Are public libraries worth their price?

Abstract

PurposeThe paper reports from a valuation study of the Norwegian public libraries, aiming to provide a better understanding of their total value, both use and non‐use value, as viewed by the population. An objective was to explore whether or not the citizens found that their benefits outweighed the costs to provide them.Design/methodology/approachThe study applies the contingent valuation method, developed in economics to valuate non‐market goods. Contingent valuation is based on representative questionnaire surveys and has been used to valuate several cultural goods, including a few library valuation studies.FindingsThe empirical data based on a representative population sample demonstrates that the value of the Norwegian public libraries decidedly outweigh their costs. Elicitation of the population's awareness of property rights to their local library showed that an overwhelming majority of the population (94 per cent) perceive they have such rights. The valuation result indicates that the benefits from the public libraries are four times their costs.Research limitations/implicationsThe method is based on hypothetical markets. More contingent valuation studies of libraries are necessary to refine the measure instruments. The study explores the benefit‐cost relation at the national level. Further research is needed for studying the benefit‐cost relation at the municipal level.Practical implicationsThe findings can be used as one way of documenting the value of public libraries to politicians, local authorities and the general public.Originality/valueThis appears to be the first contingent valuation study of public libraries at a national level, in Norway and internationally.