On Weather Derivatives and Temperature Swapping in Japan

要約

Until recently, the meteorological disturbances to the management of economic entities had to be simply accepted; however, several financial tools have been developed, with which we can cancel out the adverse influence of meteorological events. This paper will intend to examine 2 types of tools, weather derivatives and temperature swapping, which have been shown to work in Japan.

Keywords: financial engineering, catastrophe risk, HDD(heating degree days), CDD(cooling degree days)