Hostname: page-component-586b7cd67f-dlnhk Total loading time: 0 Render date: 2024-11-24T11:43:11.688Z Has data issue: false hasContentIssue false
  • English
  • Français

Using willingness-to-pay to assess the economic value of weather forecasts for multiple commercial sectors

Published online by Cambridge University Press:  07 March 2003

Kimberly S. Rollins  and
Joseph Shaykewich
Kimberly S. Rollins
Affiliation:
Department of Applied Economics and Statistics, Mail Stop 204, University of Nevada, Reno NV 89557, USA Email: [email protected]
Joseph Shaykewich
Affiliation:
Meteorological Services of Canada, Downsview, Ontario
Get access

Abstract

This paper uses an alternative to the usual cost-avoidance approach to estimating the value of weather forecast products. Value is estimated via a demand-based approach based on the willingness to pay of those who use weather forecast services. Contingent valuation is used to estimate the benefits generated by an automated telephone-answering device that provides weather forecast information to commercial users in the Toronto area of Ontario, Canada. Commercial sectors included in the study are construction, landscaping/snow-removal businesses, TV and film, recreation and sports, agriculture, hotel and catering, and institutions such as schools and hospitals. Average value per call varied by commercial sector, from $2.17 for agricultural users to $0.60 per call for institutional users, with an overall mean of $1.20 per call. At roughly 13,750,000 commercial calls annually, this would result in an estimate of benefits generated by the service to commercial users of $16,500,000 per year.

Type
Research Article
Information
Meteorological Applications , Volume 10 , Issue 1 , March 2003 , pp. 31 - 38
Copyright
© 2003 Royal Meteorological Society

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)