Australian Journal of Agricultural and Resource Economics最新文献

The quantity of ecosystem services produced from land cannot be readily measured at the site level needed for participation in ecosystem markets, or at a regional level needed to create ecosystem accounts. This paper applies biological scaling principles to develop a quantity metric in which areas of ecosystem (extent) scale allometrically to ecosystem services (a capacity measure) according to a scaling exponent defined by the fractal dimension of ecosystem vegetation. A key conclusion of this paper is that the quantity of ecosystem services arising from ecosystem degradation and conservation activities cannot be estimated unless information about the space-filling properties of vegetation is observed and included in the quantity measurement methodology. The paper demonstrates how remote sensing techniques can be applied to systematically measure ecosystem extent and fractal dimension. It illustrates the economic efficiency and environmental outcome implications of such a quantity metric through comparison with current quantity estimation methods that assume isometric scaling. The quantity metric proposed has potential applications to ecosystem accounting. It enables information currently reported in land accounts to be combined with information reported in ecosystem condition accounts to create ecosystem stock accounts measured in physical units.

The emergence of variable renewable energy (VRE) technologies has created a range of different energy contracting techniques. Within Australia's National Electricity Market (NEM), Run-of-Plant (RoP) Power Purchase Agreements (PPAs) became the most common form of contract with purchasers of wind and solar energy agreeing to pay a fixed price for energy irrespective of when it is produced and, therefore, its actual value to the market. In November 2023, the Commonwealth Government adopted a 32 GW RoP PPA Contract-for-Difference (CfD) underwriting policy that aims to effectively shield the generator from market price risk. This article discusses different contract structures and their impact on participant behaviour during periods of material oversupply and negative prices. We find that embedded solar PV exports into the distribution network, which are not required to dynamically participate in the wholesale market, have increased wholesale energy supply, enabling profit maximising vertically integrated renewable firms to drive prices lower in a manner that partially strands the output of RoP PPA CfD generators with a $0/MWh price floor. A key conclusion from our analysis is that requiring embedded solar PV to effectively participate in the wholesale market appears to be a pre-condition for the efficacy of government-initiated RoP PPA CfDs.

Although crop insurance is widely acknowledged as an effective risk management strategy for safeguarding food security, the causality between crop insurance premium subsidies and cropland abandonment remains inadequately investigated. This study employs a staggered difference-in-differences model to investigate the impact of the Crop Insurance Premium Subsidies Program (CISP) on cropland abandonment using representative household-level panel data from China spanning from 2004 to 2012. Our analysis reveals that crop insurance premium subsidies significantly mitigate cropland abandonment. This relationship is primarily due to the stabilisation of household income growth, which incentivises farmers to augment agricultural inputs and enhance development resilience. Furthermore, our heterogeneous analysis indicates that the effect of the CISP is more pronounced in households located in non-grain-producing regions or areas with lower economic development. These findings underscore the previously overlooked role of crop insurance premium subsidies in preventing cropland abandonment and offer new insights into measures aimed at ensuring food security.

This study evaluates the effect of natural resource dependence on employment quality in Africa, analysing data from 2002 to 2020. Our findings indicate that resource dependence is positively and significantly linked to poor employment quality. Specifically, a one-percentage-point increase in resource rent dependence results in a 0.026-percentage-point rise in vulnerable employment and a 0.282-percentage-point increase in working poverty rates. However, this effect of resource rents on employment quality occurs only when institutional quality is low. Once institutional quality surpasses a certain threshold, this adverse effect is reversed. These results highlight the need for policies that diversify economic structures to reduce African economies' overreliance on natural resource rents and enhance institutional quality.

The remote and iconic Kimberley region, in northern Western Australia, is a contested landscape with growing pressure for different types of land use and development. The region has high biodiversity values and impressive scenery that provide attractive recreation experiences for visitors. We estimate the value of domestic recreation to the region using a travel cost model. Analysis includes two approaches for accounting for multi-destination trips (MDTs) given travel to remote sites are more likely to include these than shorter trips, and four specifications for the value of travel time. We estimate a total consumer surplus of A$110.34 million annually and find that adjusting travel costs for MDTs using stated survey information produces a better fitting model than using revealed travel information. These findings highlight both the importance of estimating recreation values for use in land use planning in the Kimberley and for improving the travel cost method for remote sites where per-trip travel costs are high.

Coral reefs face a critical crisis worldwide because of rising ocean temperature, excessive use of resources and soil erosion. As reefs have great recreational and tourism value, the degradation of their quality may have a significant effect on tourism. This study employs a contingent behaviour approach to estimate the effect of reef extinction on the recreational demand for Kume Island, Okinawa, Japan. We propose a Poisson-inverse Gaussian (PIG) model with correction for on-site sampling issues to derive a more accurate estimate of consumer surplus (CS). The results show that the annual CS per-person trip is 5898 yen (US$ 49.15 in 2015 currency) according to the random-effects PIG model.

Farmers' adoption of commodity futures and options contracts (CFCs) in agriculture shows substantial variation across different regions. Sociodemographic and farm characteristics fail to fully account for these observed differences. Hence, research focussing on understanding the behavioural factors that influence the decision to adopt CFCs is gaining popularity. Although past research has addressed these behavioural factors, a comprehensive synthesis is needed. This study provides a systematic literature review to systematically categorise, taxonomically standardise and summarise behavioural factors influencing farmers' decisions to adopt CFCs. Results are reported via the Preferred Reporting Items for Systematic reviews and Meta-Analyses (PRISMA) scheme. In the systematic literature review, 41 usable studies were identified. The identified behavioural factors were classified into eleven core behavioural factors and grouped into three categories: dispositional, social and cognitive. In addition, a systematic literature map was created, which shows behavioural factors' inclusion frequency and share of being statistically significant in the identified studies. These approaches offer a framework for researchers and practical insights for trainers, policymakers and farmers. The results could be used, for instance, to develop strategies to promote more informed decision among farmers regarding the use of CFCs.

An increasing number of herbicide-resistant weeds challenge farming systems worldwide. Bans on active ingredients in chemical crop protection, which result in fewer weed control options, emphasise the importance of herbicide resistance management in arable farming. Resistance testing allows farmers to get an objective overview of the prevailing herbicide resistances on their land and to adjust their management strategies accordingly. Nevertheless, no study has examined farmers' adoption of herbicide resistance tests. For this purpose, an online survey with 197 German arable farmers was conducted. The adoption decision was investigated by applying the theory of planned behaviour framework. The results suggest that informing farmers of the economic benefits associated with herbicide resistance tests can facilitate widespread adoption. Furthermore, awareness of the availability of herbicide resistance tests needs to be raised through both advertising and crop consultants. Results from this study are relevant for several interest groups as the usage of herbicide resistance tests can help reduce the emergence of new resistance by optimising herbicide use at the farm level.

This study provides a comprehensive understanding of the factors influencing Italian consumers' choice of biodegradable and compostable packaging by using a hybrid framework that integrates the theory of planned behaviour with a discrete choice experiment. By analysing the interplay between internal and external factors and rational consumer evaluations, the research clarifies that consumers' choices can be explained by a combination of economic and psychological models, offering a more accurate representation of the driving forces behind consumer decisions. Applying latent class analysis, we identify consumer segments based on packaging preferences for packaged salad, knowledge of waste disposal rules and the psychological characteristics of a statistically representative sample of Italian consumers. The integration of a comprehensive behavioural model allows for the identification of psychological determinants that influence consumer behaviour, outlining detailed profiles of both early adopters and those most opposed to this technology. This research contributes to the literature on sustainable packaging and offers insights to marketers and policymakers for promoting the adoption of sustainable packaging.

Increasing the area of drought-tolerant native vegetation in urban parks is a potential strategy to adapt to growing water scarcity under climate change. With a case study in Perth, Australia, we undertake benefit–cost analyses to understand the potential impacts of modifying urban park landscape designs away from conventions dominated by watered grass towards alternatives with more native vegetation. Considering the costs of establishing and maintaining alternative designs alone, we find that local governments can save money by reducing the extent of watered grass cover in parks. Incorporating nonmarket benefits into the analyses provides evidence of positive community net benefits from making changes to conventional park designs. We show that an alternative park design featuring a mix of 60% native vegetation and 40% watered grass delivers the highest net benefits for both new park development and retrofits to existing parks. These findings suggest it is time to rethink urban park design norms in Australia to better align landscaping choices with community preferences under a changing climate.