Economic Assessment of Meteorological Information Services for Aquaculture in Taiwan

The main purpose of this research was to evaluate and analyze the economic value of the meteorological information services (MIS) provided by the Central Weather Bureau (CWB) when applied to aquaculture in Taiwan. In this research, a contingent valuation method (CVM) was used to inquire about the subjective rating given to the CWB’s meteorological information services based on the responses to a national level questionnaire distributed among aquaculture farmers. The subjective rating revealed how the aquaculture farmers rated the accuracy of the MIS provided by the CWB and how they recognized the impact of the MIS on their aquaculture output. On this basis, this research determined the economic value brought about by the application of the meteorological information services. In order to understand the main factors affecting the respondents’ willingness-to-pay (WTP) for the MIS, this research also conducted an empirical estimation of the bid function. The results indicated that the main factors affecting the WTP were found to include the respondents’ subjective rating of the meteorological information services (including the accuracy rating and the effect rating), traditional social and economic background variables such as income and education level, as well as fish species. In addition, through testing the estimation of the bid function, it was also found that the survey sample used in this research had a significant starting point bias effect, which needed to be corrected using econometric methods. According to the empirical results, the median willingness-to-pay (WTP) of aquaculture farmers in Taiwan was 3544 New Taiwan Dollars (NTD)/person/year and the total economic value at the national level ranged from 157 million to 209 million NTD per year. Since the MIS service users have often lacked sufficient knowledge and ability to interpret the weather forecasts, how to strengthen the capabilities of service users in using MIS through the promotion of training programs and improve the value of the MIS may be an important policy insight.