Article from Reason by Ronald Bailey.
Markets are superb at turning what participants believe to be facts into prices. An intriguing new National Bureau of Economic Research study on market expectations about climate change looks at the price trends of Chicago Mercantile Exchange (CME) weather futures contracts.
“The evidence shows that financial markets fully incorporate climate model projections,” conclude Columbia University’s agricultural and resource economist Wolfram Schlenker and sustainable development researcher Charles Taylor. “We find that the market has been accurately pricing in climate change, largely in line with global climate models, and that this began occurring at least since the early 2000s when the weather futures markets were formed.”
In 2001, the CME created a weather futures market enabling traders to hedge against losses stemming from fluctuations in the weather. As the researchers explain, the predominant contracts are based on heating and cooling degree days, which are indexed to 65 degrees Fahrenheit and encompass eight cities scattered across the United States. Cooling degree days (CDD) measure by how much and for how long temperatures exceed 65 degrees and thus require cooling. Conversely, heating degree days (HDD) measure by how much and for how long temperature fall below 65 degrees and thus require heating. The CDDs are traded for the months of May, June, July, August, and September, and the HDDs are traded for the months of November, December, January, February, and March. The payoff of these contracts is based on the cumulative difference between the daily temperature and 65 degrees Fahrenheit during a certain period of time, usually one month.
The notional value of weather futures and options traded on the CME in the last year adds up to more than $360 million, according to the Wall Street Journal. Over the counter trading values are much larger.
Read the entire article at Reason.
Image Credit: By Photo: Andreas Praefcke (Self-published work by AndreasPraefcke) [CC BY 3.0 (https://creativecommons.org/licenses/by/3.0) or GFDL (http://www.gnu.org/copyleft/fdl.html)], via Wikimedia Commons
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I really pay no attention to what the fanatics say anymore. I’ve done my own research and arrived at my own conclusions. Climate Change, Global Warming, Global Cooling (Ice Age coming) , hysteria is all about control and money. And that’s it. Emotion rules rather than truth and real verified facts. As Five British Scientists admitted to doing in constructing a “Missing Link” human skull because they ‘could not find a real one’, So the Climate Change “Scientific Community” is doing with the data. They are skewing , manufacturing, misinterpreting, embellishing, adding, omitting, and anything it takes to “Sell” it. Most people just ‘swallow’ it and go on. A few know the truth.
I agree wholeheartedly!!!!!
Donald Johansson found a skull in Africa, ( Oldivi gorge) That dated back to 2.3 million years.. And as for climate change,,,,,,,,,,,,, it’s real.. Watch 2 programs,,,, (1) 2 degrees Celsius,,, (2) Making of a continent,, “ALL” 6 episodes..
A dating flaw (check out how they dated it and then check the validity of the method) in favor of the fake ‘Scientist’ and nothing more. As for Climate Change. The Earth has been warming ever since the end of the last Ice Age. Do some research instead of blindly following hysterical and brainwashed idiots. I don’t see to watch your ‘Cartoons’ to know what is happening. Look at historical data. The real truth is there if you look. Don’t be misled by “Google” btw. Use other search engines.
I hate to burst your bubble. But you can check this out. A Team of “Scientists” were digging up a person’s back yard thinking they were finding prehistoric bird bones and fossils. The owner had to stop them and inform them that was where grandma used to bury her dead chickens.
Another incident in Fort Worth Texas where a child found and dinosaur femur. It was not fully fossilized which is not possible according to “Scientist”. Where is that bone now ? It was on display but has mysteriously disappeared. I wonder who has it now ? Just check things out. You have been brainwashed and misled by people with an agenda. Pictures of the Ice Caps were found to be mislabeled by a “Truth Seeker” who had copies of the correct photos. Once ‘Caught” the Australian Lab went bananas to cover their tracks. Don’t want to know more ? Well then don’t comment.
Really? Then if it is real then why do banks, all banks BTW, write mortgages in areas that would be likely to flood and therefore those houses would be underwater??? It’s a lie BTW. Remember, insurance doesn’t cover “acts of God” so flood insurance would be worthless. That’s like coastal areas like New York, Miami, San Francisco, L.A., San Diego, etc., etc. Do you really think they wouldn’t know about it? LMAO!
Amen!!
http://www.breitbart.com/big-government/2017/10/24/delingpole-now-400-scientific-papers-in-2017-say-global-warming-is-a-myth/
Is climate change real? Of course it is; The glaciers are proof, the geological formations prove that the climate has changed from one direction to another and back again several times; even before mankind existed!
The real question is: Is mankind changing the climate? Real evidence shows that only minimal change can be attributed to mankind, and James Singleton above is right; it’s all a made up ploy to scare people into submitting their natural born rights to the elite!
Can anyone say:
H-O-A-X?
When true scientists consider climate change they look at hundreds or thousands of years. When certain individuals try to equate single events such as a severe hurricane or other catastrophe to “climate change” they are fooling themselves or, more likely, trying to fool us. I feel it is either an ego trip or greed that tries to make us believe we are the cause of something governed by the sun, the changing axis of our planet and other possible influences which we do not control.
Can anyone say chemtrails/geoenginering weather warfare my God man.
take me off your e-mail list.
Climate change is settled science. It changes.
The climate will change no matter how many laws,taxes and restrictions are enacted. History AND science proves that. The people who promote this hoax want your money and your freedom!
These scientists want research money, O.K.! Every time they get a new satellite, a new microscope, etc, they come up with new data. They then use that data to convince people they need even more money for you guessed it, more research. It’s baloney.
Ok, so let’s do some trading in bandwidth, why don’t we?