An Economic Analysis of the Benefits Created by NEXRAD – Study Approach

The current NOAA/NWS weather surveillance Doppler radar system, NEXRAD, has revolutionized the ability of weather forecasters to understand the severe storm environment and issue timely and accurate warnings. During the past quarter century, the NEXRAD program has executed a continuous program of modifications, retrofits, technology refreshments, and pre-planned product improvement upgrades with the aim to avoid obsolescence, improve data quality, meet new mission requirements, improve system maintainability and reliability, and control operations and maintenance (O&M) costs. Because of the challenges posed by obsolescence in the current system and the advancement of new technologies, plans are underway to replace the NEXRAD network.

NEXRAD data adds value across numerous industries. For example, in the aviation sector, the data is used for flight planning and safety, helping to avoid severe weather conditions, and reduce delays. Precipitation estimates are used in agricultural tools for crop conditions and predictions. Weather forecasters rely on the data for timely information on severe weather events, enabling quicker and more effective warnings and advisories, resulting in reduced casualties. Overall, NEXRAD's capabilities support various applications, improving safety, enhancing efficiency, and generating cost savings across multiple industries.

To fully understand the gains to society created by NEXRAD, the MITRE Corporation is conducting an economic analysis of the benefits of the current system. The analysis will also consider the potential benefits that could be gained from enhancements to the current radar network. This study will focus on describing and monetizing the value generated by a subset of applications. However, since the range of applications is likely broader than one can reasonably determine, the authors recognize that there is likely to be additional value beyond what can be assessed in a single analysis. The authors will discuss insights from the existing literature on societal benefits of weather assets, describe the planned approach, and provide preliminary results.