Libraries...the fourth R
State Library of Queensland 18th Sept 2012
The Library Dividend
Library Valuation Calculator
Mark Donaldson
SGS Economics & Planning
Outline of Presentation
• Valuation Elements
• Measurement Techniques
• Case Study to Non-case Study Valuation Process
• Tour of Library Valuation Calculator
Valuation Elements
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
Do public libraries provide a
net benefit to the Queensland
community?
How much economic activity
do libraries induce in their local
economies?
CBA - Benefits
Direct use
Use
Benefits
Non-use
...access to library resources/ services
...social interaction
...sense of place and local amenity
Indirect use ...environmental savings
...contribution to literacy
...contribution to education, career & health
Option
Legacy
Existence
...for future use
...for current and future generations
CBA - Measurement Techniques
Deduced from your behaviour
Direct use
Travel cost
Financial
savings
Contingent
valuation –
users
Use
Indirect use
Benefits
Non-use
Option
Legacy
Existence
Contingent
valuation –
non-users
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
Deduced from your behaviour
Direct use
Deduced from your perceived
induced savings
Travel cost
Financial
savings
Contingent
valuation –
users
Use
Indirect use
Benefits
Non-use
Option
Legacy
Existence
Contingent
valuation –
non-users
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
Deduced from your behaviour
Direct use
Deduced from your perceived
induced savings
Travel cost
Financial
savings
Contingent
valuation –
users
Use
Indirect use
Benefits
Non-use
Option
Legacy
Existence
Deduced from the
amount you would
be willing to spend
to access the
service were it not
free
Contingent
valuation –
non-users
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?
Valuation Elements
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
Do public libraries provide a
net benefit to the Queensland
community?
How much economic activity
do libraries induce in their local
economies?
EIA - Measurement Techniques
Informed by User Survey question:
Direct Impacts
•
•
Recurrent costs of operations
Triggered user expenditures
Indirect Impacts
Total Impacts
•
•
•
Local employment
Local value added
Local output
In the past year, have you made any
purchases that were prompted by your
use of the library service?
EIA – Local Econometric Model
SGS Local Econometric Model
• Derived from the ABS Publication: 5209.0.55.001 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.
Case study library services
Case study
Segment population
Brisbane
Metropolitan
Sunshine Coast
High Growth Centre
Fraser Coast
Disadvantaged Centre
Mackay
Regional Centre, Stable Population
Goondiwindi
Small Rural Community (10-25,000)
Paroo
Declining Community (<5,000)
Mount Isa
Resource Segment
Case Study to Non-case Study Valuation Process
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 allocation
Group 1
Group 2
Group 3
Group 4
Group 5
Group 6
Group 7
Metropolitan
Regional, Stable
population
High growth
Disadvantaged 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)
Cassowary Coast (R)
Hinchinbrook (S)
Boulia (S)
Burke (S)
Moreton Bay (R)
Tablelands (R)
Cook (S)
Flinders (S)
Bulloo (S)
Central Highlands (R)
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)
Redland (C)
Lockyer Valley (R)
Townsville (C)
Murweh (S)
Quilpie (S)
Richmond (S)
Etheridge (S)
Library Valuation Calculator - Input
Library Valuation Calculator - Output
Case Study to Non-case Study Valuation Process
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)
Questions