The Economics of National Metrology Institutes: Valuing Measurement

This paper estimates the economy-wide economic value of expanding metrological services using the Centro Nacional de Metrología (CENAM) of Mexico as a case study. The analysis models and quantifies how additional metrological service varieties affect the activity of secondary calibration laboratories, with an input-output simulation framework, which traces the resulting spillovers to aggregate output. Based on these estimates, the paper computes the Net Present Value (NPV) of alternative service expansion scenarios over a 20-year horizon and a 12% social discount rate. The results show that expanding CENAMs service catalogue generates substantial positive social returns. Starting from 587 services, the addition of one new variety yields an NPV of approximately USD 4.4 million, while an expansion of 100 varieties can justify investments of up to USD 321 million. Sensitivity analysis confirms that these conclusions are robust under conservative parameter assumptions.