IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The Temperature-Based Derivatives Contracts – New Products Of Weather Risk Industry

  • Mirela MATEI

    ()

    (Petroleum and Gas University from Ploiesti, Romania)

  • Catalin VOICA

    ()

    (Petroleum and Gas University from Ploiesti, Romania)

The temperature-based derivatives contracts have appeared while the first deregulations in the utilities and the energy sectors from USA in the years 1990-2000. The transfer of the some services in the private sector has involved a better control of costs and revenues of different companies. The private investors who have turned to this area, have imposed a risk reduction management more complex than that used by any public company, in order to ensure their profits and a smaller variation of profit from one year to another. Initially, the temperature-based contracts were traded on over-the-counter market, but this type of trading has not provided a fast development of market. A turning point in the growth of market was the launch of the first derivative exchange-traded contracts in the summer of 1999 at the Chicago Mercantile Exchange (CME).In this article, we conducted an analysis of the temperature derivative contracts having regard to their economic importance, the major implications of weather on national economies and lack of traditional insurance products for temperature’s variance. From their occurrence to date, these contracts have won every field that is influenced by meteorological variables always being finding new ways to translate in derivatives contracts different components influence of the weather.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.seap.usv.ro/annals/arhiva/ANNALS_vol.11,nr.1(13),2011_fulltext.pdf
Download Restriction: no

Article provided by "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration in its journal The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration.

Volume (Year): 11 (2011)
Issue (Month): 1(13) (June)
Pages: 141-147

as
in new window

Handle: RePEc:scm:ausvfe:v:11:y:2011:i:1(13):p:141-147
Contact details of provider: Postal: Universitatii 9, 720225; Suceava
Phone: +40 230 522978
Fax: +40 230 216147
Web page: http://www.seap.usv.ro
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:scm:ausvfe:v:11:y:2011:i:1(13):p:141-147. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Liviu Scutariu)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.