Flight to Gold: Extreme Weather Events and Stock Returns

2017 ◽  
Author(s):  
Matthew Lanfear ◽  
Abraham Lioui ◽  
Mark Siebert
Keyword(s):  
Stock Returns ◽  
Extreme Weather ◽  
Extreme Weather Events ◽  
Weather Events

Does extreme rainfall lead to heavy losses in the food industry?

2019 ◽  
Vol 32 (2) ◽  
pp. 244-266
Author(s):  
Edimilson Costa Lucas ◽  
Wesley Mendes-Da-Silva ◽  
Gustavo Silva Araujo
Keyword(s):  
Stock Returns ◽  
Food Production ◽  
Food Industry ◽  
Extreme Rainfall ◽  
Extreme Weather ◽  
Extreme Weather Events ◽  
Extreme Rainfall Events ◽  
Content Type ◽  
Weather Events ◽  
The Impact

Purpose Managing the risks associated to world food production is an important challenge for governments. A range of factors, among them extreme weather events, has threatened food production in recent years. The purpose of this paper is to analyse the impact of extreme rainfall events on the food industry in Brazil, a prominent player in this industry. Design/methodology/approach The authors use the AR-GARCH-GPD hybrid methodology to identify whether extreme rainfall affects the stock price of food companies. To do so, the authors collected the daily closing price of the 16 food industry companies listed on the Brazilian stock exchange (B3), in January 2015. Findings The results indicate that these events have a significant impact on stock returns: on more than half of the days immediately following the heavy rain that fell between 28 February 2005 and 30 December 2014, returns were significantly low, leading to average daily losses of 1.97 per cent. These results point to the relevance of the need for instruments to hedge against weather risk, particularly in the food industry. Originality/value Given that extreme weather events have been occurring more and more frequently, financial literature has documented attempts at assessing the economic impacts of weather changes. There is little research, however, into assessing the impacts of these events at corporate level.

Reliability, Resilience and the Oncoming Wave of Retiring Baseload Units, Volume I: The Critical Role of Thermal Units During Extreme Weather Events

2018 ◽  
Author(s):  
Peter C. Balash, PhD ◽  
Kenneth C. Kern ◽  
John Brewer ◽  
Justin Adder ◽  
Christopher Nichols ◽  
...  
Keyword(s):  
Critical Role ◽  
Extreme Weather ◽  
Extreme Weather Events ◽  
Weather Events

The economic costs of extreme weather events: a hydrometeorological CGE analysis for Malawi

2011 ◽  
Vol 16 (2) ◽  
pp. 177-198 ◽  
Author(s):  
KARL PAUW ◽  
JAMES THURLOW ◽  
MURTHY BACHU ◽  
DIRK ERNST VAN SEVENTER
Keyword(s):  
Computable General Equilibrium ◽  
Computable General Equilibrium Model ◽  
Extreme Weather ◽  
Mitigation Strategies ◽  
Extreme Weather Events ◽  
Economic Losses ◽  
Historical Events ◽  
Weather Events ◽  
Repeated Sampling ◽  
Droughts And Floods

ABSTRACTExtreme weather events such as droughts and floods have potentially damaging implications for developing countries. Previous studies have estimated economic losses during hypothetical or single historical events, and have relied on historical production data rather than explicitly modeling climate. However, effective mitigation strategies require knowledge of the full distribution of weather events and their isolated effects on economic outcomes. We combine stochastic hydrometeorological crop-loss models with a regionalized computable general equilibrium model to estimate losses for the full distribution of possible weather events in Malawi. Results indicate that, based on repeated sampling from historical events, at least 1.7 per cent of Malawi's gross domestic product (GDP) is lost each year due to the combined effects of droughts and floods. Smaller-scale farmers in the southern region of the country are worst affected. However, poverty among urban and nonfarm households also increases due to national food shortages and higher domestic prices.

Sign in / Sign up

Export Citation Format

Share Document