IDEAS home Printed from https://ideas.repec.org/p/ags/upaewp/18038.html
   My bibliography  Save this paper

Weather Derivatives: Concept And Application For Their Use In South Africa

Author

Listed:
  • Geyser, J.M.

Abstract

Recent innovations in energy markets suggest the possibility of addressing agricultural risk factors by issuing derivatives on weather elements. Such instruments appear particularly attractive, as asymmetric information and loss adjustment issues do not affect them. The paper first describes the concept, functioning and application of weather derivatives. It then examines the functioning and application of weather derivatives. It then examines the feasibility of rainfall derivatives to manage agricultural production risk in South Africa (SA) by evaluating the merits of rainfall options, and suggesting an option strategy, as a yield risk management tool. The use of rainfall derivatives in SA is likely to increase in future as capital markets, financial institutions, insurance companies, crop insurance companies and hedge funds collectively organize themselves to share and distribute weather risks.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:upaewp:18038
    DOI: 10.22004/ag.econ.18038
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/18038/files/wp040003.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.18038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Július Bemš & Caner Aydin, 2022. "Introduction to weather derivatives," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 11(3), May.
    2. Janda, Karel & Vylezik, Tomas, 2011. "Financial Management of Weather Risk with Energy Derivatives," MPRA Paper 35037, University Library of Munich, Germany.
    3. Dileep N & G. KOTRESHWAR, 2023. "Theoretical framework to introduce rainfall index-based futures contracts in India," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(635), S), pages 183-198, Summer.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:upaewp:18038. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/daeupza.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.