Cooling Degree Day

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Cooling Degree Day

A day on which the temperature in a certain area is above 65 degrees Fahrenheit, necessitating the use of air conditioners. Cooling degree days are used in some weather futures, which are contracts in which the buyer is required to pay the seller some multiple of $20 for each cooling degree day in a month, depending on how much warmer it is. Weather futures allow businesses to hedge against potential losses resulting from unexpected changes in weather. Energy companies are the most common sellers of weather futures. They have become relatively popular investments. See also: Heating degree day.
References in periodicals archive ?
Furthermore, the cost of living in state j, COSTj, is shown in column (a) to be an increasing function of the annual number of cooling degree days (CDDj), median family income (MEDFAMINCj), and population density (POPDENj).
Where [HDD.sub.r] and [CDD.sub.r] are monthly heating degree days and cooling degree days respectively for region r.
Currently only heating and cooling degree days have futures contracts.
Typically, cooling degree days are calculated as how much warmer the mean temperature at a location is than 65 degrees Fahrenheit on a given day.
where t-values are in parentheses; [COL.sub.j] is the cost of living for an average consuming unit in area j in 1995; [AREA.sub.j] is the geographic area of area j, expressed in square miles; [PCINC.sub.j] is per capita income in area j in 1994; [CHOPP.sub.j] is percentage change in population in area j from 1990 to 1994; [UN.sub.j] is the average unemployment rate in area j in 1995; [HDD.sub.j] is the average number of heating degree days in area j per year; [CDD.sub.j] is the average number of cooling degree days in area j per year; and [RW.sub.j] is a binary (dummy) variable to indicate whether area j is principally located in a state with right-to-work laws.
Looking back at the Phoenix Swap, this time with reconstructed data, AIR found that there now was an 86% chance that the contract would settle below 4,250 cooling degree days. "So this was not a 50-50 deal but more like 86-14," Gibbas said.
The new procedure uses data on heating and cooling degree days to model the effects of weather more accurately in those industries.
Cooling degree days are commonly used in studies of regional wage variation as a broad measure of climate throughout the year, while average January and July temperatures are included to account for seasonal extremes.
[1988] reported that precipitation, humidity, heating degree days, and cooling degree days were negatively related to housing expenditures - a proxy for land values - while wind speed, sunshine, and being close to the coast were positively related.
TVAs service territory experienced overall warmer-than-normal weather during the third quarter of 2018, as cooling degree days measured 36 percent above normal during the period.
The ASHRAE Handbook-Fundamentals states that the design conditions for Rio de Janeiro at 1% design temperatures are a dry-bulb temperature of 91.1[degrees]F (32.8[degrees]C), dew-point temperature of 76.9[degrees]F (24.9[degrees]C), and 4,135 cooling degree days (65[degrees]F) (2,297 cooling degree days relative to [degrees]C).
Where [HDD.sub.i] and [CDD.sub.i] are monthly heating degree days and cooling degree days respectively for region i where regions are defined as the area served by a particular power distribution company, in this case, KESC, [T.sub.i], is the monthly average temperature of region i, [T.sub.b] is the base temperature, m is the number of days in the month under consideration, y is a binary variable that equals 1 if [T.sub.1] < [T.sub.b] and 0 otherwise.