The inflation hedging characteristics of US and UK investments: a multi-factor error correction approach

Historic analysis of the inflation hedging properties of stocks produced anomalous results, with equities often appearing to offer a perverse hedge against inflation. This has been attributed to the impact of real and monetary shocks to the economy, which influence both inflation and asset returns. It has been argued that real estate should provide a better hedge: however, empirical results have been mixed. This paper explores the relationship between commercial real estate returns (from both private and public markets) and economic, fiscal and monetary factors and inflation for US and UK markets. Comparative analysis of general equity and small capitalisation stock returns in both markets is carried out. Inflation is subdivided into expected and unexpected components using different estimation techniques. The analyses are undertaken using long-run error correction techniques. In the long-run, once real and monetary variables are included, asset returns are positively linked to anticipated inflation but not to inflation shocks. Adjustment processes are, however, gradual and not within period. Real estate returns, particularly direct market returns, exhibit characteristics that differ from equities.

Fair weather atmospheric electricity

Abstract. Not long after Franklin’s iconic studies, an atmospheric electric field was discovered in “fair weather” regions, well away from thunderstorms. The origin of the fair weather field was sought by Lord Kelvin, through development of electrostatic instrumentation and early data logging techniques, but was ultimately explained through the global circuit model of C.T.R. Wilson. In Wilson’s model, charge exchanged by disturbed weather electrifies the ionosphere, and returns via a small vertical current density in fair weather regions. New insights into the relevance of fair weather atmospheric electricity to terrestrial and planetary atmospheres are now emerging. For example, there is a possible role of the global circuit current density in atmospheric processes, such as cloud formation. Beyond natural atmospheric processes, a novel practical application is the use of early atmospheric electrostatic investigations to provide quantitative information on past urban air pollution.

A study of the ethene-ozone reaction with photoelectron spectroscopy: measurement of product branching ratios and atmospheric implications

The ozone-ethene reaction has been investigated at low pressure in a flow-tube interfaced to a u.v. photoelectron spectrometer. Photoelectron spectra recorded as a function of reaction time have been used to estimate partial pressures of the reagents and products, using photoionization cross-sections for selected photoelectron bands of the reagents and products, which have been measured separately. Product yields compare favourably with results of other studies, and the production of oxygen and acetaldehyde have been measured as a function of time for the first time. A reaction scheme developed for the ozone-ethene reaction has been used to simulate the reagents and products as a function of time. The results obtained are in good agreement with the experimental measurements. For each of the observed products, the simulations allow the main reaction (or reactions) for production of that product to be established. The product yields have been used in a global model to estimate their global annual emissions in the atmosphere. Of particular interest are the calculated global annual emissions of formaldehyde (0.96 ± 0.10 Tg) and formic acid, (0.05 ± 0.01 Tg) which are estimated as 0.04% and 0.7% of the total annual emission respectively.

Radicals from the atmospheric pressure pyrolysis and oxidative pyrolysis of hydroquinone, catechol, and phenol

The burning of tobacco creates various types of free radicals that have been reported to be biologically active. Some radicals are transient but can initiate catalytic cycles that generate other free radicals. Other radicals are environmentally persistent and can exist in total particulate matter (TPM) for extended periods. In spite of their importance, little is known concerning the precursors of these radicals or under what pyrolysis/combustion conditions they are formed. We performed studies of the formation of radicals from the gas-phase pyrolysis and oxidative pyrolysis of hydroquinone (HQ) and catechol (CT) between 750 and 1000 °C and phenol from 500 to 1000 °C. The initial electron paramagnetic resonance (EPR) spectra were complex, indicating the presence of multiple radicals. Using matrix annealing and microwave power saturation techniques, phenoxyl, cyclopentadienyl, and peroxyl radicals were identifiable, but only cyclopentadienyl radicals were stable above 750 °C.

Cloud-base vertical velocity statistics: a comparison between an atmospheric mesoscale model and remote sensing observations

The statistics of cloud-base vertical velocity simulated by the non-hydrostatic mesoscale model AROME are compared with Cloudnet remote sensing observations at two locations: the ARM SGP site in Central Oklahoma, and the DWD observatory at Lindenberg, Germany. The results show that, as expected, AROME significantly underestimates the variability of vertical velocity at cloud-base compared to observations at their nominal resolution; the standard deviation of vertical velocity in the model is typically 4-6 times smaller than observed, and even more during the winter at Lindenberg. Averaging the observations to the horizontal scale corresponding to the physical grid spacing of AROME (2.5 km) explains 70-80% of the underestimation by the model. Further averaging of the observations in the horizontal is required to match the model values for the standard deviation in vertical velocity. This indicates an effective horizontal resolution for the AROME model of at least 4 times the physically-defined grid spacing. The results illustrate the need for special treatment of sub-grid scale variability of vertical velocities in kilometer-scale atmospheric models, if processes such as aerosol-cloud interactions are to be included in the future.

Winter floods in Britain are connected to atmospheric rivers

Damage from flooding in the winter and fall seasons has been widespread in the United Kingdom (UK) and Western Europe over recent decades. Here we show that winter flood events in the UK are connected to Atmospheric Rivers (ARs), narrow ribbons along which a large flux of moisture is transported from the subtropics to the mid-latitudes. Combining river flow records with rainfall measurements, satellite data and model simulations, we demonstrate that ARs occur simultaneously with the 10 largest winter flood events since 1970 in a range of British river basins, suggesting that ARs are persistently critical in explaining extreme winter flooding in the UK. Understanding the physical processes that determine the persistence of AR events will be of importance in assessing the risk of future flooding over north-western Europe and other mid-latitude regions.

Aspects of the large scale tropical atmospheric circulation

An account is given of a number of recent studies with idealised models whose aim is to further understanding of the large-scale tropical atmospheric circulation. Initial-value integrations with a model with imposed heating are used to discuss aspects of the Asian summer monsoon, including constraints on cross-equatorial flow into the monsoon. The summer descent in the Mediterranean region and on the eastern sides of the summer subtropical anticyclones are seen to be associated with the monsoons to their east. An aqua-planet GCM is used to investigate the relationship between simple SST distributions and tropical convection and circulation. The existence of strong equatorial convection and Hadley cells is found to depend sensitively on the curvature of the meridional profile in SST. Zonally confined SST maxima produce convective maxima centred to the west and suppression of convection elsewhere. Strong equatorial zonal flow changes are found in some experiments and three mechanisms for producing these are investigated in a model with imposed heating. 1.

Atmospheric conservation properties in ERA-Interim

We study the global atmospheric budgets of mass, moisture, energy and angular momentum in the latest reanalysis from the European Centre for Medium-Range Weather Forecasts (ECMWF), ERA-Interim, for the period 1989–2008 and compare with ERA-40. Most of the measures we use indicate that the ERA-Interim reanalysis is superior in quality to ERA-40. In ERA-Interim the standard deviation of the monthly mean global dry mass of 0.7 kg m−2 (0.007%) is slightly worse than in ERA-40, and long time-scale variations in dry mass originate predominately in the surface pressure field. The divergent winds are improved in ERA-Interim: the global standard deviation of the time-averaged dry mass budget residual is 10 kg m−2 day−1 and the quality of the cross-equatorial mass fluxes is improved. The temporal variations in the global evaporation minus precipitation (E − P) are too large but the global moisture budget residual is 0.003 kg m−2 day−1 with a spatial standard deviation of 0.3 kg m−2 day−1. Both the E − P over ocean and P − E over land are about 15% larger than the 1.1 Tg s−1 transport of water from ocean to land. The top of atmosphere (TOA) net energy losses are improved, with a value of 1 W m−2, but the meridional gradient of the TOA net energy flux is smaller than that from the Clouds and the Earth's Radiant Energy System (CERES) data. At the surface the global energy losses are worse, with a value of 7 W m−2. Over land however, the energy loss is only 0.5 W m−2. The downwelling thermal radiation at the surface in ERA-Interim of 341 W m−2 is towards the higher end of previous estimates. The global mass-adjusted energy budget residual is 8 W m−2 with a spatial standard deviation of 11 W m−2, and the mass-adjusted atmospheric energy transport from low to high latitudes (the sum for the two hemispheres) is 9.5 PW

The cloud chamber and CTR Wilson’s legacy to atmospheric science

2011 is the centenary year of the short paper (Wilson,1911) first describing the cloud chamber, the device for visualising high-energy charged particles which earned the Scottish physicist Charles Thomas Rees (‘CTR’) Wilson the 1927 Nobel Prize for physics. His many achievements in atmospheric science, some of which have current relevance, are briefly reviewed here. CTR Wilson’s lifetime of scientific research work was principally in atmospheric electricity at the Cavendish Laboratory, Cambridge; he was Reader in Electrical Meteorology from 1918 and Jacksonian Professor from 1925 to 1935. However, he is immortalised in physics for his invention of the cloud chamber, because of its great significance as an early visualisation tool for particles such as cosmic rays1 (Galison, 1997). Sir Lawrence Bragg summarised its importance:

Electromagnetic atmosphere-plasma coupling: the global atmospheric electric circuit

A description is given of the global atmospheric electric circuit operating between the Earth’s surface and the ionosphere. Attention is drawn to the huge range of horizontal and vertical spatial scales, ranging from 10−9 m to 1012 m, concerned with the many important processes at work. A similarly enormous range of time scales is involved from 10−6 s to 109 s, in the physical effects and different phenomena that need to be considered. The current flowing in the global circuit is generated by disturbed weather such as thunderstorms and electrified rain/shower clouds, mostly occurring over the Earth’s land surface. The profile of electrical conductivity up through the atmosphere, determined mainly by galactic cosmic ray ionization, is a crucial parameter of the circuit. Model simulation results on the variation of the ionospheric potential, ∼250 kV positive with respect to the Earth’s potential, following lightning discharges and sprites are summarized. Experimental results comparing global circuit variations with the neutron rate recorded at Climax, Colorado, are then discussed. Within the return (load) part of the circuit in the fair weather regions remote from the generators, charge layers exist on the upper and lower edges of extensive layer clouds; new experimental evidence for these charge layers is also reviewed. Finally, some directions for future research in the subject are suggested.

Radiative efficiencies for fluorinated esters: indirect global warming potentials of hydrofluoroethers

Density Functional Theory (DFT) has been used with an empirically-derived correction for the wavenumbers of vibrational band positions to predict the infrared spectra of several fluorinated esters (FESs). Radiative efficiencies (REs) were then determined using the method of Pinnock et al. and these were used with atmospheric lifetimes from the literature to determine the direct global warming potentials of FESs. FESs, in particular fluoroalkylacetates, alkylfluoroacetates and fluoroalkylformates, are potential greenhouse gases and their likely long atmospheric lifetimes and relatively large REs, compared to their parent HFEs, make them active contributors to global warming. Here, we use the concept of indirect global warming potential (indirect GWP) to assess the contribution to the warming of several commonly used HFEs emitted from the Earth's surface, explicitly taking into account that these HFEs will be converted into the corresponding FESs in the troposphere. The indirect GWP can be calculated using the radiative efficiencies and lifetimes of the HFE and its degradation FES products. We found that the GWPs of those studied HFEs which have the smallest direct GWP can be increased by 100-1600% when taking account of the cumulative effect due to the secondary FESs formed during HFE atmospheric oxidation. This effect may be particularly important for non-segregated HFEs and some segregated HFEs, which may contribute significantly more to global warming than can be concluded from examination of their direct GWPs.

Elevated atmospheric CO2 changes phosphorus fractions in soils under a short rotation poplar plantation (EuroFACE)

Future high levels of atmospheric carbon dioxide (CO2) may increase biomass production of terrestrial plants and hence plant requirements for soil mineral nutrients to sustain a greater biomass production. Phosphorus (P), an element essential for plant growth, is found in soils both in inorganic and in organic forms. In this work, three genotypes of Populus were grown under ambient and elevated atmospheric CO2 concentrations (FACE) for 5 years. An N fertilisation treatment was added in years 4 and 5 after planting. Using a fractionation scheme, total P was sequentially extracted using H2O, NaOH, HCl and HNO3, and P determined as both molybdate (Mo) reactive and total P. Molybdate-reactive P is defined as mainly inorganic but also some labile organic P which is determined by Vanado-molybdophosphoric acid colorimetric methods. Organic P was also measured to assess all plant available and weatherable P pools. We tested the hypotheses that higher P demand due to increased growth is met by a depletion of easily weatherable soil P pools, and that increased biomass inputs increases the amount of organic P in the soil. The concentration of organic P increased under FACE, but was associated with a decrease in total soil organic matter. The greatest increase in the soil P due to elevated CO2 was found in the HCl-extractable P fraction in the non-fertilised treatment. In the NaOH-extractable fraction the Mo-reactive P increased under FACE, but total P did not differ between ambient and FACE. The increase in both the NaOH- and HCl-extractable fractions was smaller after N addition. The results showed that elevated atmospheric CO2 has a positive effect on soil P availability rather than leading to depletion.We suggest that the increase in the NaOH- and HCl-extractable fractions is biologically driven by organic matter mineralization, weathering and mycorrhizal hyphal turnover.