A framework for foundational and transitional value assessment of non-market benefits of a smart government system

Smart cities prioritize citizen participation by integrating Information and Communications Technology to develop human-centric solutions. Smart government systems facilitate inter-departmental data sharing, and foster transparency, collaboration and access to open data. These systems synthesize multiple administrative services into unified one-stop portals, streamlining access and enhancing service delivery. A framework is introduced to evaluate the non-market benefits of smart government systems, categorizing them into Foundational Benefits (derived from existing departmental portals) and Transitional Benefits (representing the added value of transitioning to a unified platform). To quantify these benefits, the study employs Contingent Valuation methods alongside econometric modelling techniques, including interval regression and Tobit analysis, using Willingness-to-Pay (WTP) as a proxy measure of perceived value. Based on a survey with over 1,000 respondents in Hong Kong, the WTP estimates are extrapolated to simulate the local internet population. The benefits are aggregated to inform a Cost–Benefit Analysis. The study further emphasizes continuous improvement needs in smart government, particularly by addressing factors found to be influencing intangible benefits, including usability, social norms, open data sharing and digital divide. These findings demonstrate that smart government systems generate measurable non-market welfare gains and provide an empirical foundation for evidence-based digital policy evaluation.