A Study on Meteorological Service Supply Mode from the Perspective of Transaction Cost

Because of the market demand, institutions and technology, the nature of goods of meteorological services has been changed from pure public goods to coexistence of public goods and private goods. The meteorological services supply modes have also been changed. The government and the private enterprises become the two supply subjects. Different modes have different transaction costs that are the criteria which measure the supply patterns. An effective meteorological service supply mode should minimize transaction costs. The paper argues that in the case of a rational tax system, public meteorological services should be provided by government departments, and commercial meteorological services provided by the private enterprises under a clear property rights.