CASE NUMBER: 340

CASE MNEMONIC: WEATHER

CASE NAME: Weather Information Commodification

• IDENTIFICATION
• LEGAL CLUSTERS
• GEOGRAPHIC CLUSTERS
• TRADE CLUSTERS
• ENVIRONMENT CLUSTERS
• OTHER FACTORS

I. Identification

1. The Issue

Not all countries are able to keep up with the technologies needed for advanced weather tracking, such as satellites. Even those countries are now forced to share the price with countries to send up even more expensive and advanced satellites.(1) Because of this expense, many of the countries with satellites already in orbit, such as New Zealand, have been looking into charging fees for certain types of weather information. In June 1995 the World Meteorological Organization (WMO) members voted to allow some commodification of weather data. (2) As a result, there would be a two tiered system of weather data. The first tier, which would be shared with all nations, would include hurricane, severe weather tracking, ozone depletion information, etc. The second tier would include local forecasts and is where the fees would be enforced. This however is becoming another North/South issue of contention. This becomes a problem because those countries without funds, will be unable to obtain the commodified information. This will put the wealthier countries at a distinct advantage over the less developed states.

2. Description

The collection of weather data was started by recording observations of daily weather in different areas, a science is known as Meteorology. Aristotle, the author of Meterorologica, studied the weather as early as 400 BC. In the 19th century, the scientific progress of meteorology leaped forward with the beginning of the fields of thermodynamics and hydrodynamics. There are weather records dating back as early as the 14th century, but no extensive systematic observations were made until the 17th century. With the invention of the telegraph in the mid-19th century, it was possible to transmit weather data for an entire country to one central location for "correlation" and possible predictions. During WWI, Norwegians, such as Vilhelm Bjerknes, discovered the intricacies of interacting air masses that cause storms, otherwise known as fronts. Later, Lewis Fry Richardson, a British mathematician, was the first to attempt to discover numerical solutions for the prediction of weather. After WWII, the jet-stream, "a river of air circling the globe high in the atmosphere" was discovered by Carl- Gustav Rossby and in the 1950s, computers were put to work to discover the applications of hydrodynamics and thermodynamics theories to the problem of weather forecasting. Today these computers are used extensively in calculating weather predictions. (3)

Satellites have made important contributions to the observation of cloud patterns. The world's first weather satellite, the TIROS I (launched in 1960), began a new era in data collection. With satellites, data collection became the domain of the governments. Only they had the funding and the interest in reliable weather predictions. In many countries, weather collection was first under the jurisdiction of the military, then later the civilian governments. Even so, governments shared information. NASA invited scientists from 21 countries to assist in the analyzation of the data collected by TIROS I, an indicator of how weather data has been considered to be a good that should not be commodified. (4)

The International Meteorological Organization (IMO) was created in 1873 to coordinate weather data and its dissemination among nations. It was believed that all member countries had the right to the information. Today, weather information is filtered through the IMO's descendent, the World Meteorological Organization (WMO), which is a specialized agency of the United Nations (UN). This organization has responsibility in all areas of weather information distribution. It helps coordinate severe storm warnings and tracking, keeps long term data on weather trends (i.e. global warming), distributes warnings if unhealthy chemicals are spilled into the air, warns ships and aircraft of dangerous weather, and so on. (5)

This organization assists its members in providing reliable weather data and services for the public's safety and information. The WMO also coordinates in improving its members' National Meteorological Services and education and training programs for the public. One of the organization's most important programs is the dissemination of hazardous weather information. This program helps member countries track and prepare for severe weather, such as hurricanes. Another specialized task of the WMO is to provide support for the United Nations' humanitarian aid projects. (6)

With the growth of a market for weather data growing, Annex 2 to WMO Resolution 40 tries to coordinate the growth of commerce in the meteorological data field. The Twelfth World Meteorological Congress in June 1995 passed this resolution in the hopes that it would provide a guideline for acceptable distribution of the information. The WMO will provide the National Meteorological or Hydro meteorological Services (NMSs), of each country, with its information. The NMSs, such as National Oceanographic and Atmospheric Administration (NOAA) in the United States, can only charge other countries for this information if additional services are provided and if the importer does not object.

The NMSs should make efforts to ensure that the conditions which have been applied by the original owner of the new data and products are made known to the new and subsequent buyers. The original owner is permitted to take appropriate action if these conditions are not honored, including refusing to sell additional information and products to the offender.

Another guideline is that a NMS that receives a request from a country for information should first refer the request to the NMS in the original country unless it is unable to fulfill that request. NMSs should also share information and expertise on commercial activities. These organizations should also take into account the legal and administrative frameworks which may regulate NMSs in other countries. Most importantly, NMSs should refrain from using WMO data is ways that might jeopardize public safety. This could mean not releasing information about severe weather, or releasing it in such a way to cause panic. (7)

Under Resolution 40, data that is not to be commodified included as much data as possible that will help the WMO in defining the state of the atmosphere at least on a scale of 200 km above the surface and six to 12 hour increments (the ozone), all "in situ" observations from the ocean, six-hourly surface synoptic data from RBSNs, all available aircraft reports, all available data from upper air sounding networks," reports from stations that are essential for providing an accurate representation of the climate, "products distributed by "Wacs and RMCs" to meet their WMO obligations, severe weather warnings and advisories in order to protect the lives and property of those who would be affected, and data and products from a country's satellites due to prior agreement with the WMO. (8)

The advent of commodification indicates that a market for weather data has grown and that it can be an excludable good. This means that not all people will have access to the information, only those with enough money will be able to obtain all of the available weather information. Local weather stations use national data to forecast the weather. With the implementation of fees, these local stations will have to pay the fees or go out of business and this could exclude poorer areas from obtaining accurate and detailed information . (9) Without this type of information, accidents, like the one that killed Commerce secretary Ron Brown, will increase. That accident was caused by thick fog on a mountain and without local forecasts, tragedies like this will not be avoided. (10)

This has important implications for trade and environment. In terms of trade, weather affects all products and most of the production process. Besides the obvious affect weather has on agriculture, all products must be shipped by land, sea or air. (11) Bad weather can bring this all to a halt as was seen in the East Coast of the United States During the 1995-96 Winter Season. Entire cities came to a halt under mounds of snow. Food delivery trucks could not get through, and airports remained closed for days. The North East United States was virtually shut down for a few months with record snowfall. Local weather stations were able to warn citizens a day or two ahead of time, enabling them to stock up and stay at home, yet the weather still claimed up to ninety lives. (12) Besides winter weather, floods can also put a damper on transportation and even thunderstorms can ground planes for hours at a time and blow ships off course. (13)

Weather information is also important for national security. For example, the agriculture sector of a nation's economy depends on this information. If this sector is large in a particular country, then its dependency on good data is more significant because it is in a nation's interest not to become dependent on others for food. It is also vital to the military of a nation. Troops who know what the weather will be like in a given area will be more prepared than those who do not. This can be seen continuously throughout history with the German and French (Napoleon) invasions of Russia, Normandy, and the recent events in Bosnia. US military troops were hampered continuously by the rain and fog in Bosnia. Up until recently, weather data was a government-owned, public good, or a good that can be used by all and its use does not prevent others from using it as well. National highways are an excellent example.

Another reason weather information is important is for environmental conservation information. Tracking of global warming could save the entire planet and local forecasts could cause preparation for floods and prevent environmental damage in some areas. This data can also determine areas that have been over farmed or stripped by forestation, such as the Sahara Desert. The same technology that is used for collecting weather data, can be used to see the amount of damage that is done with oil spills and other man made disasters.

The dissemination of weather data has a large affect on the telecommunications industry. To send out all of the weather information, the WMO and NMSs have used a large telecommunications network with computers becoming an important part of the system. There is a large push to provide this type of system for remote areas that have difficulty receiving news from the rest of the world. This industry has also helped push the development of supercomputers and telecommunications further and at a more rapid rate. These computers can track everything from jetstream and hurricane projections to sunspot cycles. (14)

3. Related Cases

(1) BIODIV case

(2) CHINCOAL case

(3) CO2TRADE case

(4) COLDEFOR case

(5) ECCARBON case

(6) MONTREAL case

(7) SST case

(8) SULFER case

Key Words

(1) Trade Product: Information

(2) Industry: Services

(3) Scope: Global

4. Draft Author:

II. Legal Clusters

5. Discourse and Status:

Resolution 40 of the WMO has been voted on and adopted by its members.

6. Forum and Scope:

The World Meteorological Organization is a part of the United Nations. The decisions of the WMO are voted upon by its members.

7. Decision Breadth:

The United Nations Meteorological Organization Members which includes 176 nations and 5 territories. (15)

8. Legal Standing:

The United Nations resolutions are part of international law. This case falls under the jurisdiction of the World Meteorological Organization's Resolution 40, Annex 2, which coordinates the commodification of weather data. (16)

III. Geographic Clusters

9. Geographic Locations

a. Geographic Domain: Global

b. Geographic: Global

c. Geographic Impact: Global

Weather affects every aspect of the planet. Therefore, every part of every continent on the globe is influenced by this decision.

10. Sub-National Factors:

11. Type of Habitat:

Since the weather affects all forms of life on the planet, its commodification could potentially have an impact on every creature. The exclusion of certain areas from free information could have negative impacts on the creatures and plant life that exist on earth.

IV. Trade Clusters

12. Type of Measure:

Weather data is a typical example of intellectual property rights. However, in this case, it is not a matter of stealing ideas, but of not sharing information.

13. Direct v. Indirect Impacts:

14. Relation of Trade Measure to Environmental Impact

a. Directly Related to Product: NO

b. Indirectly Related to Product: YES, Information

c. Not Related to Product: NO

d. Related to Process: YES Global Warming

15. Trade Product Identification:

The product is weather information, including local forecasts, drought and flood information and long-term trends. This affects all commerce and trading, product shipments by land sea and air, and commodity products. In the United States, the National Research Council reported that hazardous weather caused 28% of all aircraft accidents between 1988 and 1992. (17)The Air Transport Association attributes a loss of "at least $4 billion annually due to weather-related aircraft delays." (18)

16. Economic Data

The weather affects commerce on every level. Harsh weather can have negative impacts on an entire country's economy. An example is the harsh weather in the United States' east coast during the 1995-96 winter season. The US Commerce Department reported on March 21, 1996 that business inventories rose 0.6% in January 1996 due to harsh weather conditions. This was the largest increase since the 0.7% increase in October 1995.(19) Also a combination of weather and government shut-downs resulted in a loss of anywhere from under $1.75 to $22.4 billion in the winter season. (20) In January 1995 the National Association of Realtors reported a 4.5% decrease in sales for previously owned homes due to inclement weather. Although these were severe weather conditions, if local weather stations did not have the information needed to warn the public, there could have been an increase in deaths and damage due to these storms. Local forecasts warned people to stay home and stock up on supplies. During December 1995 the futures prices for natural-gas rose 29% due to the unusually cold weather. (21) For the First time in decades, petroleum refinery utilization was up to 90.3% due to this same weather. (22) In order for US farmers to keep up with the international market, the United States will need improvements in its weather data collection. The price for improvements are estimated at $145 million. (23)

17. Impact of Trade Restriction:

18. Industry Sector:

Weather affects all industries. Construction cannot continue if the weather is too cold, shipping, aviation, and ground transportation is made difficult in inclement weather, agriculture is dependent on just the right amount of rain and sun, and consumers do not venture out to stores in bad weather. These are only a few examples of the diverse ways weather can have an effect on commerce. The withholding of weather information for fees could hinder the fluidity of commerce and trade with uncertainty. Also, in order for industries to obtain the needed weather information, the may have to raise the prices of their products.

19. Exporters and Importers:

V. Environment Clusters

20. Environmental Problem Type:

21. Name, Type, and Diversity of Species

All living creatures and organisms on the planet are affected. These weather programs track ozone layer depletion, hurricanes, floods, droughts, famine, fire, tornadoes, etc.

22. Resource Impact and Effect:

The impact of weather commodification would be higher in less developed countries than in those countries who already have weather satellites. The commodification of this information is also regulatory in nature. Resolution 40 discusses guidelines for the sale of this data.

23. Urgency of Problem:

24. Substitutes:

There are no substitutes for the data gathered by weather satellites. However, cheaper technology and programs may help level the playing field. Also, some developing countries have begun to buy time on satellites. This limited use may help fill in the gaps left by the information that has been commodified.

VI. Other Factors

New Zealand Weather Home Page

World Meteorological Organization Home Page

WMO Resolution 40

National Oceanographic and Atmospheric Administration