| Practice area: | Behavioural Economics | Public Policy |
|---|---|
| Client: | N/A |
| Published: | 05 September, 2024 |
| Keywords: | choice experiment contingent valuation consumer Willingness to pay |
London Economics were commissioned by the Met Office to estimate the value that the UK public places on the Met Office’s Public Weather Service. The value was estimated through conducting a survey of the UK general population. The overall value is explored, as well as the value of different aspects of weather forecasts.
The study found that, on average, individuals are willing to pay between £19.67 and £22.99 per year (with a central estimate of £21.33 per year) for the Met Office PWS. Based on this, the total annual value of the Met Office PWS to the UK public in 2024 is estimated to be between £1.10 billion and £1.28 billion.
The results of a choice experiment reveal that, on average, respondents would be willing to pay £0.35 for a 1-percentage point improvement in rainfall forecast accuracy, £0.33 for a 1-day increase in the number of days ahead a forecast is available, and £0.32 for an hourly improvement in the interval at which a forecast is available. On average, respondents would also be willing to pay £3.82 for a pollen forecast to be provided.
This study informed our wider economic evaluation of the UK Met Office, available here.
The full report is available here.