Weather Derivatives in Russia: Farmers’ Insurance against Temperature Fluctuations
https://doi.org/10.26794/2308-944X-2018-6-1-29-42
Abstract
This project proposes the use of weather derivatives, a type of financial instrument with a payout based on weather conditions, as a method for Russian farmers to hedge against daily temperature fluctuations. We created a weather derivative simulation tool in Microsoft Excel that calculates the effect of temperature on crop yield and then analyzes how the return of weather derivatives can potentially compensate for crop loss. Based on this tool, we developed a series of recommendations to help implement this system of protection with real users.
About the Authors
E. Carkin
Worcester Polytechnic Institute
Russian Federation
Russian Federation
S. Chekirov
Financial University under the Government of the Russian Federation
Russian Federation
Russian Federation
A. Echimova
Financial University under the Government of the Russian Federation
Russian Federation
Russian Federation
C. Johnston
Worcester Polytechnic Institute
Russian Federation
Russian Federation
C. Li
Worcester Polytechnic Institute
Russian Federation
Russian Federation
V. Secrieru
Financial University under the Government of the Russian Federation
Russian Federation
Russian Federation
A. Strelnikova
Financial University under the Government of the Russian Federation
Russian Federation
Russian Federation
M. Trier
Worcester Polytechnic Institute
Russian Federation
Russian Federation
V. Trubnikov
Financial University under the Government of the Russian Federation
Russian Federation
Russian Federation
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Review
For citations:
Carkin E., Chekirov S., Echimova A., Johnston C., Li C., Secrieru V., Strelnikova A., Trier M., Trubnikov V. Weather Derivatives in Russia: Farmers’ Insurance against Temperature Fluctuations. Review of Business and Economics Studies. 2018;6(1):29-42. (In Russ.) https://doi.org/10.26794/2308-944X-2018-6-1-29-42
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