Guest blog post by Jane Callen, Economics and Statistics Administration
The U.S. Commerce Department’s National Oceanic and Atmospheric Administration (NOAA) collects weather and climate data. As we noted in a recent Commerce Department report on the Value of Government Data, the return to society on investment in government meteorological data is large.
For example, one survey found that the overwhelming majority of people said they used weather forecasts and did so an average of 3.8 times per day. That equates to 301 billion forecasts consumed per year!
The study’s authors note that, other than current news events, there is probably no other type of information obtained on such a routine basis from such a variety of sources. Certainly, the researchers say, no other scientific information is accessed so frequently. And while the information is being delivered from an array of sources, most of it directly or indirectly originates from NOAA’s National Weather Service (NWS). Americans check to learn what is happening in the weather, and we plan our days – and lives – based on this data.
The researchers found a median valuation of weather forecasts per household of $286 per year, which suggests that the aggregate annual valuation of weather forecasts was about $31.5 billion. The sum of all federal spending on meteorological operations and research was $3.4 billion in the same year, and the private sector spent an additional $1.7 billion on weather forecasting, for a total of private and public spending of about $5.1 billion. In other words, the valuation people placed on the weather forecasts they consumed was 6.2 times as high as the total expenditure on producing forecasts. NOAA data is re-packaged and analyzed to produce 15 million weather products, such as air quality alerts, the three, five and ten day extended weather forecast, earthquake reports, and tornado and flash flood warnings. Many end users do not realize that NOAA provides the data they see and hear every day on The Weather Channel, AccuWeather, the radio and in the morning paper.