Introduction of weather‐derivative concepts: perspectives for Portugal

Emerald - Tập 11 Số 1 - Trang 9-19 - 2010
AlievaGhiulnara1, CristinaViegas2
1Faculty of Management, Academy of Economic Studies of Moldova, Chisinau, Moldova
2CASEE – Centre for Advanced Studies in Economics and Econometrics, Faculty of Economics, University of Algarve, Faro, Portugal

Tóm tắt

PurposeThe purpose of this paper is to present an overview of weather derivatives markets and to highlight the importance of the contributing factors for weather risk management such as weather sensitivity, weather forecast, and economic growth. In this paper, the prospective of using weather derivatives in Portugal and why Portugal should use such instruments as well as the potential of Portugal's enterprises are presented.Design/methodology/approachThis paper attempts to distinguish the reasons for the appearance of a weather derivatives market and the growth potential of the European weather market.FindingsSuccessful development of a Portuguese weather derivatives market will require three things. For the successful development of weather derivatives market, a legal and economic framework is needed, as well as the development of new weather products, training of qualified specialists for working with these instruments and attracting companies interested in hedging their profits. A combination of these factors will help growth and will accelerate the development of a weather derivatives market in Portugal.Originality/valueThe paper identifies some conditions that could allow the progress of the weather derivatives market in Portugal.

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Emerald

Tập 11 Số 1

9-19

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