Weather derivatives

{
  "id": "MLC-T-MET-010169",
  "term": "Weather derivatives",
  "field": "Meteorology and atmospheric science",
  "definition": "Financial instruments whose value is derived from the occurrence or non-occurrence of a specific weather event or a weather-related index. These contracts allow businesses to hedge against financial losses caused by adverse weather conditions, such as unusually warm winters affecting energy demand. Common indices include heating degree days or cooling degree days.",
  "url": "https://mlchart.com/terminology/meteorology/weather-derivatives/"
}