DETERMINING BENEFITS

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DETERMINING BENEFITS Performance Assessment
of Observing System Productsin Market and Policy
Decisions
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Other sectors---other uses
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Conclusions

• Budget support for ocean observation systems will
  be sold on their operational benefits
• Economics can help justify investments and inform
  the design and priorities
• US economists eager to collaborate in
  international cost benefit studies

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How to Calculate the National Return on
Investment?

• Economic Cost-Benefit Analysis
• Business/Policy Trials or Performance Assessment
• User-Supplier Partnership with short term Goals
• Environmental Forecast Transforms into
  Business/Policy Forecast
• Improved Skill of Environmental Forecast
  increases Skill of the Business/Policy Forecast,
  thus Demand Pull
• Requires Information from Ocean, Weather and
  Climate Observing Systems
• Guides Marketplace Decisions and Strategy
• Informs National Policy and Strategy
• Prioritizes National S T Strategy for Observing
  system design, implementation and operational
  decisions

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Leisure Industry Importance in Economies and
Societies

• GDP output in 1999 of equivalent to 3.5 trillion
  US
• 11 per cent of all international consumer
  expenditures, 11.3 of all capital investment,
  6.7 of all government spending
• worlds largest tax contributor with an estimated
  800 billion contribution in personal and
  corporate taxes for 1999
• over 25 of the worlds trade in services
• worlds fastest growing industry
• worlds second largest employer next to
  agriculture, providing direct or indirect
  employment for 200 million people or one out of
  every 12 workers
• Using Observing system products to help this
  industry creates worldwide advocacy

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Leisure Industry Needs
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Trials Method Template or Roadmap

• Generic concept portable to all nations,
  industries, observing systems and products
• Starts with the Function of Decision Making
• Identify Organisational Units making the decision
  into which environmental information fits
• ID the business forecast models, formats, portals
• Tailor environmental forecasts to need
• Assimilate information
• Generate scenarios
• Analyse options
• Evaluate consequences (fiscal and risk)

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Relevance to GOOS

1. Promotes Kofi Annans View of Engaging the
   Private Sector in UN Goals and Vision
2. Generic Approach Aiding Governments, Ministries
   and Private sector
3. Supports Sustainability- Solutions for Nations
   not sectors
4. Creates Advocacy, Investment, Demand Pull
5. Portable to Developed and Developing Nations
6. Fosters Capacity Building, Training, Dialogue
7. Gives Direction and Context to Observing System
   Improvements
8. Assesses All Observing System Products
9. Shows Value for Past and Future Investment

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Challenge 2Develop a Sustained Investment
Strategy for GOOS