rainfall

This paper reports viability tests of prediction markets with highly granular, monthly UK rainfall and temperature joint outcome spaces. The experiments demonstrate these markets can aggregate the judgments of experts with relevant expertise, and suggest similarly structured markets, with longer horizons, could provide a mechanism to produce credible forecasts of climate-related risks for policy making, planning, and risk disclosure.

This article examines the performance of 24 prediction markets for climate-related variables that have been run over the past five years. The markets had horizons of 2 to 12 months. the predictions of the markets were consistent with good reliability, given the resolving power afforded by the sample size.