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Review of the Registered Clubs Industry in NSW - Clubs NSW

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F ACG’s approach to measur<strong>in</strong>g <strong>the</strong> benefits <strong>the</strong><br />

community derives from club-provided goods and services<br />

F ACG’s approach to measur<strong>in</strong>g <strong>the</strong> benefits <strong>the</strong><br />

community derives from club-provided goods and<br />

services<br />

As Chapter 4 discussed, <strong>Clubs</strong><strong>NSW</strong> supported us<strong>in</strong>g a ‘will<strong>in</strong>gness to pay’ approach<br />

to identify <strong>the</strong> value <strong>of</strong> clubs’ social contributions. ACG used this approach <strong>in</strong> its<br />

recent socio-economic impact study <strong>of</strong> clubs <strong>in</strong> <strong>NSW</strong>, undertaken on behalf <strong>of</strong><br />

<strong>Clubs</strong><strong>NSW</strong>, to measure <strong>the</strong> benefit communities derive from <strong>the</strong> community services<br />

that clubs deliver.<br />

Essentially, such a measure estimates <strong>the</strong> aggregation <strong>of</strong> satisfied demand above <strong>the</strong><br />

levels (prices) at which club goods are bought (ie, where consumers’ will<strong>in</strong>gness to<br />

pay for club goods exceeds <strong>the</strong> prices at which <strong>the</strong>se goods are traded <strong>in</strong> <strong>the</strong> market).<br />

In its study, ACG used a choice modell<strong>in</strong>g approach to do this, and estimated that<br />

<strong>the</strong> <strong>NSW</strong> community is will<strong>in</strong>g to pay between $59 million a year and $224 million a<br />

year (through a direct household contribution) to prevent a decl<strong>in</strong>e <strong>in</strong> club-provided<br />

community services. The follow<strong>in</strong>g sections provide more details <strong>of</strong> this<br />

methodology.<br />

F.1 ACG’s choice modell<strong>in</strong>g approach<br />

Choice modell<strong>in</strong>g is a stated preference technique that <strong>in</strong>volves elicit<strong>in</strong>g people’s<br />

preference or choices for different options <strong>in</strong> a representative sett<strong>in</strong>g to ascerta<strong>in</strong> how<br />

much <strong>the</strong>y are will<strong>in</strong>g to pay for those options. 262 ACG noted that choice modell<strong>in</strong>g<br />

does not attempt to estimate <strong>the</strong> total value <strong>of</strong> <strong>the</strong> social contribution made by<br />

registered clubs. Instead, <strong>the</strong> technique measures community members’ will<strong>in</strong>gness<br />

to pay to ma<strong>in</strong>ta<strong>in</strong> or <strong>in</strong>crease certa<strong>in</strong> community services that clubs deliver.<br />

ACG surveyed over 1000 adults (<strong>of</strong> 18 years or older) <strong>in</strong> September 2007 to achieve<br />

three outcomes:<br />

<br />

<br />

identify respondents’ perspectives and attitudes towards registered clubs<br />

understand respondents’ preferences to changes <strong>in</strong> exist<strong>in</strong>g social services<br />

provided by clubs<br />

262 Allen Consult<strong>in</strong>g Group 2007, Valu<strong>in</strong>g <strong>the</strong> Social Contribution <strong>of</strong> <strong>Registered</strong> <strong>Clubs</strong> to <strong>the</strong> <strong>NSW</strong> Community,<br />

F<strong>in</strong>al Report to <strong>Clubs</strong><strong>NSW</strong>, Sydney, p viii.<br />

<strong>Review</strong> <strong>of</strong> <strong>the</strong> <strong>Registered</strong> <strong>Clubs</strong> <strong>Industry</strong> <strong>in</strong> <strong>NSW</strong> IPART 247

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