Presumed Guilty: An Economics Analysis of the Efficiency of Environmental Bonds for the WA Mining Sector. Environmental bonds have two important economic effects. First they give an incentive for mining firms to manage environmental damage and second they prevent excessive costs falling on the regulator in the case of bankruptcy. The aim of this project is to assess if this policy can be redesigned to increase its economic efficiency.
Designing for uncertainty in conservation auctions. Economic theory and case study evidence show that tenders or auctions are more efficient than grant mechanisms for encouraging landholders to produce environmental outcomes on private land. These studies have ignored the effects of uncertainty of both bidders and administrators about factors such as landholder participation and the level of environmental benefits that will be delivered. This project will test whether distributing environmental ....Designing for uncertainty in conservation auctions. Economic theory and case study evidence show that tenders or auctions are more efficient than grant mechanisms for encouraging landholders to produce environmental outcomes on private land. These studies have ignored the effects of uncertainty of both bidders and administrators about factors such as landholder participation and the level of environmental benefits that will be delivered. This project will test whether distributing environmental funds via tenders is still efficient when uncertainty about various important factors is considered. Results from this research are expected to inform the cost effective design of systems to pay landholders for the provision of environmental benefits even when there is high uncertainty.Read moreRead less
Benefits and costs of non-market valuation for environmental management. Benefits from environmental policies are often unpriced “non-market values” (NMVs). Environmental agencies struggle to know how best to measure these relatively intangible benefits, but doing so is important to ensure value for money from public investments. Environmental economists have developed and applied a wide range of methods for estimating NMVs. The methods vary in their comprehensiveness, accuracy and cost. Yet no ....Benefits and costs of non-market valuation for environmental management. Benefits from environmental policies are often unpriced “non-market values” (NMVs). Environmental agencies struggle to know how best to measure these relatively intangible benefits, but doing so is important to ensure value for money from public investments. Environmental economists have developed and applied a wide range of methods for estimating NMVs. The methods vary in their comprehensiveness, accuracy and cost. Yet no rigorous tool is available to assess (a) which NMV method is best to implement, accounting for its cost and its potential to improve decisions, or (b) whether any NMV method improves decisions enough to warrant its cost. In creating such a tool, this project will deliver a key breakthrough in environmental economics.Read moreRead less
Storage and the Hotelling Valuation Principle: Understanding the Dynamics of the Oil Industry. Understanding the economics of the oil market is important for understanding the shift toward smaller, more fuel-efficient motor vehicles and less fuel-intensive farming techniques. A better understanding of fundamental oil price processes will lead to more accurate oil price forecasting and hence more accurate pricing of oil derivatives (options, futures and swaps) and improved risk management (e.g. ....Storage and the Hotelling Valuation Principle: Understanding the Dynamics of the Oil Industry. Understanding the economics of the oil market is important for understanding the shift toward smaller, more fuel-efficient motor vehicles and less fuel-intensive farming techniques. A better understanding of fundamental oil price processes will lead to more accurate oil price forecasting and hence more accurate pricing of oil derivatives (options, futures and swaps) and improved risk management (e.g. airlines hedging the cost of their jet fuel needs). Read moreRead less
Redesigning Landcare policy to better coordinate across landholders. This project aims to study how landscape-sensitive economic incentives and social norms can be leveraged to enhance the short- and long-term effectiveness of conservation programs. It will yield new knowledge for innovative designs in conservation contracting that is urgently needed to address worsening environmental threats in Australia and worldwide. In collaboration with Nobel laureate Vernon Smith’s team, new methods and pr ....Redesigning Landcare policy to better coordinate across landholders. This project aims to study how landscape-sensitive economic incentives and social norms can be leveraged to enhance the short- and long-term effectiveness of conservation programs. It will yield new knowledge for innovative designs in conservation contracting that is urgently needed to address worsening environmental threats in Australia and worldwide. In collaboration with Nobel laureate Vernon Smith’s team, new methods and protocols will improve our ability to generate better data and better understand how social and incentive mechanisms can constructively interact to facilitate collaborative environmental action. Results will help make the achievement of environmental targets and the use of public funds more cost-effective. Read moreRead less
Energy efficiency, economic growth and the environment in China. This project will provide Australian government, business and the broader community with comprehensive knowledge about China's growth which is closely linked to the Australian resources boom and hence economic growth in recent years. It will give Australia a leading edge in understanding China within the context of sustainable development and provide an assessment of the impact that China's continued growth may have on the world in ....Energy efficiency, economic growth and the environment in China. This project will provide Australian government, business and the broader community with comprehensive knowledge about China's growth which is closely linked to the Australian resources boom and hence economic growth in recent years. It will give Australia a leading edge in understanding China within the context of sustainable development and provide an assessment of the impact that China's continued growth may have on the world in general and on the Australian economy in particular. The insights on China's energy and environmental sectors gained through this project will be vital for Australian businesses attempting to tap into the Chinese market, and Sino-Australian cooperation on climate change.Read moreRead less
Designing better soil quality indexes to improve land and environmental management. This project will develop sound methods for capturing diverse soil quality attributes in summary soil quality indexes to facilitate wiser land and environmental management. The project will generate benefits through: 1) improvements in the sustainability of our agricultural industries by providing better tools for matching soils with crops and for more efficient chemical input use on farms, 3) improvements in env ....Designing better soil quality indexes to improve land and environmental management. This project will develop sound methods for capturing diverse soil quality attributes in summary soil quality indexes to facilitate wiser land and environmental management. The project will generate benefits through: 1) improvements in the sustainability of our agricultural industries by providing better tools for matching soils with crops and for more efficient chemical input use on farms, 3) improvements in environmental water quality through reductions in nonpoint source pollution from agriculture, 3) tools for monitoring the recovery of degraded agricultural or mining soil resources, and 4) better conservation contract design.Read moreRead less
Designing Better Landowner Contracts to Protect Australia's Environment. There will be two main benefits from this project. First a reduction in the cost of protecting the environment and second, a greater awareness amongst regulators of the determinants of compliance costs and their variability amongst landowners. By making environmental contracts more efficient, this project will contribute towards making Australian agriculture more sustainable in terms of protecting biodiversity, conserving ....Designing Better Landowner Contracts to Protect Australia's Environment. There will be two main benefits from this project. First a reduction in the cost of protecting the environment and second, a greater awareness amongst regulators of the determinants of compliance costs and their variability amongst landowners. By making environmental contracts more efficient, this project will contribute towards making Australian agriculture more sustainable in terms of protecting biodiversity, conserving water and reducing the rate of soil loss.Read moreRead less
Energy transitions: past, present and future. Uncertainty about the costs of transitioning to a low carbon economy in Australia and other countries will be reduced by improving our knowledge of the costs of reducing fossil fuel use and the role of energy in economic growth. Energy economics research capabilities in Australia will be enhanced.
Labour Market and Health Dynamics of Australia's Front Line Workers. Australia’s front line workers are there in times of greatest need, but face significant health risks. These risks are expected to increase with the predicted growth in natural disasters, and these concerns have been heightened by the COVID-19 pandemic. This project will apply econometric methods to population-based administrative data to study (1) the determinants and patterns of recruitment and retention into these occupation ....Labour Market and Health Dynamics of Australia's Front Line Workers. Australia’s front line workers are there in times of greatest need, but face significant health risks. These risks are expected to increase with the predicted growth in natural disasters, and these concerns have been heightened by the COVID-19 pandemic. This project will apply econometric methods to population-based administrative data to study (1) the determinants and patterns of recruitment and retention into these occupations, (2) how labour market and health outcomes are impacted by exposure to major disasters; and (3) the impact of the pandemic on labour market and health outcomes. The project will provide insights that can inform policies designed to protect the health of front line workers and meet future workforce demands.Read moreRead less