Evidence map›Paper›PMID 38744840›Full record

ArticleNature communications2024

Financial markets value skillful forecasts of seasonal climate.

Derek Lemoine, Sarah Kapnick

Abstract read
In one paragraph

Article in Nature communications, 2024. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 2 papers.

0numbers the graph read from it
0cells of the map it votes in
2citing papers in PubMed
–field-weighted citation impact
1 · What the graph read from it

What it found

Each row is one number read from the abstract, on the scale the paper reported it, with its interval. Left of the dashed line favours the treatment, right favours the comparator. Under each row is the sentence it came from. New to these charts? A ten-minute tutorial.

The abstract states no effect estimate the extractor could read, or names no intervention and outcome on the map, so this paper lights no cell and moves no belief. It is still indexed, cited and linked below.

2 · The registry

The trial behind it

Trials whose registry record cites this paper, or whose number appears in the abstract. A trial that started after this paper was published is citing it as background, not reporting it.

Neither the registry nor the abstract names a trial number. If this is a trial report, that itself is worth knowing.

3 · Its place in the literature

Who cites it

2 citing papers in PubMed.

  1. Weather forecasts become more important for reducing mortality as the climate warms.Proceedings of the National Academy of Sciences of the United States of America · 2026
    Article
  2. Article
4 · The record

Corrections and comments

PubMed lists nothing against this paper. Absence here is not a guarantee, only a check that was made.

5 · Who and what money

Authors and funding

2 authors.

Derek LemoineUniversity of Arizona, 1130 E. Helen St, McClelland 401, Tucson, AZ, 85721, USA. dlemoine@email.arizona.edu.ORCID http://orcid.org/0000-0002-1298-9472
Sarah KapnickNational Oceanic and Atmospheric Administration, 1401 Constitution Avenue NW, Room 5128, Washington, DC, 20230, USA.

Funding

United States Department of Commerce | National Oceanic and Atmospheric Administration (NOAA) NA18OAR4320124United States Department of Commerce | NOAA | Climate Program Office (NOAA Climate Program Office) NA18OAR4310261
6 · The paper itself

Abstract

Scientific agencies spend substantial sums producing and improving forecasts of seasonal climate, but they do so without much information about these forecasts' value in practice. Here we show that financial market participants value the production of seasonal forecasts: options traders price the uncertainty generated by upcoming United States National Oceanic and Atmospheric Administration Winter and El Niño Outlooks. Each outlook affects firms throughout the economy, with total market capitalization of $6 and $13 trillion, respectively. A 1% improvement in the skill of the El Niño Outlook reduces firms' exposure to a one standard deviation shock by $18 billion and induces traders to spend an additional $2 million hedging the outlook's news. Firms must not be able to undertake ex-ante adaptation that would eliminate their exposure to the forecasted portion of seasonal climate without imposing substantial costs of its own.

Identifiers

PMID38744840
PMCPMC11093977

What OpenQuestion holds

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LicenceCC BY
Read underepoch 390

Registered trials

None linked

Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.