Is there space for more art in Malmö? A Cost Benefit Analysis for a museum relocation

Abstract: This thesis presents a Cost Benefit Analysis of a potential relocation of Malmö Konstmuseum. The main purpose of this research is to inform decision makers and assist the political discussion around this subject. In this study, the net social benefits are estimated for both the new and current locations. On the benefit side, use value, non-use value and museum revenues are accounted for, while on the cost side, construction and operational costs are evaluated. The estimations of use and non-use values are based on previous academic research on the valuation of museums through Contingent Valuation and Travel Cost methods. The remaining estimations of costs and benefits are informed by the current data available for Swedish museums and recent museum creations and expansions. Based on this analysis, we recommend that from an economic standpoint the museum should remain in its current location. The results show that free admission maximizes the economic value of the art museum.