Weather Derivatives as an Instrument to Hedge Against the Risk of High Energy Cost in Greenhouse Production

In many areas agriculture is exposed to weather related risks. Weather derivatives that get more and more in the focus of interest can reduce these risks. In this study we develop a temperature based weather derivative and analyse how it can reduce the weather-related energy cost risk in greenhouse production. We base this study on a temperature index whose stochastic characteristics are analysed. Finally we simulate the heating demand for energy of a horticultural firm.


Issue Date:
2006
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/25629
PURL Identifier:
http://purl.umn.edu/25629
Total Pages:
16
JEL Codes:
C22; D8; Q14
Series Statement:
Contributed Paper




 Record created 2017-04-01, last modified 2018-01-22

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