Legal Metrology plays an important role and it has various important factors which play the major role in the social and economic aspect of the country. It is just not about India only, it is about the entire world. Everyone is behind legal metrology and they cannot run their weights and measurement system without its help. In this article, we are going to discuss some international-level studies of legal metrology and assumptions on Legal Metrology of various authors and experts. We are going to discuss the history of legal metrology and how it works in various other sectors and what it all covers. As all are aware that wherever the weights and measures come, Legal Metrology is going to automatically cover that space. It plays a majorly important role and protects the rights of the consumer and its interest. Also on the other side of the coin it keeps the trade safer and secure for both the trader and the customer.
Support by Legal Metrology
Various theories have been developed by different authors across the world on Legal Metrology however they have kept on changing with the change of time and era but it always has significance and a great impact on society and the world as a whole. Legal Metrology provides support and helps the economic system of the country, and it plays a major role in the social factor in the society of all countries. We are heading toward discussing some of the major studies on Legal Metrology and the economic benefits of legal metrology.
Economic benefits of Legal Metrology
- The National Measurement System provided valuable information on the intensity of measurement expenditure in the industry sector in the economy and indicated that many of the highest measurement expenditure occurs in the trade and legal metrology sector for example government rates telecommunications utilities etc.
- The estimated measurement expenditure used in these studies is markedly less than those found by NBS and differences are highly significant to any economic analysis of the Legal Metrology system.
- The trade of goods and services around the world is vital for economic growth however for the well-being of the population and to maintain worldwide financial stability Legal Metrology laws are very important.
- Various International Studies highlighted the importance of knowledge in innovation and economic growth of Legal Metrology and the role of scientific Metrology in contributing to the knowledge base.
- They qualified this contribution using information from measurement-related patents and the studies have emphasised the spillover effect from the basic research that diffuses through the industry by increasing the human knowledge base.
- Legal metrology would contribute to this increasing knowledge and associated social benefits through the development of international recommendations and its compliance and enforcement program.
- However, what has not been analysed is the economic benefit provided by the state intervention in trade measurement transactions, in particular what economic distortion would occur if these measurements were left to the market without any intervention by the state, that is no legislative requirements, no pattern approval of measuring instruments, no enforcement, etc. (Read also: New Rules Which Have Been Framed Under the Legal Metrology Act)
History of Weights and Measures
- The history of weights and measures and the problem arising from the asymmetry of information would seem to indicate that under such a regime the error of measurement and their bias would be significantly greater resulting in increased you know mid distortions.
- These distortions would primarily arise from the use of measurement not fit for purpose, manipulation of large effect errors, and lack of third-party inspection and enforcement, increasing short-measure disputation and transaction cost.
- Estimating the value of these distortions would require more detailed information about the value and distribution of error and measurement instruments. However, it is assumed a normal distribution of error for this study of the information provided found a strong bias towards the short measure.
- There is also a need to clarify whether the economic distortion is the extent of error outside the Legal Metrology or of all the errors of measurements.
- An indication of the magnitude of such economic distortion resulting from the withdrawal of the state is provided by noting that the annual value of the trade measurement transaction in modern industrial society is about 50% of GDP and an increase of the average error of measurement is of 1% would create an economic distortion of 0.5% of GDP. However, such an amount is significantly greater than the expenditure by the government and maintains the national trade measurement system.
OIML Mutual Acceptance Arrangement
- The mutual acceptance arrangement for pattern approval testing, currently being developed by OIML will have a significant economic impact by eliminating multiple testing of instruments and facilitating the early entry of new instruments to the marketplace. OIML Certification.
- Qualifying the benefit of these agreements requires information on the current degree of multiple testing, the fees and other costs associated with the test, and the value of trade measurement instruments sold annually.
- However, the said information is currently not available and OIML is also considering developing these prepackaged goods. This is a sector where there is a significant technical barrier to trade and the value of goods trade globally is far greater than the measuring instrument. OIML Certificate system for weighing & measuring instruments.
Legal Metrology relations with regulatory Metrology
- Qualifying the benefits of regulatory metrology is far more difficult due to a large component of social benefits and public goods concerning legal metrology. In addition, we need to distinguish between the value of the regulation and the contribution made by legal metrology.
- The principal benefits of regulatory metrology were described under the act and the benefits of Legal Metrology to society were described on the international level.
- Some studies have also shown high social rates of return however the issue is often complex and qualifications can be difficult. The principle for the appropriate use of cost-benefit analysis for environmental, health, and safety regulation, relates to the regulation rather than regulatory metrology. The advantages of legal and regulatory metrology are given below:
- Benefit-cost analysis should be required for all major regulatory decisions.
- External review of regulatory analysis.
- It helps in distributional consequences to identify.
- Agency should not be found by strict benefit-cost tests and the factors such as equity across generations are important and the same is maintained by the legal metrology.
- It is also useful for comparing the favourable and unfavourable effects of policies.
- Economic assumptions used should include the social discount rate and the value of reducing the risk of premature death and accident and the value associated with another health improvement.
- The decision maker is precluded from considering the economic cost and benefit of different policies in the development of regulations.
- Agencies are allowed to use economic analysis to help set regulatory priorities.