The Value of Public Libraries in Victoria
The value of public libraries has been assessed using cost benefit analysis, the preferred tool of Australian governments for assessing whether a proposed investment is worthwhile.
The benefits generated by public libraries encompass the direct and indirect benefits derived by users, as well as the benefits derived by the wider community, i.e. non-users.
To estimate these benefits significant primary research was conducted in SGS Economics & Planning (2011). This included a survey of 1,380 users of Victorian public libraries, as well as a survey of 1,050 Victorian non-user households. These surveys established the willingness of users and non-users to pay for public library services.
In the results presented on this website, these willingness to pay parameters have been:
The costs of public library services include recurrent operating and recurrent capital costs required to deliver library services. Capital works costs sunk in previous years are excluded.
Library visitation statistics and the costs of public library services have been sourced from the PLVN (2017).
The economic impact assessment traces how public library service expenditures trigger other transactions in the local economy and accumulate through multiple rounds of buyer/ supplier transactions. As a result of these transactions, local employment is supported, and local economic value added is generated.
Public libraries trigger transactions via:
A computable general equilibrium model was used to assess the total economic impacts generated by Victorian public libraries. The results have been expressed in terms of:
SGS Economics & Planning (2011) Dollars, Sense and Public Libraries - The landmark study of the socio-economic value of Victorian Public Libraries, Technical Report.
Public Libraries Victoria Network (2017) PLVN Annual Statistical Survey 2016-17.
Public Library Service Profile
Net Community Benefits Per Annum
30,817,000
6,069,000
5
$254,937,000
1,800
Net Community Benefits
4.3
$847,429,000
$140
$45
Economic Impacts
2,300
$330