2

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

4

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

15

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

Thanks for

attention!