Subsidising Stan: Measuring the social benefits of cultural spending Jeff Dayton-Johnson Dalhousie University, Department of Economics, Halifax, Nova Scotia B3H 3J5 ,
[email protected] (e), 902.494.2026 (t); 902.494.6917 (f) Emily King Strategic Research and Analysis, Department of Canadian Heritage November 2003 Abstract We use social cost-benefit analysis to estimate the net social benefit of the 2002 Stan Rogers Folk Festival in rural Nova Scotia. We analyse festival-goer survey data using a variant of the travel-cost method to quantify festival-generated consumer surplus, yielding an estimate of just over $300,000. In addition, we consider non-use values and sociability benefits (related to the musical content, to the conviviality of festival- goers’ experience, and to economies of scope in collective action) of the festival. While we cannot provide estimates of most of these non-use and sociability values (except to argue that they are nonnegative), our baseline estimate of the festival’s net social benefit nevertheless substantially exceeds the subsidy it receives. keywords: festivals, cultural goods, intangibles, cost-benefit analysis JEL classification codes: B49, D61, D62, H43, R58, Z10 Subsidising Stan: Measuring the social benefits of cultural spending∗ 1 Introduction The Stan Rogers Folk Festival (“StanFest”) takes place in Canso, Nova Scotia, each year during the first weekend in July. Festival organizers have repeatedly, and often successfully, solicited funding from various levels of government. This support might imply that music festivals, and indeed this particular festival, benefit the lives of Canadians (or merely that a regional politician is able to “deliver the goods”).