Economic Valuation of Public Meteorological Information Services—A Case Study of Agricultural Producers in Taiwan

Abstract

Most meteorological information services in Taiwan are currently provided by the Central Weather Bureau, Ministry of Transportation and Communications. As agricultural production activities are sensitive to weather and climate conditions, meteorological information services are more important for agricultural decision-makers than those in other sectors. This study uses the contingent valuation method to estimate the economic value of meteorological information services in Taiwan for agricultural producers. We assess the agricultural producers’ willingness to pay (WTP) for the meteorological information services, conducting a national face-to-face survey of 400 registered farmers in 20 municipalities in Taiwan in 2013. The results show the adjusted WTP for every agricultural household each year with a 95% confidence interval which ranges from 56.06 US dollars to 90.92 US dollars. The inferred annual economic value of meteorological information services for agricultural producers in Taiwan is between 28.06 million US dollars and 45.51 million US dollars. Moreover, the agricultural producers’ subjective assessment of weather forecast accuracy, farm size, and first bid price significantly affect the amount agricultural producers are willing to pay for meteorological information services.