scholarly journals Weather Derivatives in Russia: Farmers’ Insurance against Temperature Fluctuations

2018 ◽  
Vol 6 (1) ◽  
pp. 29-42
Author(s):  
E. Carkin ◽  
S. Chekirov ◽  
A. Echimova ◽  
C. Johnston ◽  
C. Li ◽  
...  
Keyword(s):  
Crop Yield ◽  
Temperature Fluctuations ◽  
Weather Conditions ◽  
Effect Of Temperature ◽  
Crop Loss ◽  
Simulation Tool ◽  
Weather Derivatives ◽  
Microsoft Excel ◽  
Financial Instrument ◽  
Daily Temperature Fluctuations

This project proposes the use of weather derivatives, a type of financial instrument with a payout based on weather conditions, as a method for Russian farmers to hedge against daily temperature fluctuations. We created a weather derivative simulation tool in Microsoft Excel that calculates the effect of temperature on crop yield and then analyzes how the return of weather derivatives can potentially compensate for crop loss. Based on this tool, we developed a series of recommendations to help implement this system of protection with real users.

Comparing two start up strategies and the effect of temperature fluctuations on the performance of mainstream anammox reactors

Chemosphere ◽  
2018 ◽  
Vol 209 ◽  
pp. 632-639 ◽  
Author(s):  
Guopeng Wang ◽  
Dong Zhang ◽  
You Xu ◽  
Yu Hua ◽  
Xiaohu Dai
Keyword(s):  
Temperature Fluctuations ◽  
Effect Of Temperature ◽  
Start Up

scholarly journals A Methodical Approach to Design and Valuation of Weather Derivatives in Agriculture

2013 ◽  
Vol 2013 ◽  
pp. 1-8 ◽  
Author(s):  
Jindrich Spicka ◽  
Jiri Hnilica
Keyword(s):  
Risk Management ◽  
Low Income ◽  
Crop Yields ◽  
Option Price ◽  
Interdisciplinary Approach ◽  
Weather Conditions ◽  
Low Income Countries ◽  
Management Tool ◽  
Weather Derivatives ◽  
Methodical Approach

The paper deals with weather derivatives as the potentially effective risk management tool for agricultural enterprises seeking to mitigate their income exposure to variations in weather conditions. Design and valuation of the weather derivatives is an interdisciplinary approach covering agrometeorology, statistics, mathematical modeling, and financial and risk management. This paper first offers an overview of data sources and then methods of design and valuation of weather derivatives at the regional level. The accompanied case study focuses on cultivation of cereals (wheat and barley) in the Czech Republic. However, its generalizability is straightforward. The analysis of key growing phases of cereals is based on regression analysis using weather indices as the independent variables and crop yields as dependent variables. With the bootstrap tool, the burn analysis is considered as useful tool for estimating uncertainty about the payoff, option price, and statistics of probability distribution of revenues. The results show that the spatial and production basis risks reduce the efficiency of the weather derivatives. Finally, the potential for expansion of weather derivatives remains in the low income countries of Africa and Asia with systemic weather risk.

scholarly journals Response of Development and Body Mass to Daily Temperature Fluctuations: a Study on Tribolium castaneum

2016 ◽  
Vol 43 (3) ◽  
pp. 356-367 ◽  
Author(s):  
P. Kramarz ◽  
D. Małek ◽  
K. Naumiec ◽  
K. Zając ◽  
S. M. Drobniak
Keyword(s):  
Body Mass ◽  
Tribolium Castaneum ◽  
Temperature Fluctuations ◽  
Daily Temperature ◽  
Daily Temperature Fluctuations

scholarly journals Weather derivatives and hedging the weather risks

2014 ◽  
Vol 60 (No. 7) ◽  
pp. 309-313 ◽  
Author(s):  
J. Taušer ◽  
R. Čajka
Keyword(s):  
Weather Conditions ◽  
Business Case ◽  
Main Issue ◽  
Weather Derivatives ◽  
Advantages And Disadvantages ◽  
Financial Products ◽  
Hedging Effectiveness ◽  
Weather Risks

The article focuses on weather derivatives with the aim to present the substance of weather derivatives as relatively new financial products and to discuss their advantages and disadvantages when being used as a tool to diminish the loses coming from these suboptimal weather conditions. We conclude with the findings that weather derivatives have a great potential to develop further. They provide an opportunity to hedge against the suboptimal weather conditions at reasonable costs. However, the hedging effectiveness is the main issue to be analyzed in each specific business case.  

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