Extreme Events

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

Filter by Region: National ------------------------ Alaska Central Great Lakes North Atlantic Pacific Islands Southeast & Caribbean Gulf of Mexico Western

1. Water stored in the form of snow is extremely important source of water supply in the United States, particularly in the Western states where it is estimated that snowmelt provides greater than 70% of the water supply. The estimated costs of storing an equivalent volume of water to that found in the Western states' snowpack in a system of reservoirs range from $2.3 billion to $348 billion (Adams et al., 2004).
2. Enhanced NOAA satellite imager and sounder to improve short-term (3-hr) temperature forecasts: $9 million/year derived from improvements in frost mitigation (NOAA, 2002).
3. Potential benefits from better forecasting of snow and snow events include: improvements in frost forecasts (up to $6,000/hectare/year for fruit orchards) (Abawi et al., 1995).
4. For every $1 that railway companies spend in acquiring NOAA climate data, they receive a $13,140 savings in infrastructure costs that would be required to maintain their own climate database storage, archiving, and reporting system. After extrapolating these savings to the entire Class I freight railroad sector, the potential benefits are approximately $11.5 million (Centrec, 2005).
5. Potential economic benefits from better forecasting of snow events include: icing diagnostics at airports (exceeds $600 million/year at U.S. airports) (Adams et al., 2004)
6. The economic benefits of the Integrated Icing Diagnostic Algorithm is $33.7 million/year, as derived from a reduction in air travel accidents (Paull, 2001)
7. Integrated terminal weather system services provide economic benefits of $176 million/year from improved air traffic decision making, resulting in reduced gridlock and delays (Alan et al., 2001)
8. Weather sensing, data fusion, and forecasting services create an economic benefit of $590 million/year from improved travel safety and national delay reduction. Benefits for specific airports include: $16.7 million for SEA, $25.7 million for LAX, and $119 million for SFO (Evans et al., 1999)
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 enhances long-range stream flow forecasts, creating over $170 million/year in hydropower economic benefits for three river systems (Adams et al., 2004)
12. 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)