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The weather largely affects economic activity, and thus, companies vulnerable to weather risk need to plan ahead to cope with unexpected weather changes, just as they do for changes in interest rates, oil prices, or foreign exchange rates to stabilize their earning stream. Weather derivatives can be a useful tool for weather risk management.

This paper focuses on pricing one of the most popular weather derivatives -HDD/CDD options- and estimating the market price of weather risk (MPR). Historical data are used to construct the stochastic process of temperature, while the current market prices of Chicago and New York HDD futures options are used to extract the implied MPR. The Monte-Carlo Simulation Method is proposed to estimate the price of weather derivatives numerically. In addition, the approximate closed form formula for the options is provided modifying the Alaton, Djehiche, and Stillberg (2002) model. Finally, option price sensitivity to changes in MPR is analyzed to show the important role of the MPR in the weather option pricing model.

The main objectives of this paper are to measure weather-risks in Korean city-gas industry, whose revenue is strongly correlated with temperature changes, and show how managing weather-related risks using weather derivatives (priced using a utility indifference pricing technique) affects Korean city-gas industry's volatility of cash-flow through computational tests.

Since the fluctuation in temperature is the major risk factor for Korean city-gas providers (who are mostly nongovernmental companies), they can considered as strong potential participants in weather-derivatives' market. Therefore, it is worthwhile to investigate the impact of temperature changes on city-gas demands and the effectiveness of the application of weather-derivatives to city-gas providers' revenue. Our tests indicate that hedging weather-risks using weather derivatives can not only reduce the volatility of cash-flow but also increase cash income for Korean city-gas providers.

The increasing frequency and intensity of the extreme weather events could cause devastating consequences in tourism. Climate change–related extreme weather events and their relation to tourism is an emerging field for education and research. The purpose of this study is to categorize the impact of climate change on tourist destinations with regard to extreme weather-related risks in outdoor recreation and tourism. Managerial implications for policymakers and stakeholders are discussed.

To outline the risks from climate change associated with tourism, this study uses the Prisma analysis for identification, screening, checking for eligibility and finding relevant literature for further categorization.

Based on a thoroughly examination of relevant literature, risks and threats posed by climate change could be categorized into following four areas: reduced experiential value in outdoor winter recreation; reduced value in beach scenery and comfort; land degradation and reduced biodiversity; and reduced value in personal safety and comfort in tourism. It also focuses on the significance of using big data applications in catastrophic disaster management and risk reduction. Recommendations with technology and data analytics to continuously improve the disaster management process in tourism education are provided based on findings of this study.

Primary contributions of this study include the following: providing a summarized overview of the risks associated with climate change in terms of tourist experiential value for educational implications; and revealing the role of data analytics in disaster management in the context of tourism and climate change for tourism education.

This paper aims to study the effects of different weather conditions on typical concrete work tasks’ productivity. Weather is one important factor that has a negative impact on construction productivity. Knowledge about how weather affects construction works is therefore important for the construction industry, e.g. during planning and execution of construction projects.

A questionnaire survey method is used involving means to perform pairwise comparisons of different weather factors according to the analytical hierarchical process (AHP). The survey also contains means to enable assessment of the loss in productivity for typical work tasks exposed to different weather types. The survey targets practitioners involved in Swedish concrete construction projects, and the results are compared with previous research findings.

The survey covers responses from 232 practitioners with long experience of concrete construction. The pairwise comparisons reveal that practitioners rank precipitation as the most important followed by wind and temperature. The loss in productivity varies significantly (from 0 to 100%) depending on the type of work and the type of weather factor considered. The results partly confirm findings reported in previous research but also reveal a more complex relationship between weather and productivity indicating several underlying influencing factors such as type of work, type of weather (e.g. rain or snow) and the intensity of each weather factor.

This paper presents new data about how 232 practitioners assess the effects of weather on construction productivity involving novel means to perform objective rankings such as the AHP methodology.

Productivity and production risks affect the use of agricultural production practices and inputs, particularly in developing countries. This paper aims to investigate the effects of adopting drought-tolerant maize varieties (DTMVs) on farm productivity, yield variance and downside risk exposure of maize growing households of Zambia.

The study uses household survey data collected from 11 maize producing districts of Eastern, Southern and Copperbelt provinces of Zambia using a structured questionnaire. The Antle’s flexible moment-based approach was used in specifying, estimating and testing a stochastic production function. The study further applied an endogenous switching regression model to control for both observable and unobservable sources of bias.

The study revealed that DTMV adoption increases maize yield by 15 per cent and reduces the risk of crop failure: reducing yield variance by 38 per cent and exposure to downside risk by 36 per cent.

This study establishes the benefits of DTMV adoption in Zambia with regards to productivity, yield stability and downside risk in the face of climate change. Results from this study underscore the need for more concerted efforts to scale-out DTMVs for both maize productivity enhancement and for risk mitigation against weather shocks.

The purpose of this paper is to examine pro-poor urban asset adaptation to climate variability and change. It constructs a conceptual framework that explores the appropriate asset adaptation strategies for extreme poor households as well as the process of supporting these households and groups in accumulating these assets.

Qualitative data are obtained from life histories, key informant interviews (KIIs) and focus-group discussions (FGDs). These data are collected, coded and themed.

This research identifies that households among the urban extreme poor do their best to adapt to perceived climate changes; however, in the absence of savings, and access to credit and insurance, they are forced to adopt adverse coping strategies. Individual adaptation practices yield minimal results and are short lived and even harmful because the urban extreme poor are excluded from formal policies and institutions as they lack formal rights and entitlements. For the poorest, the process of facilitating and maintaining patron–client relationships is a central coping strategy. Social policy approaches are found to be effective in facilitating asset adaptation for the urban extreme poor because they contribute to greater resilience to climate change.

This study analyses the empirical evidence through the lens of a pro-poor asset-adaptation framework. It shows that the asset-transfer approach is an effective in building household-adaptation strategies. Equally important is the capacity to participate in and influence the institutions from which these people have previously been excluded.

The purpose of this paper is to design a unified operational design domain (ODD) monitoring framework for mitigating Safety of the Intended Functionality (SOTIF) risks triggered by vehicles exceeding ODD boundaries in complex traffic scenarios.

A unified model of ODD monitoring is constructed, which consists of three modules: weather condition monitoring for unusual weather conditions, such as rain, snow and fog; vehicle behavior monitoring for abnormal vehicle behavior, such as traffic rule violations; and road condition monitoring for abnormal road conditions, such as road defects, unexpected obstacles and slippery roads. Additionally, the applications of the proposed unified ODD monitoring framework are demonstrated. The practicability and effectiveness of the proposed unified ODD monitoring framework for mitigating SOTIF risk are verified in the applications.

First, the application of weather condition monitoring demonstrates that the autonomous vehicle can make a safe decision based on the performance degradation of Lidar on rainy days using the proposed monitoring framework. Second, the application of vehicle behavior monitoring demonstrates that the autonomous vehicle can properly adhere to traffic rules using the proposed monitoring framework. Third, the application of road condition monitoring demonstrates that the proposed unified ODD monitoring framework enables the ego vehicle to successfully monitor and avoid road defects.

The value of this paper is that the proposed unified ODD monitoring framework establishes a new foundation for monitoring and mitigating SOTIF risks in complex traffic environments.

The objective of this research is to examine the performance of weather routing service in the North Pacific Ocean based on a global container shipping company.

The data comprise two passages: one that departs from the port of Taipei to the port of Los Angeles (TPE-LAX) and another that departs from the port of Tacoma to the port of Kaohsiung (TCM-KSG). A weather routing service was utilized to compare the differences of the distance, sailing time and fuel consumed among different voyages.

Results indicated that the average speed of vessel in winter is faster than in summer. The vessels consumed much more fuel in the winter than they did in the summer. In terms of the distance of the passage, the results show that the ships' sailing distance across the North Pacific Ocean in the summer was shorter than it was in the winter.

Due to the difficultly of practical data collection, relatively few sailing records were employed in this study. It is suggested that additional sailing records should be collected, which adopt weather routing recommendations, to more comprehensively analyze sailing performance in future research.

The study's findings offer valuable guidance to different stakeholders in the maritime industry (e.g. seafarers, marine hull and machinery companies, Protection and Indemnity Club (P&I), ocean container carriers and freight forwarders) to clarify their responsibilities in order to achieve desired sailing outcomes.

To the best of the authors' knowledge, the current study is the first research to utilize practical sailing data to provide objective evidence of sailing performance based on a weather routing service, which can assist various stakeholders to make optimal decisions.

This study aims to analyze the media coverage of the impact of extreme weather events (EWE) and related risk management activities in Brazil.

Using a documentary analysis, the authors examined the media coverage of droughts and floods from 2003 to 2013 with concomitant official reports.

The results indicate that although media coverage conveys the direct impact of floods and droughts on society, it underemphasizes the importance of risk management activities. Moreover, the private sector rarely engages in risk management and mitigation activities, despite the documented supply chain disruptions.

This study focuses solely on media coverage as provided by wide-circulation newspaper in Brazil and would benefit by being extended to all media platforms.

The results highlight the need for private sector involvement in risk management activities to facilitate the adaptation to climate change.

The study reveals the deficiency of existing reports and lack of awareness regarding EWE.

The study contributes by focusing on climate awareness and how society can adapt to climate change, as well as how businesses can improve supply chain operations to facilitate smoother risk management.