In U.S. homes, 22 percent and 6 percent of the consumption of electricity is devoted to satisfy cooling and heating demands, respectively. A warming climate alters these consumption patterns by increasing the demand for cooling and reducing the demand for heating. This dissertation uses econometric techniques to examine the effect of climate change on the U.S. power industry through the study of the responsiveness of electricity demand to changes in temperature, and the impact of a climate-induced demand on electricity price and expenditures. In the second chapter a fixed-effects model and a cointegration model at the state level are used to investigate the determinants of residential, commercial and industrial electricity consumption for the 48 contiguous states. The results indicate substantial geographical heterogeneity in the response of demand to cooling and heating degree days, with the Midwest showing the greatest sensitivity. Residential consumers are impacted the most; on average, they experience a 13-18 percent increase in expenditures. In the third chapter the standard method of modeling electricity consumption is extended by the analysis of a wide range of set points above and below 65 F, and by including wet bulb temperatures. The statistical results for Massachusetts validate the use of 65 F for the residential sector, but demonstrate that a set point of 55 F and wet bulb temperature best characterizes the commercial sector. Using the models generated with these set points, climate change is projected to raise residential and commercial demand by 2.6 percent and 4 percent, respectively. In the fourth chapter, previous analyses on climate-induced expenditures are improved by accounting for the dual impact that climate change has on the electric power sector: an increase in both demand and price. A projected 2.6 C rise in temperature by 2070 in Massachusetts increases electricity prices by 11 to 18 percent. This increase in price, together with the increase in demand estimated in chapter three, translates into a 5.8 percent rise in expenditures for an average household. The results clearly demonstrate that climate-driven change in electricity price is the main determinant of the expected change in expenditures for electricity by households in the state.

Thesis deals with weather derivatives and their position within other financial instruments. It is divided into five main parts. The aim of the first part is to describe the basic mechanism and hallmarks of derivatives as a part of financial market. Also a brief history of weather derivatives is charted. The second chapter is focused on risk and fundamental risk factors and approaches. The weather risk management is presented. The third part discuses weather risk as special kind of risk. This part analyzes the impact of weather on the economy. The differences between weather derivatives and insurance are highlighted. The fourth chapter presents the weather derivatives from the users' points of view; it describes weather derivatives' structure and usage, main underlying indices and also looks on the pricing issues. In the final part the current situation and the possible future evolution of weather derivatives is presented. This part also includes information about the main organizations dealing with either weather management or derivatives.

The Florida manatee (Trichechus manatus latirostris), a subspecies of the West Indian manatee, is one of the most endangered marine mammals in United States waters. The Florida manatee is the only manatee that ranges into subtropical and temperate regions. During the winter months manatees adopt a “refuging strategy” where they aggregate at warm-water sources immediately following decreases in the ambient water temperature to below 20° C (68° F) in order to avoid cold stress syndrome (CSS). During the winter manatees aggregate in warm water refuges, including natural warm water springs and the effluent discharges of power plants. The purpose of this study was to determine the number of manatees that aggregate and utilize the waters of the Florida Power and Light (FPL) Plant in Port Everglades (PPE), Florida, its effluent canal, and the surrounding Intracoastal Waterway during the winter months. This study documents the importance of Port Everglades as a wintering refuge for the Florida manatee. This study analyzed the inverse relationship between the number of manatees present at a warm water effluent and water temperature. In this study data were collected over five manatee winter seasons (between 15 November and 31 March) from 1999-2004, from both boat-based and land-based surveys monitoring the presence of manatees in the effluent canal from the FPL electricity generating facility in Port Everglades, FL and the Intracoastal Waterway. Findings indicated that there was an inverse relationship between the number of manatees present and water temperature, where more manatees were present in cooler months, and fewer in warmer months. This study also analyzed the parameters of Catch per Unit Effort (CPUE) as well as heating degree-days and their effect on and relationship to the number of manatees present. The higher the heating degree-days number, the more severe, or cold, winter this indicates. The year with the highest heating degree-days, 24.98, was the 2002-2003 season, which was also the season with the highest number of manatees observed, 393, and the highest CPUE, 10.62 manatees/day.