IDEAS home Printed from
   My bibliography  Save this article

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.

Suggested Citation

  • Mirela MATEI & Catalin VOICA, 2011. "The Temperature-Based Derivatives Contracts – New Products Of Weather Risk Industry," The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 11(1(13)), pages 141-147, June.
  • Handle: RePEc:scm:ausvfe:v:11:y:2011:i:1(13):p:141-147

    Download full text from publisher

    File URL:,nr.1(13),2011_fulltext.pdf
    Download Restriction: no


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

    Cited by:

    1. repec:lde:journl:y:2017:i:87:p:191-222 is not listed on IDEAS
    2. repec:col:000174:015712 is not listed on IDEAS

    More about this item


    weather derivative; HDD; CDD; temperature;


    Access and download statistics


    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: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). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.