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.
 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.
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.