The Economics of Weather
The Value of Weather Forecasts
How better weather forecasts save money and lives, why forecasting is a public good, and how IMD and private weather firms provide forecasts in India.
Forecasts are valuable information.
Benefits
- Farmers time sowing, spraying and harvesting.
- Airlines, shipping and power grids plan ahead.
- People prepare for storms.
Public good
Weather forecasts are a public good: one person’s use doesn’t reduce another’s, and it’s hard to exclude people.
IMD
The India Meteorological Department, founded in 1875, provides official forecasts.
Private firms
Firms like Skymet (founded 2003) sell tailored forecasts.
Investment
India invests in supercomputers and Doppler radars to improve forecasts; Mission Mausam (2024) aims to upgrade them.
Accuracy
Forecasts have become much more accurate over decades.
A farmer delays pesticide spraying after an SMS forecast warns of rain, saving money.
They guide costly decisions.
- Forecasts guide farming, transport and power.
- Weather forecasts are a public good.
- IMD was founded in 1875.
- Mission Mausam aims to upgrade forecasting.
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