In this paper I develop the concept of the “Weather Information Value Chain” as a tool for understanding the creation of value from hydromet information as well as explicating the difficulties of valuation and opportunities for value enhancement. Building on the value chain concept, I offer that economics as a study of human behavior and decision making can help in understanding the weather related decision making process and thus enhance product development, communication approaches, and ultimately decision making to increase societal value. I present an example of valuation of hydromet information in the context of a “value chain” based on research to improve forecasting for utility scale solar power generation (Haupt et al. 2016).
I briefly note several factors related to explication through the value chain model including (1) alternative methods for characterization of the information value process (Lazo et al 2016), (2) the significant opportunity for the application of concepts from behavioral economics for better understanding responses to hydro-met information, (3) the context, concept, and measurement of vulnerability and resilience within which the Weather Information Value Chain is embedded, and (4) ethical frameworks that should be more explicitly articulated in the process of value assessment as well as in decision-making for improving weather information processes.
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Haupt, S. E., and Coauthors, 2016: The SunCast Solar Power Forecasting System: The Result of the Public-Private-Academic Partnership to Advance Solar Power Forecasting. NCAR Technical Note NCAR/TN-526+STR, 307 pp, (available at: http://dx.doi.org/10.5065/D6N58JR2)
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