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 Educational role Reading and literacy Economic impact (Linley and Usherwood, 1998)

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)

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)

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.

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

Previous Library CV Studies 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

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

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 %

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

Tick Off at Each Line NOK/House- hold per Year Definitely FOR Probably FOR Not sure Probably AGAINST Definitely AGAINST

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)

Which one of these statements best expresses your answer? 1) I support maintaining the local public library services and am willing to pay ….. NOK in local tax increase 36 % 2) I support maintaining the local public library services and am willing to pay an additional local tax, but it is worth less than ….. NOK to me 10 % 3) I support maintaining the local public library services but disagree that it demands additional local taxes 39 % 4) I don’t support maintaining the local public library services even if it doesn’t cost me anything 3 % 5) Don’t know/Will not answer9 %

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 1) - within their budget 2) - without having to reduce services in the health and education sectors. 3) - I cannot afford to pay anything.

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.

Which one of these statements best expresses your answer? I support maintaining the local public library services if the alternative is to close down the library 1) and transfer ….. NOK in saved budget funds to other municipality tasks that will benefit my household. 39 % 2) independent of the amount of saved budget funds that then can be transferred to other municipality tasks that will benefit my and other households. 51 % 3) I support closing down the local library if it involves that ….. NOK is transferred to other municipality tasks that will benefit my household. 3 %

The Value of Norwegian PublicLibraries per Household A range | | | | | NOK Cost-benefit ratio, appr. 1:4

Library Studies Applying Contingent Valuation Cost-Benefit Ratio St.Louis PL, US, 19991:4 University Library, Virginia, 1999: Ref.desk 1:3.5 National Library, NZ, 2002: B ibl.db&UnionCat. 1:3.5 British Library, :4.4 Florida Public Libraries, :6.6 3 Univ.Libraries, South Carolina, :4.5

Motivations for Valuing Public Libraries Self-interest - Direct use value40 % - Option value20 % Social interest - Other persons’ library use17 % - Cultural and social value 19 %