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Estimating Use and Non-use Values of a Music Festival

Journal article
Authors Tommy D. Andersson
John Armbrecht
Erik Lundberg
Published in Scandinavian Journal of Hospitality and Tourism
Volume 12
Issue 3
Pages 215-231
ISSN 1502-2250
Publication year 2012
Published at Department of Business Administration
Centre for Business in Society
Centre for Tourism
Department of Business Administration, Marketing Group
Pages 215-231
Language en
Keywords cost-benefit analysis, externalities, festivals, events, Sweden
Subject categories Business Administration


Impacts of a music festival may appear in many forms and research in the area of impact assessments is at present developing wider perspectives than being limited to economic impact assessments. Concepts like social, cultural and environmental impacts are now appropriate and traditional cost–benefit analysis is regaining momentum. The purpose of this study was first, to discuss how the value of a festival can be assessed and understood within a cost–benefit framework. Second, it was to evaluate a Scandinavian music festival in terms of Use and Non-use values by the contingent valuation method. The results illustrate the implications of a wider perspective regarding the impacts of a festival. Use value, representing the core experience, is the largest value (€7.4 million) but Non-use value is also important (€3 million). The latter includes the perceived value of externalities such as socio-cultural and environmental impacts which are highly relevant from a sustainability perspective. One conclusion is that Use and Non-use values within a cost–benefit framework can help managers and researchers understand value creation of festivals better.

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