On modelling and pricing weather derivatives

By Peter Alaton, Boualem Djehiche, David Stillberger. 2002

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Temperature models for pricing weather derivatives (2012, methodology): “In general, they use the same process (3) as Alaton et al. (2002).”
Temperature stochastic modeling and weather derivatives pricing: empirical study with Moroccan data (2009, background): “[1], suppose that the volatility of the temperature process varies through different months, but it remains nearly constant within each month.”
A Spatial-temporal Model for Temperature with Seasonal Variance (2007, background): “Alaton et al. (2002) and Campbell & Diebold (2005) consider data sets of DAT observed for more than 40 years in Sweden and the USA, respectively.”
The volatility of temperature and pricing of weather derivatives (2007, methodology): “Alaton et al. (2002) use a similar model for data collected from Bromma, Sweden, with a time-dependent variance. However, they smooth this out to obtain a constant variance over each month. They calculate the prices of several different kinds of temperature derivatives. Finally, we would like to men”
Stochastic Modelling of Temperature Variations with a View Towards Weather Derivatives (2005, methodology): “From Alaton et al. (2002) we know that certain derivatives based on temperature are highly dependent on the mean-reversion parameter, and the variability of this will thus have a significant influence on the derivatives prices.”