A market place designed to provide a variety of weather-sensitive institutions with products for dealing with their risks from weather-climate hazards has been developing in recent years. Shifts in demographics, growing population, and greater wealth across the U.S., coupled with de-regulation...

Previous studies have shown that weather derivatives are an effective means of hedging agricultural production risk. Yet, it is still unclear what role weather derivatives will play in agriculture as a risk management tool as compared with existing crop insurance programs which depend highly on...

The goal of the paper is to analyse the various issues attached to the valuation of weather derivatives. We focus our study on temperature-related contracts since they are the most widely traded at this point and try to address the following questions: (i) should the quantity underlying the...

Weather derivatives are designed to hedge the volumetric risk associated with unfavourable weather. They have the ability to hedge weather related volume or yield risk for the agricultural sector, although there are still many hurdles to their widespread implementation in Australian agriculture....