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Financial Management of Weather Risk with Energy Derivatives

Author

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  • Janda, Karel
  • Vylezik, Tomas

Abstract

In this paper we describe the major issues in the weather risk management. We focus on the management of financial risks connected with weather. We first provide a general discussion of the impact of weather on the economy. Then we follow with the overview of the development of the weather risk management. The core of the paper in then devoted to the role of weather derivatives as financial tools for weather risk management.

Suggested Citation

  • Janda, Karel & Vylezik, Tomas, 2011. "Financial Management of Weather Risk with Energy Derivatives," MPRA Paper 35037, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:35037
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    File URL: https://mpra.ub.uni-muenchen.de/35037/1/MPRA_paper_35037.pdf
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    References listed on IDEAS

    as
    1. Geyser, J.M., 2004. "Weather Derivatives: Concept And Application For Their Use In South Africa," Working Papers 18038, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
    2. Sean D. Campbell & Francis X. Diebold, 2005. "Weather Forecasting for Weather Derivatives," Journal of the American Statistical Association, American Statistical Association, vol. 100, pages 6-16, March.
    3. Adam Clements & A S Hurn & K A Lindsay, 2008. "Estimating the Payoffs of Temperature-based Weather Derivatives," NCER Working Paper Series 33, National Centre for Econometric Research.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Július Bemš & Caner Aydin, 2022. "Introduction to weather derivatives," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 11(3), May.

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    More about this item

    Keywords

    Financial risk; Weather risk; Derivatives; Energy;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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