S) Ipswich (C)Rockhampton (R)Whitsunday (R)Bundaberg (R)Burdekin (S)Barcoo (S)Barcaldine (R) Logan (C)Scenic Rim (R)Lockyer Valley (R)Cassowary Coast (R)Hinchinbrook (S)Boulia (S)Burke (S) Moreton Bay (R)Tablelands (R)Townsville (C)Cook (S)Flinders (S)Bulloo (S)Central Highlands (R) Redland (C) Gympie (R)North Burnett (R)Carpentaria (S)Isaac (R) South Burnett (R)Somerset (R)Cloncurry (S)Western Downs (R) Southern Downs (R)Charters Towers (R)Croydon (S)Gladstone (R) Torres (S)Longreach (R)Mornington (S)Weipa (T) McKinlay (S)Winton (S)Maranoa (R) Murweh (S) Quilpie (S) Richmond (S) Etheridge (S)

Library Valuation Calculator - Input

Library Valuation Calculator - Output

Known Information Recurrent costs of operations (Source: Statistical Bulletin) Population (Source: Statistical Bulletin & ABS) Membership (Source: Statistical Bulletin) Visits (Source: Statistical Bulletin) Calculated economic multipliers (Source: SGS Econometric Model) Derived from Case Studies Library user willingness to pay for the service Library non-user willingness to pay for the service Financial savings to library users Time spent at the library & travelling to the Library Cost of travelling to the library Triggered purchases (for economic impact modelling) Case Study to Non-case Study Valuation Process

Questions