Social and Economic Benefit Studies in WMO region RA VI

1. Social and Economic Benefit Studiesin WMO region RA VI Adriaan Perrels Vice-chair WG SDP / chair TT-SEB2 Zagreb, Croatia, SEB course – 29.6 – 3.7 2015

2. Contents • RA VI – reported interest in SEB • Conducted SEBs in RA VI • Case study examples • Exploitation and communication • Conclusions

3. WMO survey on SEB in RA VI (2011) • 25 NMSs responded (out of 50)

4. Reported reasons for interest in SEB • Justifying public funding 68% • Investment / R&D prioritization 44% • Service development (incl. charging structures) 56% • Many respondents indicated that support was welcome (from the WMO), notably regarding: • Guidance (’how to define / conduct / etc.’) • SEB methods • Experience & information sharing • Funding book TT-SEB / COST

5. SEB studies in RA VI area (not exhaustive) • UK MetOffice (2007; 2013; 2015) • Russia (2001; NOAA 2006) • Denmark (DMI) (Transport Ministry 2006) • Finland (FMI) (VTT 2007/2008; FMI 2011/2012) • South-East Europe & former CIS (World Bank 2008) • Croatia (HMZ) (VTT/FMI 2008) • MeteoSwiss (INFRAS 2008) • Spain (AEMET) (datos.gob.es 2014)

6. Examples of SEB studies • MeteoSwiss (Frei 2010; Frei et al 2011) • Broad scope, but with emphasis on transport • Benefit transfer by sector and by approach • All weather service providers in Switzerland • FMI (Nurmi et al 2012; Nurmi et al 2013) • Focus on transport • Deep analysis of the value chain • Also tries to account for user cost • UK MetOffice (2013) • (2013) Benefits of high performance computing • Avoided hazard cost; optimal wind power siting

7. Characterizing case studies test footer

8. Examples of SEB studies – in depth • Switzerland, Finland • Road: maintenance, clearance– cost savings better traffic flow – time savings avoided accidents – avoided cost Challenge is to show the differential effect of a new or improved weather service (as compared to current practice)

9. Tracing information effects Swiss road case (Frei et al 2014) Finnish road case (Nurmi et al 2013) test footer

10. Examples of SEB studies – in depth UK MetOffice: Benefits of high performance computing: • Higher accuracy / resolution enables further hazard cost reduction through • Emergency services (better anticipation; deployment) • Better located and sized protection  less damage to private and public property • Higher accuracy / resolution enables: • Optimized siting of wind turbines • Benefits are conditional on quality of complimentary models and services

11. The benefits of showing the benefits • Analysis of the value chain not only gives an idea of the current net benefits, but can also show what can be improved in each stage of the value chain • Supports the development of understanding the customer, customer relations, and partnerships • Citizens • Public agencies • Specific sectors (agriculture, transport, energy) • Neighboring NMS’s • … facilitated by good communication

12. Conclusions • Experience with SEB is building up, but by no means common knowledge in RA VI • SEB is not only numerical results, but also a learning process and management tool • SEB comes in many sizes  purpose should drive the ambition level and allocated resources • Re-/deregulation as new motivator • Enhanced sharing of information and experience seems very useful • Value chain as a key concept test footer

13. References • Anderson et al (2015), Valuing Weather and Climate: Economic Assessment of Meteorological and Hydrological Services – case studies 1, 6 and 7 • Datos.gob.es (2014), Estudio Sector Infomediario 2014. Parte III. Análisis Coste – Beneficio de la información meteorológica http://datos.gob.es/content/estudios-de-caracterizacion-del-sector-infomediario-2014 • Frei, Th., von Grünigen, S. and Willemse, S. (2012), Economic benefit of meteorology in the Swiss road transportation sector, Meteorological Applications • Frei Th. (2010), Economic and social benefits of meteorology and climatology in Switzerland, Meteorological Applications, Vol.17, pp. 39–44. • Leviäkangas, P., (2009), Benefits and value of meteorological information services – the case of the Finnish Meteorological Institute, Meteorological Applications, Vol.16, pp.369–379 • Leviäkangas,P., Hautala, R., Räsänen, J., Öörni, R., Sonninen, S., Hekkanen, M., Ohlström, M., Venäläinen, A., and Saku, S. (2007), Benefits of meteorological services in Croatia, VTT Research Notes 2420, Oulu • Met Office UK (2007), The Public Weather Service’s contribution to the UK economy, www.metoffice.gov.uk/media/pdf/h/o/PWSCG_benefits_report.pdf • Nurmi, P., Perrels, A., Nurmi, V. (2013), Expected impacts and value of improvements in weather forecasting on the road transport sector, Meteorological Applications, Vol.20, pp.217 – 223 • Nurmi,V, Perrels, A., Nurmi, P., Seitz, D., Michaelides, S., Athanasatos, S., and Papadakis, M. (2012), Economic value of weather forecasts on transportation – Impacts of weather forecast quality developments to the economic effects of severe weather, EWENT report D5.2 http://ewent.vtt.fi/Deliverables/D5/D5_2_16_02_2012_revised_final.pdf

14. Thank you for your attention • Had this information a differential effect? • adriaan.perrels@fmi.fi