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1.3 Market failure

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Question 27

Extract B

The role of national meteorological services

National meteorological services, such as the state-funded National Weather Office (NWO), provide critical weather forecasting and climate monitoring. The NWO is primarily funded through general taxation. Its core forecasts, daily tracking data, and severe weather warnings are distributed free of charge via its website, public radio, and mobile applications.

Once the NWO publishes emergency weather warnings, they are freely accessible to all citizens and businesses. No household is restricted in its usage of this information. Without central government funding, it is argued that private firms would under-provide general weather and climate tracking due to the free-rider problem.

The NWO's founding charter outlines its core public missions:

  • To deliver immediate, life-saving warnings for extreme weather events
  • To provide open-source climatological data to support research and education
  • To assist vital transportation sectors, such as maritime and civil aviation, with navigation safety
  • To supply agricultural communities with seasonal projections to safeguard food production

'National weather forecasting and climate alert services are a public good' (Extract B). Assess this statement.

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1.3 Market failure Questions

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  3. /1.3 Market failure