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Economic value
    of public libraries in Latvia

      Kristine Paberza
      Impact Assessment Manager
      Public library development project «Father’s Third Son»




2
Public libraries in Latvia
                                 18 min



                                 13 min



                                 24 min



3                                16 min
Public library users
                              % of all inhabitants

                Autumn 2007   Spring 2009
                Autumn 2009   Spring 2011

                                      61%
                          44%48%
38%   38%40%           38%
   34%
                                            26%
                                               17%
                                                     9%


 Active users        Passive users          Non-users
                                                          4
Library internet users
    % of all inhabitants
           Internet users     Library internet users

                                                        73%
    2011
                            30%

                                                       69%
    2009
                            28%

                                                61%
    2007
                 13%

5
Frequency of library internet use
    % of all library internet users
           Every or almost every day   Several times a week
           At least once a week        At least once a month
           More rarely



    2011    15%          30%                 38%           11% 7%




    2007   7% 13%           28%              30%               21%


6
Personal benefits
     % of all library internet users
      To find info for hobbies                        79%
      To find community info                       69%
           To find health info                  65%
       To find info for studies                62%
      To save or earn money                    59%
    To help children in school               54%
       To engage in social life          47%
              To do shopping             47%
      To improve existing job           43%
                 To find a job         38%
7
Local community benefits
     % of all library internet users
                              2007      2009      2011
                                        80%              81%81%          82%
                                     76%
        72%74%            74%                                        71%
                       68%
                                                   64%
                                  58%                             56%
                   53%
    46%




       Access to   Possibility to Better social      Access to     Access to
    labour market save time and communication      information     private e-
                     money                                          services
8
Why do we need to quantify economic
    value?
                  Annual budget, LVL     Number of visits

     21 324 319

                           16 784 003
                                                13 801 600

                                   9 326 347           9 943 745
            7 919 156




           2008                  2009                 2010
9
Cost – benefit calculations
Economic     Data source General approach to calculation
impact
Direct       Survey /       Value of service assigned by users
benefits     national       multiplied by the utilisation of this
             statistics     service

Indirect     Survey /       Qualitative research for non-
benefits     findings       monetary indirect benefits.
             from similar   Use of ratios of indirect monetary
             studies        benefits from other studies
Direct costs Survey /       Expenses on salaries multiplied by
             national       time proportion librarians spend on
             statistics     delivering particular service plus
                            overheads                          10
Data sources and samples
1. Public libraries’ national statistics
2. Survey data

Target audience                      Sample
Latvian inhabitants (including       3004
library users and non-users)
Public library managers              596
Public library librarians            1246
Municipality leaders                 91
                                              11
Valuation of public library
                       services
Congingent valuation method:
 Willingness to pay (WTP)
 Willingness to accept (WTA)




                                12
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          13
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




                                     14
Annual indirect benefits to
the economy

9 890 423 LVL (cost-benefit ratio = 1,96)
48 482 466 LTL / 17 443 427 USD




                                      15
Alternative net annual benefits
     WTP             WTP             WTA
 (including 0)   (excluding 0)   (including 0)
  6 470 030      49 783 136      155 104 683


Alternative cost-benefit ratios
     WTP             WTP             WTA
 (including 0)   (excluding 0)   (including 0)
     1,37            3,88            9,96
                                            16
Cost-benefit ratios of services
                                     WTP (including 0)
                Exhibitions                     5,77
   Use of PCs and Internet               3,04
             Reading room         1,45
                   Lending        1,42
             Photocopying       0,88
                   Printing     0,79             1,37
       ICT training classes    0,49
              Public events    0,42
          ICT consultations    0,39
        Reference services    0,33
                  Scanning    0,27
Services for disabled users   0,12
                                                        17
Change in the net benefits
WTP (including 0)
                                9 650 067
                    7 266 133


    2 493 890


      2008            2009        2010




                                         18
What’s next?
Internet connectivity subsidy

900 000 LVL                 2 595 250 LVL



Summer reading program

13 800 LVL                  1 709 657 LVL

                                      19
Thanks
    for
attention!

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Economic value of public libraries in Latvia

  • 1.
  • 2. Economic value of public libraries in Latvia Kristine Paberza Impact Assessment Manager Public library development project «Father’s Third Son» 2
  • 3. Public libraries in Latvia 18 min 13 min 24 min 3 16 min
  • 4. Public library users % of all inhabitants Autumn 2007 Spring 2009 Autumn 2009 Spring 2011 61% 44%48% 38% 38%40% 38% 34% 26% 17% 9% Active users Passive users Non-users 4
  • 5. Library internet users % of all inhabitants Internet users Library internet users 73% 2011 30% 69% 2009 28% 61% 2007 13% 5
  • 6. Frequency of library internet use % of all library internet users Every or almost every day Several times a week At least once a week At least once a month More rarely 2011 15% 30% 38% 11% 7% 2007 7% 13% 28% 30% 21% 6
  • 7. Personal benefits % of all library internet users To find info for hobbies 79% To find community info 69% To find health info 65% To find info for studies 62% To save or earn money 59% To help children in school 54% To engage in social life 47% To do shopping 47% To improve existing job 43% To find a job 38% 7
  • 8. Local community benefits % of all library internet users 2007 2009 2011 80% 81%81% 82% 76% 72%74% 74% 71% 68% 64% 58% 56% 53% 46% Access to Possibility to Better social Access to Access to labour market save time and communication information private e- money services 8
  • 9. Why do we need to quantify economic value? Annual budget, LVL Number of visits 21 324 319 16 784 003 13 801 600 9 326 347 9 943 745 7 919 156 2008 2009 2010 9
  • 10. Cost – benefit calculations Economic Data source General approach to calculation impact Direct Survey / Value of service assigned by users benefits national multiplied by the utilisation of this statistics service Indirect Survey / Qualitative research for non- benefits findings monetary indirect benefits. from similar Use of ratios of indirect monetary studies benefits from other studies Direct costs Survey / Expenses on salaries multiplied by national time proportion librarians spend on statistics delivering particular service plus overheads 10
  • 11. Data sources and samples 1. Public libraries’ national statistics 2. Survey data Target audience Sample Latvian inhabitants (including 3004 library users and non-users) Public library managers 596 Public library librarians 1246 Municipality leaders 91 11
  • 12. Valuation of public library services Congingent valuation method:  Willingness to pay (WTP)  Willingness to accept (WTA) 12
  • 13. 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 13
  • 14. 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 14
  • 15. Annual indirect benefits to the economy 9 890 423 LVL (cost-benefit ratio = 1,96) 48 482 466 LTL / 17 443 427 USD 15
  • 16. Alternative net annual benefits WTP WTP WTA (including 0) (excluding 0) (including 0) 6 470 030 49 783 136 155 104 683 Alternative cost-benefit ratios WTP WTP WTA (including 0) (excluding 0) (including 0) 1,37 3,88 9,96 16
  • 17. Cost-benefit ratios of services WTP (including 0) Exhibitions 5,77 Use of PCs and Internet 3,04 Reading room 1,45 Lending 1,42 Photocopying 0,88 Printing 0,79 1,37 ICT training classes 0,49 Public events 0,42 ICT consultations 0,39 Reference services 0,33 Scanning 0,27 Services for disabled users 0,12 17
  • 18. Change in the net benefits WTP (including 0) 9 650 067 7 266 133 2 493 890 2008 2009 2010 18
  • 19. What’s next? Internet connectivity subsidy 900 000 LVL 2 595 250 LVL Summer reading program 13 800 LVL 1 709 657 LVL 19
  • 20. Thanks for attention!