This has been a shocking discovery for me too. The library near us recently said it's cheaper for them to buy a book then an ebook.

It's absolutely insane.

It's significantly cheaper! A physical book can be loaned endlessly, as long as the binding holds up, and even if it gets damaged, it can be repaired. The contracts for ebooks at libraries often limit it to X number of circulations before the library has to pay again (this is how Overdrive/Libby works), or they have to pay per circulation (Hoopla). It's ludicrous.