Cost-benefit Analysis Of Electronic Resources And Library Policy Choices

Electronic collection is one of the most efficient approaches to access materials and has become more and more popular. However, under the increasingly complex media environment, library managers feel more and more difficult in decision making as regards resources selection, acquisition, access and service policies. They need to decide whether or not: (1) to rely exclusively on electronic journals or purchase both electronic and print subscriptions; (2) to discard print issues or rely on them as a backup for archives purposes; (3) to value electronic collections and services, and so on. These complex decisions require a sound economic underpinning as well as good judgment in applying economic measures. Cost-benefit analysis (CBA) is an economist's tool for evaluating public investment, which seeks to identify both tangible and intangible benefits and compare these to the costs. CBA has become one of the most important economic measures to help library managers make correct policy decisions in foreign countries. Unfortunately, up to now, the studies on CBA in China's libraries have just started.This dissertation aims to shed light on the effectiveness of electronic resources and their services in Chinese university libraries and to help obtain the first hand facts and data for Chinese university libraries in making policy decision as regards collections development and administration. In this article there are four chapters. In the first chapter, the study background, CBA history, literature review, purpose and value of the study and study methodology are briefly described. In the second chapter, the theory framework of cost-benefit analysis is designed to serve the perspectives of the cost and benefit derived from the electronic and print collections and their services. The framework is described in well-established economic terms such as input, output, performance, effectiveness, usage, cost-benefit, and so on. In the third chapter, examples of these measures are given for comparison in library electronic and print collections as well as services based on recent data studied at Jimei University, Xiamen University and some other Chinese universities. The author compares the library electronic collection with the traditional print collection in the case study as well as the collection services related to these two media. The comparison can involve any of the measures previously discussed such as input cost of the two collections, output and unit costs of the two collections, performance of collection services, amount of articles read, and reader time spent. In such comparisons, unit costs of the collections and services and time spent by readers are estimated and the benefits are determined. Some indications of the benefits and costs of electronic collections over print collections are shown in tables. In the final chapter, conclusion and suggestions are made. The conclusion shows that the electronic collection and services have yielded benefits because of lower price per-title, lower cost per use, less working time, substantial savings in space, better services to users, and so on. In short they are highly beneficial to libraries, readers and universities. Therefore it is proposed that new concepts and measures about resources development and library administration should be taken in Chinese university libraries under new electronic environment.