April 15, 2005 — When most people think of NOAA, words such as “ocean, atmosphere, weather, coasts and fisheries” come to mind, but rarely do we think of NOAA in terms of its economic and social contributions to the nation. But perhaps we should. After all, an essential part of NOAA’s mission is “to meet our nation’s economic, social and environmental needs.”

Almost all sectors of the nation rely on NOAA for an incredible variety of valuable products and services. NOAA provides weather, water and climate services; manages and protects fisheries and sensitive marine ecosystems; conducts atmospheric, climate and ecosystem research; promotes efficient and environmentally safe commerce and transportation; supports emergency response; and even provides vital information in support of homeland security.

Over the past few years, NOAA has been working to increase its capacity to qualify and, where possible, quantify the social impacts of its programs — both relative to their costs and to each other. The NOAA administration has also strongly supported the increased and more systematic use of social science in NOAA program planning and decision-making (as evidenced by the fact that socioeconomic principles have been endorsed in recent NOAA program guidance, program integration, research plans, and even the 2005-2010 NOAA Strategic Plan). Such actions should facilitate both more informed decision-making within NOAA and create added value for its end users.

NOAA Economics & Social Science Web Site
The new NOAA Economics & Social Science Web site has put a public face on the NOAA initiative to view NOAA as more than just the world’s leading Earth science agency, but also as a measurable asset to the nation. The Web site (developed by the NOAA Office of Program Planning and Integration and the NOAA Chief Economist, Rodney Weiher) provides visitors with a general overview of the importance of economics at NOAA and explains NOAA from a social science perspective.

Not only does the information on the Web site exhibit examples of the value that NOAA products and services provide to the general public, but it will also be instrumental in assisting the NOAA administration in formulating well-defined performance measures (at every level, from individual projects to entire Line Offices) — a critical first step in the optimization of resources throughout the agency.

Electronic Library
The NESS electronic library contains a collection of papers, articles and analyses on the socioeconomic impacts and benefits of NOAA products, services and related technologies. The links provided on the page also direct users to other Web locations within NOAA where important economic and social science research is carried out, as well as locations in other agencies, universities and research institutions where similar efforts are underway.

Co-evolution of Science and Society
The NOAA NESS site will soon also feature a section dedicated to the co-evolution of science and society. Throughout the nation’s history, innovation in oceanic and atmospheric science and technology has had a profound effect on society and vice versa. This relationship will undoubtedly continue into the future. On this page, NESS will offer reflection upon the events that have led NOAA to where it is today and insight as to where NOAA is likely to go in the future.

ECONOMICS AT NOAA
Economics is used to identify and measure the social costs and benefits of NOAA programs, products and services. Economic analysis employs a universal unit of measure, monetary value, to characterize costs and benefits and thus offers a common basis for comparison. It is an incredibly powerful, though by no means exclusive tool for decision-making.

As a social science, economics is essential for demonstrating the value of NOAA programs to those who contribute to and benefit from them, and also for providing the information necessary for NOAA itself to prioritize resources and improve management. For example, NOAA uses socioeconomic information to:

• Determine the value of programs and demonstrate it to others
• Decide which programs to support based on documented payoffs
• Measure program performance in ways that better reflect impacts and costs
• Make choices among services, uses and distribution
• Plan investments in physical and human resources
• Assess interrelated programs and understand what groups of programs add up to
• Avoid unintended consequences
• Develop targeted information systems
• Promote longer term thinking and planning for initiatives with substantial lead times or long payoff periods

Economic Analysis
Economic analysis concentrates on assessing costs and benefits of proposed and existing programs in order to quantify their net value. Typically, the costs are simply the budgetary expenditures made by NOAA, whereas the benefits occur across a range of user groups in society (from industries, such as agriculture and energy, to local communities and households). Economic analysis includes methods of valuation, cost benefit analysis, cost effectiveness analysis, etc. It is performed in conjunction with a variety of NOAA programs, either prior to their inception (such as an integrated, sustained, global ocean observing system), or after they have already been implemented (such as weather, climate and other environmental forecasting systems).

NOAA's Chief Economist
The NOAA Chief Economists primary responsibility is to initiate and manage economic analysis to support NOAA’s policy, program and budgeting process, as well as the NOAA Line Offices. The Chief Economist also coordinates economic and social science research activities among NOAA’s Line Offices, particularly the NOAA National Marine Fisheries Service (Office of Economics and Social Science Analysis), NOAA National Ocean Service (Special Projects Office), and the NOAA Office of Oceanic and Atmospheric Research (Sea Grant and Office of Global Programs).

The Social Science Initiative at NOAA
Over the last few years, there has been growing evidence of the importance of social science in NOAA planning and decision-making. Estimates of the value of NOAA products and services have and continue to be compiled, social scientists from across NOAA line offices are interacting on a more regular basis, many of NOAA’s socioeconomic projects have been inventoried and information on analyses, data and methods have been more widely shared. Social science plans are also being developed by NOAA offices, including the following:

• NOAA Marine Fisheries Service – where more than sixty economists/social scientists (both at headquarters and in the field) are supporting regulatory programs, fisheries statistics and industry analyses.
• NOAA Ocean Service – where a total of 10 economists are supporting damage assessment, recreation surveys and management programs (e.g. sanctuaries).
• NOAA Ocean and Atmospheric Research’s Climate Services Program – where social scientists are supporting human dimensions and regional assessments.

Lastly, budget submissions have even started to incorporate social science research plans and social science-based performance measures.

Status of Social Science in NOAA
NOAA is now implementing an agency-wide social science research program. Objectives include demonstrating the benefits of NOAA programs (such as links between research and product delivery), understanding NOAA customers and their needs, analyzing unique natural resource management and regulatory issues, and developing techniques and databases. Ultimately, this effort will help integrate social science research into NOAA planning and budgeting processes and facilitate the use of socioeconomic information in decision-making.

Why does NOAA need Social Science?
NOAA has, and will continue to, take great pride in ensuring that its stakeholders’ needs are met and that the suite of products and services that it offers continues to improve in quality and social value. To do this, NOAA works hard to understand current and emerging user requirements, as well as priorities and benefits of NOAA information, products and services. As a result, NOAA is developing a stronger economic and social science capability across interdisciplinary line offices each day.

By strengthening NOAA program planning and justification, decision-making, and performance measures based on socioeconomic principles, NOAA has, and will continue to, improve the effectiveness and the value of its programs to society. In terms of the future, NOAA’s goal is to use sound cost-benefit analyses, risk assessments, and economic and social impact analyses as it invests in new systems and facilities, products and services, research plans and management options.

Progress in this direction will depend upon the cooperation of programs across the agency in collecting and analyzing data on the social value of their work and helping others to understand it. NESS and the rest of the NOAA Office of Program Planning and Integration are committed to providing guidance and assistance to this end.

Relevant Web Sites

NOAA — WHERE SCIENCE GAINS VALUE

NOAA Economic Stats - 2004

NOAA Economics & Social Science Web site

NOAA Office of Program Planning and Integration

Media Contact:
David Miller, NOAA, (202) 482-6090