Spatial Risk Premium on Weather Derivatives and Hedging Weather Exposure in Electricity

Stochastic Models for Pricing Weather Derivatives using Constant Risk Premium

‎Pricing weather derivatives is becoming increasingly useful‎, ‎especially in developing economies‎. ‎We describe a statistical model based approach for pricing  weather derivatives by modeling and forecasting daily average temperatures data which exhibits long-range dependence‎. ‎We pre-process the temperature data by filtering for seasonality and volatility an...

Weather Derivatives in the Presence of Index and Geographical Basis Risk: Hedging Dairy Profit Risk

Weather Derivatives in the Presence of Index and Geographical Basis Risk: Hedging Dairy Profit Risk by

A spatial Bayesian approach to weather derivatives

Purpose – While the demand for weather-based agricultural insurance in developed regions is limited, there exists significant potential for the use of weather indexes in developing areas. The purpose of this paper is to address the issue of historical data availability in designing actuarially sound weather-based instruments. Design/methodology/approach – A Bayesian rainfall model utilizing spa...

Space weather influences on atmospheric electricity

Atmospheric electricity is a venerable topic of geophysical science, dating back to the 1750s when Franklin and Dalibard established the presence of electricity in thunderstorms. Subsequently even fine conditions were observed to be electrified, and a downward vertical atmospheric electric field of magnitude ~100V/m observed near the surface during fair weather conditions. The origin of the “fa...