Data Users

Economic Benefits (Research on the economic benefits of / cost mitigation by NOAA data & products related to Energy)

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1. The potential benefits of improved GOES-R data will result in "enhanced forecasts leading to more efficient irrigation of crops - resulting in water savings, energy savings by not having to pump water, and revenue gains from selling excess water" valued at: $61 million in 2015 and $1.09 billion from 2015-2027 (Centrec, 2007).
2. U.S. electricity generators save $166 million annually using 24-hour temperature forecasts to improve the mix of generating units that are available to meet electricity demand (Teisberg et al., 2005).
3. Incremental benefits are relevant in assessing the merits of investments that will improve forecast accuracy. The incremental benefit of an improvement in forecast accuracy is estimated to be about $1.4 million per percentage point of improvement per year. For a 1°centigrade improvement in forecast accuracy, the benefit is about $59 million per year (Teisberg et al., 2005).
4. The potential benefits of improved GOES-R data will result in "more accurate temperature forecasts contributing to improved energy demand expectations and savings in the electricity and natural gas sectors" valued at: $512 million in 2015 and $2.56 billion from 2015-2027 (Centrec, 2007).
5. An improved NOAA satellite imager and sounder will improve maximum and minimum temperature predictions and create $504 million/year in economic benefits, as derived from load forecasting efficiency for electric utility providers in the US, from electric, gas, and sanitary services (NOAA, 2002).
6. For every $1 that energy companies spend in acquiring NOAA climate station data, they receive a potential benefit savings of $495 in related costs (i.e. not having to implement their own observing system to collect the data). This yields a cumulative $65 million benefit when extrapolated across the entire US energy market (Centrec, 2003).
7. Research using NOAA's Air-Freezing Index (AFI) provides building design and construction guidance to reduce construction costs by $330 million/year. The use of this AFI has saved an equivalent of 8.6 million gallons of home heating fuel, through increased home energy efficiency. A detailed cost analysis was compiled for homes built for the 1992-93 winter season, showing a cost savings in using the new AFI guidance in constructing frost-protected shallow foundations vs. conventional practices, ranging from 1.1 to 3.8% of the total home sale price [ view associated image ] (NOAA, 2001 and NAHB Research Center, 1994).
8. The 1997-98 El Niño generated national savings from reduced heating costs. This savings was estimated at $6.7 billion (Changnon, 1999a).
9. An enhanced NOAA satellite imager and sounder will improve marine forecasts of winds and waves, creating an economic benefit of $95 million/year for commercial shipping, from transit time savings and cargo loss reductions (NOAA, 2004)
10. The economic benefits of improvements in short-term ice formation and fog condition forecasts (e.g. more than 2 hours notice) exceeds $29 million/year derived from rerouting efficiencies in the trucking industry (Adams et al., 2004)
11. Improved forecasting of snow events and temperature predictions created potential economic benefits over $500 million/year for natural gas and electric utility providers (Adams et al., 2004)
12. Improved forecasting of snow events enhances long-range stream flow forecasts, creating over $170 million/year in hydropower economic benefits for three river systems (Adams et al., 2004)
13. An improved long-range weather forecasts of the El Niño-Southern Oscillation (ENSO) and the Pacific Decadal Oscillation (PDO) will create $161 million/year in economic benefits, as derived from more efficient reservoir operations and hydropower sales on spot markets for electric, gas, and sanitary services (Hamlet et al., 2002)
14. NOAA's Advanced Hydrologic Prediction Service (AHPS) provides economic benefits of $240 million/year, in mitigating flood losses and an additional $520 million/year in benefits for water resource users including: hydropower, irrigation, navigation, and water supply (National Hydrologic Warning Council, 2002).
15. After examining 24 years of state level super-sector economic data and historical weather observations to form a panel combining weather information with economic data, estimates indicate that US economic output could vary annually by about 3.4% due to weather variability or about $260 billion/year (in 2000 dollars) (Larsen et al., 2007).