The Value & Economic Measures of Libraries - Economic Perspective
Economic value of public libraries in Latvia
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Economic value
of public libraries in Latvia
Kristine Paberza Impact Assessment Manager
Public library development project «Father’s Third Son»
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Public libraries in Latvia
18 min
13 min
24 min
16 min
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Public library users % of all inhabitants
38%
61%
34% 38%
26%
38% 44%
17%
40% 48%
9%
Active users Passive users Non-users
Autumn 2007 Spring 2009
Autumn 2009 Spring 2011
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Library internet users % of all inhabitants
13%
28%
30%
61%
69%
73%
2007
2009
2011
Internet users Library internet users
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Frequency of library internet use % of all library internet users
7%
15%
13%
30%
28%
38%
30%
11%
21%
7%
2007
2011
Every or almost every day Several times a week
At least once a week At least once a month
More rarely
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Personal benefits % of all library internet users
38%
43%
47%
47%
54%
59%
62%
65%
69%
79%
To find a job
To improve existing job
To do shopping
To engage in social life
To help children in school
To save or earn money
To find info for studies
To find health info
To find community info
To find info for hobbies
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Local community benefits % of all library internet users
46% 53%
58% 64%
56%
72% 68%
76% 81%
71% 74% 74% 80% 81% 82%
Access tolabour market
Possibility tosave time and
money
Better socialcommunication
Access toinformation
Access toprivate e-services
2007 2009 2011
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Why do we need to quantify economic
value?
21 324 319
16 784 003
13 801 600
7 919 156 9 326 347 9 943 745
2008 2009 2010
Annual budget, LVL Number of visits
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Cost – benefit calculations
Economic impact
Data source General approach to calculation
Direct benefits
Survey / national statistics
Value of service assigned by users multiplied by the utilisation of this service
Indirect benefits
Survey / findings from similar studies
Qualitative research for non-monetary indirect benefits. Use of ratios of indirect monetary benefits from other studies
Direct costs Survey / national statistics
Expenses on salaries multiplied by time proportion librarians spend on delivering particular service plus overheads
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Data sources and samples
1. Public libraries’ national statistics
2. Survey data
Target audience Sample
Latvian inhabitants (including
library users and non-users)
3004
Public library managers 596
Public library librarians 1246
Municipality leaders 91
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Valuation of public library
services
Congingent valuation method:
Willingness to pay (WTP)
Willingness to accept (WTA)
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Services analysed in the study
Public library services in general
Lending
Reading room
Use of PCs and Internet
ICT training classes
ICT consultations
Services for disabled users
Public events
Exhibitions
Reference services
Printing, scanning, copying
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Direct net annual benefit of
public library system in Latvia
6 470 030 LVL (cost-benefit ratio = 1,37)
31 715 833 LTL / 11 410 988 USD
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Annual indirect benefits to
the economy
9 890 423 LVL (cost-benefit ratio = 1,96)
48 482 466 LTL / 17 443 427 USD
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Alternative net annual benefits
WTP (including 0)
WTP (excluding 0)
WTA (including 0)
1,37 3,88 9,96
WTP (including 0)
WTP (excluding 0)
WTA (including 0)
6 470 030 49 783 136 155 104 683
Alternative cost-benefit ratios
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Cost-benefit ratios of services WTP (including 0)
0,12
0,27
0,33
0,39
0,42
0,49
0,79
0,88
1,42
1,45
3,04
5,77
Services for disabled users
Scanning
Reference services
ICT consultations
Public events
ICT training classes
Printing
Photocopying
Lending
Reading room
Use of PCs and Internet
Exhibitions
1,37
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Change in the net benefits WTP (including 0)
2 493 890
7 266 133
9 650 067
2008 2009 2010
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What’s next?
900 000 LVL 2 595 250 LVL
1 709 657 LVL 13 800 LVL
Internet connectivity subsidy
Summer reading program
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Thanks for
attention!