Double-bounded Dichotomous Choice CVM for Public Library Services in Japan

Under the recent severe financial situation, it is more important that central and local governments justify their public investments than ever. Cost-benefit analysis (CBA) is often used for this problem. However, CBA has not been done on public library services in Japan. The aim of this study is to conduct double-bounded dichotomous choice CVM (contingent valuation method) and to validate applicability and effectiveness of this method. The result shows that respondents are willing to pay about 350 JPY per library-use on average. Moreover, household income and frequency of public library use significantly affect their willingness to pay.