Economic Analysis of National Measurement System

 

Economic Analysis of National Measurement System

Introduction

An analysis of the total measurement system, especially in the quantitative benefit-cost is bound to fail since our modern society could not function without a systematic way of acquiring measurement data; the value of having a measurement system is incapable. In this article we are going to discuss the role of legal metrology weights and measures for economic analysis.

Legal Metrology for the Market Economy 

Many governments have moved to the market economy approach to providing government service with a change to emphasize from output to outcomes. As a result, there is a need to provide a measure of benefits of government programs both to support and justify budgetary allocation to prioritize expenditure between components of a program is an initiative of the legal metrology system.

Legal Metrology weight measurement has considered the approaches adopted by different Metrology institutions for quantifying the economic benefits of metrology. Consideration will now be given to the different approaches that have been adopted to assessing the economic impact on the followings:

  1. The national measurement system. 
  2. The trade measurement system. 
  3. The Specific function of metrology authorities. 
  4. Trade measurement industrial sector. 
  5. Regulatory measurements. 
  6. International recommendations. 

Legal Metrology for Measurement

The public collectively has a good characteristic of measurement and identifies several areas where reliance on the private sector could result in a misallocation of resources. The goods of public characteristics also create difficulties in conducting cost benefit analysis for measurement resource allocation and the report suggests that cost effective analysis that is comparing the cost of alternative ways of achieving a specific predetermining goal may be more useful analysis as per the legal methodology which tells its contribution to the public and to the economic system of the country.

Considering a number of micro studies of the cost and benefits from the perspective of physical scientists and this specific measurement function an alternative approach would be in the form of perspective of the user or the buyer in particular the consumer and notes that measurement problems for the consumer probably encompass most types of physical measurement. (Read also: Legal Metrology Department Functions for the Economy)

Economic Role of Measurement

First comprehensive estimate of the economic role of measurement has been quoted widely for its estimate of the economic benefit of measurement. The information provided on measurement incident intensity in the industry sector was also of great interest.

At various intervals of time the several survey information has been collected on the measurement labor intensity in each industry sector such as the economy sector, social sector etc. 

Economic of Measurement in the Natural Gas Industry

  1. The study of the economics of measurement in the natural gas industry has examined measurement issues within the gas supply from the transport stage to delivery to the final consumer.
  2. The gas market is moving towards increased market liberalization which calls for interoperability and simplification of rules, ever increasing gas to gas competition and this new market environment is creating additional demand for measurement services.
  3. The natural gas industry, manufacturer of gas measurement equipment and national metrology industries plays an important role in the Indian economic system for which the interest is maintained and getting the safeguard from the Legal Metrology system of India.
  4. Many of the economics studies on regulatory measurement have been focused on those measurements as technical barriers to trade and have evaluated the benefits of these measurements.


 

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