Possible postgraduate projects 2013-14 We have expertise in Agribusiness, Bio-economic Modelling, Environmental Economics, Non Market Valuation, Wine Economics and much more. The projects below are ordered by: Environmental Economics and Natural Resource Management Economics of Non-Renewable Resources and Energy Food Systems and Agribusiness Agricultural Economics and Policies Non Market Valuation Other topics Some projects with external organisations have scholarships or extra research funding available. Please contact the associated supervisor for more information. Environmental Economics and Natural Resource Management Supervisor Topic Level W/Prof David Pannell The economics of biodiversity conservation Honours, PhD (with the Centre of Excellence for Environmental Decisions) Dr. Fiona Gibson and W/Prof David Pannell (with the Centre of Excellence for Environmental Decisions) Ass/Prof Steven Schilizzi The south-west of WA is an internationally recognised biodiversity hotspot. A new research centre is focusing on improving decision making about how biodiversity should be managed and protected. There are many potential projects, including studies of the prioritisation of biodiversity projects, design of effective policies, public attitudes and valuation of biodiversity, and evaluation of projects, for example, for threatened species. Economic analysis of strategies to reduce the impacts of bushfires: near versus far Honours, PhD Research on the Black Saturday fires in VIC found that reducing fuel loads close to buildings was more effective in reducing fire damage, than largescale prescribed burning further away. However, fire management close to buildings may be more expensive per hectare (e.g. due to the need for greater care to prevent escapes), so there is a potential trade-off between the two strategies. This project would build an economic model to weigh up the benefits and costs of strategies implemented at different distances from towns. It would draw on existing research conducted by the Bushfire CRC, and involve consultation with their researchers. The economics of aquaculture. This project can either involve the development of a bio-economic model, or an empirical analysis of the economics of aquaculture. Students can focus on an aquaculture of their interest, be it in Australia or elsewhere. Multispecies aquaculture could also be investigated. An honours project would build on pre-existing work and use existing models (e.g. BRAVO model) 1 Honours, Masters School of Agricultural & Resource Economics Possible student research projects 2013-2014 Ass/Prof Steven Schilizzi Equity-efficiency tradeoffs in environmental policy. Dr. Abbie Rogers and Prof Michael Burton Economics of marine biodiversity (with NERP Marine) Asst/Prof Marit Kragt (with the Centre of Excellence for Environmental Deciscions) Ass/Prof Ram Pandit and Dr Maksym Polyakov Management decisions about natural resource use, environmental policies, funding of projects, prioritization of funding, etc. often focus on economic efficiency objectives. Such a focus on “the biggest bang for the buck” often conflicts with equity or fairness concerns. There are Masters of PhD projects that could investigate equity concerns in different contexts, such as water restrictions, biodiversity funding, or others, using survey and/or experimental techniques. Australia has a wealth of marine biodiversity, and a wealth of marine biodiversity problems. A new research hub is investigating a wide variety of these problems, including work on their economic aspects. Economic studies are looking at valuing environmental impacts, prioritising investments, and the design of effective policies. We welcome students for discussions about the research options to identify a project that will be inspiring and useful. Masters, PhD Honours, Masters, PhD The use of modelling tools for NRM decision support Honours, Masters, A lot of research time and money is spent on developing sophisticated PhD computer models to inform natural resource management (NRM) decisions. But are such ‘decision support tools’ actually used by NRM policy makers? This project will involve an analysis of the modelling tools that are used by NRM decision makers at State and local level (based on information gained through qualitative interviews). Urban forestry Trees in urban areas provide a wide range of benefits to residents, including aesthetic beauty, wildlife habitat, air quality, shade, etc. Most of local councils have developed and adopted tree management guidelines. But it is unclear how costly it is to manage mature trees in public places (e.g. streets or parks). Understanding how people value green space and public support towards urban forestry programs could help local councils to design or implement more efficient programs. Potential projects within this topic include: Western suburbs greening plan and residents’ attitude towards maintaining trees in residential property Public attitude towards urban trees and supporting urban forest programs Valuing shades of green in Perth Metropolitan Area Tree management guidelines as public policy tools among city councils in Perth Valuing trees and green spaces in a regional town 2 Honours, Masters School of Agricultural & Resource Economics Possible student research projects 2013-2014 Asst/Prof Ram Pandit and Dr. Maksym Polyakov Recent trend in plantation estate and forest products trade in WA Ass/Prof Ram Pandit and Dr Maksym Polyakov Understanding the effect of environmental attributes on property value: a real estate agent’s perspective Dr. Morteza Chalak Optimal strategies for biodiversity conservation. Dr. Morteza Chalak Management of invasive species. Assoc/Prof Atakelty Hailu Recreation fisheries and marine resources management. Honours Forest plantations on farm lands provide environmental and economic benefits to farmers and local communities. Some of the economic products from plantations are pulp logs, woodchips, or swan lumber, for export markets in China and Japan. This project will explore trends in plantation estate and forest product trade in WA. You will use case studies, interviews, and literature reviews to answer these questions. Honours, Masters Property value depends on many factors including environmental attributes in its vicinity. The value of these attributes can be inferred using hedonic pricing method indirectly, but how these values are aligned with the way real estate agents consider these attributes in their property valuation is unclear. This project will investigate the key environmental attributes used in property valuation by real estate agents and the magnitude of the influence of these attributes on property value in the context of Perth Metropolitan area. PhD You will identify priority areas in Australia for two alternative biodiversity conservation actions: buying land and renting land. Government can buy or rent a land to enhance biodiversity and the question is which strategy is more suitable for particular circumstances. The PhD thesis will show how to be efficient in achieving conservation goals by clearly specifying our conservation objective and parameterising the problem with economic data that reflects this objective This is a suitable topic for both PhD or Honour projects. The students can choose what invasive species they would like to study – for example controlling pest plants or animals. Standard frameworks are available to address these issues efficiently. In this project, you will use or develop a random utility model (RUM) of recreational site choice, to evaluate how different management strategies could affect fish stocks and economic welfare. By combining the research with marine environmental models, one would be able to evaluate the impact of strategies on ecological outcomes and how these affect recreational choice and economic welfare. Such work would provide useful information on tradeoffs among multiple economic and environmental outcomes 3 Honours, Masters, PhD Honours, Masters, PhD School of Agricultural & Resource Economics Dr. Morteza Chalak Possible student research projects 2013-2014 Optimal land-use change to increase water quality, quantity and PhD biodiversity outcomes. This research will investigate strategic land-use changes to attain future water quality, quantity and biodiversity. Hydrologic data are available to show land use change (e.g. reforestation) can affect water quality and quantity in different parts of the catchment. Land use changes also affects biodiversity, and have different costs depending on the land value and geographic location. This project will assess the least cost land use change options that can enhance water quality, quantity and biodiversity in the Warren catchment in WA. Economics of Non-Renewable Resources and Energy Supervisor Topic Level Dr Maksym Polyakov and Ass/Prof Ram Pandit A Hedonic Analysis of Wind Farm Honours, Masters Asst/Prof James Fogarty Royalties for Regions: The buck stops where? Asst/Prof James Fogarty Demand for landfill in Western Australia. Prof Ben White The economics of the new Department of Mines and Petroleum Fidelity Fund. Wind power is one of the fastest growing renewable sources for electricity generation. While it has a number of advantages over fossil fuels energy sources, there remain significant obstacles to the large-scale development of wind power generation facilities, including resistance of local residents. This project will investigate whether development of wind farm in Waubra, VIC impacted local residents resulting in loss of property values. The Royalties for Regions funding program represents a radical change in government funding in Western Australia. This project will review the nature and results of the program. The land fill levy was recently raised substantially. In theory, this should have encouraged greater recycling of material so that it does not end up in land fill. This project will investigate the effectiveness of current State government policy regarding land fill charges and support for recycling. DMP is planning to introduce an environmental charge on mines to cover rehabilitation costs. This will replace bonds, but it is unclear how it will affect different sectors. Project relates to level of charges and their incentive effect. Ass/Prof Steven Schilizzi Using economic experiments for studying resource use or environmental policies. A study focused on using economic lab and/or field experiments to investigate problems of natural resource use, allocations, restrictions, or pricing, as well as the impacts on the efficiency of resource use or conservation of different equity principles. An Honours project can be devised by building on previous work. 4 Honours, Masters Honours, Masters Honours, Masters, PhD Masters, PhD School of Agricultural & Resource Economics Possible student research projects 2013-2014 Ass/Prof Steven Schilizzi Understanding human behaviour with respect to energy use and conservation. Ass/Prof Steven Schilizzi Economics of renewable energies. Asst/Prof Chunbo Ma and Prof Michael Burton Should We Have More Underground Power Lines? Asst/Prof Chunbo Ma and Asst/Prof James Fogarty Modeling Petro Prices in Perth. Asst/Prof Chunbo Ma and Prof Michael Burton Show and Yell: the Conspicuous Conservation for Solar Panels. Asst/Prof Chunbo Ma and Asst/Prof Ram Pandit Solar Home Price Premium in the Australian Market This refers to survey-based and/or simple economic experiments investigating, for a given level (household, local, national or international) such issues as: how do preferences vary, across people and situations, for different energy uses, for different energy sources, for different pricing or subsidy/tax systems, for different conservation objectives, etc This can be a survey-based or modelling based study regarding any of the economic viability of, or policies on, renewable energy sources. Students could investigate the effect of taxes, buyback rates, cost-sharing and subsidies. In particular, comparisons between renewable and non-renewable options can be examined. Honours, Masters, PhD Honours, Masters Honours In 2012, a mini-tornado and violent storms hit Perth, which left many homes without electricity. Underground power lines have been proposed to improve the reliability of current power systems and cope with extreme weather events. Some people also prefer underground lines for aesthetic reasons. However, the costs of building underground lines are much higher, and the duration of an average outage is longer due to longer repair time. The project examines consumer preferences for different power systems. Honours Since 2001, retail petrol prices are set 24 hours in advance and remain fixed for that period. Lowest prices at service stations by area and postcode are publicly available on the internet through fuelwatch.com.au. There is now a very rich data set available of daily petrol prices, by petrol station, for all of WA. This project involves an econometric analysis of retail petrol prices (they may exhibit cycling behavior, spatial competition, brand differentiation, etc) combined with GIS modelling. Honours People sometimes go out of their way to show their engagement in “green” activities. Consumers may buy an expensive Toyota Prius, just to signal their type as environmentally friendly. While there are studies looking at the “Prius Effect”; little work has been done for solar panels. Homeowners sometimes install solar panels on the shaded sides of their house, just to ensure that their costly investments are visible from the street. This project aims to investigate this using surveys and econometric analysis. The residential solar home market continues to grow, but there is little information about how much more value solar panels add to your property (the market capitalization effect). A recent study found that solar panels are capitalized at roughly a 3.5% premium in the California market. It would be interesting to see how solar panels are capitalized in Australia. This project will use hedonic pricing to find out. 5 Honours School of Agricultural & Resource Economics Possible student research projects 2013-2014 Asst/Prof Chunbo Ma and Prof Michael Burton Leafy Trees or Consistent Power Supply? Asst/Prof Chunbo Ma Efficiency/Productivity Analysis. Asst/Prof James Fogarty and Prof Ben White Economics of water-sensitive cities. (with the CRC Water Sensitive Cities) Honours If trees are regularly pruned, then there would be less risk of trees knocking down power lines under extreme weather conditions. More frequent pruning may reduce the risk but would mean a higher council rate and less leafy suburbs. The project will look at the costs of tree pruning, its impact on power supply risks, and the trade-offs with local aesthetics. This project could be jointly performed with the Project “Underground Power Lines vs. Overhead Power Lines” using non-market valuation. Honours The project will examine the performance of power plants or any other industries where data is available. PhD Many new "water-sensitive" systems are being used or explored in Australian (possibly cities. These include new technologies for water recycling, use of wetlands for Honours) filtering waste water, use of rainwater tanks, etc. Some of these practices have other spin-off benefits for urban liveability (e.g. wetlands provide aesthetic benefits). There are different projects possible around the economics of water-sensitive cities, including cost-benefit analyses of watersensitive practices, and non-market valuation of the intangible benefits they generate. Food Systems and Agribusiness Supervisor Topic Level Assoc/Prof Atakelty Hailu Productivity and efficiency analysis. Asst/Prof James Fogarty Weather and Fine Wine: Cabernet Sauvignon for the Yarra Valley and Margaret River. Honours, Masters, This project will compare the performance of different decision units (firms, PhD farms, etc.) across space and/or over time, to get information about the impact of management and policies. The focus industry could be utilities (e.g. water), agriculture, manufacturing or service industries. The analysis could be at a local or aggregate level (State or National). You will use non-parametric methods such as data envelopment analysis (DEA), stochastic frontier analysis (SFA), or multi-output multi-input parametric methods such as radial (input or output) and directional distance functions. Environmental effects can also be incorporated in this analysis. Honours This project seeks to explain observed wine quality through analysis of weather variables during the grape growing season. Asst/Prof James Fogarty The Demand for Meat: a meta-analysis approach. The consumer response to price changes in the market for meat has been studied extensively. This project involves discussing the existing literature, and then undertaking a quantitative analysis of the existing literature. 6 Honours, Masters School of Agricultural & Resource Economics Possible student research projects 2013-2014 Asst/Prof James Fogarty Growers Markets: What do they sell, and who benefits? Asst/Prof James Fogarty Alcohol taxation. Asst/Prof James Fogarty Understanding the Alcohol market. Asst/Prof James Fogarty Wine quality and price: a quantitative survey of the literature. Prof Ross Kingwell An economic assessment of the Harrington Seed Destructor. (with DAFFWA) Asst/Prof Marit Kragt (with CSIRO’s Roger Lawes) Honours This project will document the history of growers markets in metropolitan Western Australia; detail the produce is sold and the price of produce relative to other outlets; and investigate consumer motivations. This project will explore the implications of different approaches to taxing alcoholic beverages. A particular focus will be trying to balance the benefits of a tax in terms of lower externality costs against the welfare losses taxes impose on non-abusive consumption. Opinion is divided regarding the appropriate theoretical framework to use for consumer research in the alcohol market. The project involves data collection and analysis to test the predictions of different theories on the way the alcohol market operates. A number of papers have been published that investigate the price-quality trade-off in the wine market. This project involves discussing the existing literature, and then undertaking a quantitative analysis of the existing literature. The Harrington Seed Destructor (HSD) is a machine that takes the offload from a grain harvester and mechanically injures weed seeds imbedded in this harvested material, thereby making the seeds infertile. So the HSD is useful for reducing weed problems, especially where weeds are resistant to key herbicides. Your task, under guidance, is to assess the economic worth of the HSD. Farming – it’s not all risky business Modern farming systems are inherently risky and farmers must often trade off risk with reward. For example, the most profitable crop sequences may also require the most inputs and generate substantial disease or weed problems. Alternatively, the farmer can explore less risky crop sequences that control weeds and diseases, but generate less profit. Honours, Masters Honours, Masters Honours, Masters Honours, Masters Honours, Masters In this project you would use the Land Use Sequence Optimiser to explore risk and uncertainty of different crop options for Western Australian farmers given variable seasons and variable prices. Asst/Prof Marit Kragt (with CSIRO’s Roger Lawes) Farmer’s adoption of new technologies New farm technologies that use advanced software and integrated decision support tools can deliver substantial gains to the farmer. Other farm decisions (e.g. a new variety) may deliver relatively easy but small incremental gains. This project will use a choice experiment survey to investigate what farmers would be prepared to pay to get a small but almost guaranteed increase in production, versus a technology that may assist with decision making but has uncertain payoffs, versus a technology that could generate long term gains to the industry but has high risks of failure. 7 Honours, Masters, PhD School of Agricultural & Resource Economics Possible student research projects 2013-2014 Agricultural Economics and Policies Supervisor Asst/Prof Marit Kragt (with the CSIRO) Prof Ben White (with the CRC Plant Biodiversity) Prof Ross Kingwell (with DAFFWA) Prof Ross Kingwell (with DAFFWA) Prof Ross Kingwell (with DAFFWA) Topic Level Meta-analysis of carbon sequestration in agriculture. With the introduction of the Carbon Farming Initiative (CFI), rural landholders can get paid for climate change mitigation. This study will involve a metaanalysis of the carbon storage potential of different farming activities (e.g. forestry, native scrubs, biochar etc). Such work is important to enable an evaluation of how effective different mitigation policies are. There is an opportunity to use CSIRO’s APSIM model to generate your own data of carbon sequestration potential for different agri-regions in Australia. Honours, Masters Returns to cereal breeding for pest resistance. Honours, Masters, Is pre-emptive cereal breeding (in anticipation of the arrival of Russian Wheat PhD aphid and the like) a good investment? A flow-of-funds model for WA broadacre agriculture. Honours Drawing on a longitudinal and spatial set of farm data develop a flow-of-funds model for WA broadacre farming. This model shows how monies flow to and from farm businesses. Your task will be to construct, under guidance, the model for different time periods to show financial and structural change in the broadacre sector and to discuss the implications for farm management and key stakeholders in WA agriculture. The logistics and value of spatial diversification for broadacre farming. Drawing on a longitudinal and spatial set of farm data develop farm business models that explore how logistics advantages and disadvantages, when combined with spatial diversification, can make farming more or less financially attractive. Your task will be to construct, under guidance, various models of financial diversification to show the advantages and disadvantages of various types of spatial diversification. Is such ‘spreading your risk’ necessarily always useful? Grain profitability maps for WA shires. Each year as the Department of Agriculture and Food produces maps for WA that rank shires’ grain yields to show how sound or poor a season is relative to previous seasons. Your task will be to use historical cost and price data to convert maps into profitability maps and show how price and cost effects can lead to very different shire rankings than those suggested by yield comparisons. 8 Honours, Masters Honours School of Agricultural & Resource Economics Possible student research projects 2013-2014 Asst/Prof Amin Mugera Adoption of variation management in the Northern agricultural region of WA (with the Liebe Growers Group) Variation management a strategy is the use of map based information and input-control technologies to efficiently match agronomy with paddock variability. This is one of two projects with a growers’ group, to measure the adoption levels of farm practices around soil health and variation management. Three years of survey data, 2009 to 2011, for 61 farms is available for economic and statistical analysis. You will use binary logit regression models to determine the impact of land area, proportion of crop sown, rainfall and farming experience on adoption decisions. Asst/Prof Amin Mugera Adoption of soil management strategies in the Northern agricultural region of WA (with the Liebe Growers Group) Soil management strategies are proactive management practices to address deficiency in physical, chemical and biological properties of soil. This is one of two projects with a growers’ group, to measure the adoption levels of farm practices around soil health and variation management. Three years of survey data, 2009 to 2011, for 61 farms is available for economic and statistical analysis. You will use binary logit regression models to determine the impact of land area, proportion of crop sown, rainfall and farming experience on adoption decisions. Assoc/Prof Atakelty Hailu Agent-based modelling of land use policy effects. Honours, Masters Honours, Masters PhD In this project, you will combine whole-farm economic modelling and hydrologic models (e.g. SWAT) to evaluate land use change policies in an integrated way. This allows assessments of both economic and environmental outcomes. You will need to collect data for a study catchment; calibrate economic and hydrological models; and identify a set of regulatory and/or incentive-based policy instruments for land use change. Policies evaluated could be aiming at water quality, dryland salinity, carbon sequestration, etc. Non Market Valuation Supervisor Dr Fiona Gibson, W/Prof David Pannell, Prof Michael Burton and Dr Trent Penman (with University of Wollongong) Topic Level Preparing private property for wildfire – what are residents willing to pay? Wildfires present a significant risk to people and property. While land managers attempt to minimise the risk of fires reaching property, they cannot remove this risk. Residents living in fire prone areas are encouraged to prepare their property to reduce the risk of loss from wildfires. However this comes at both a time and a financial cost. The aim of this project is to determine the community’s willingness to pay to prepare private property for wildfire. The student will need to determine the costs of preparation, and will conduct a non-market valuation survey to determine how much time and money residents are willing to spend annually to prepare their house for wildfire. The case study can be conducted in either metropolitan WA, or in NSW. 9 Honours School of Agricultural & Resource Economics Possible student research projects 2013-2014 Dr. Fiona Gibson and Dr. Abbie Rogers Turfed out: community preferences for using synthetic versus natural turf at recreational facilities in WA Asst/Prof Marit Kragt Environmental valuation of WA threatened species. (with DEC) Asst/Prof Marit Kragt and Prof Michael Burton (with the National Trust) Honours Lush green turf all year round is an important requirement for many community sporting activities. To decrease water usage, local Councils can use synthetic turn on sporting fields and road verges. What are the economic implications from replacing natural turf with synthetic turf? In this project you will use non-market valuation to estimate the social costs and benefits of switching to synthetic turf. These values will provide information to local Councils on the viability of using synthetic turf. The WA Department of Environment and Conservation is keen to get more information about the intangible values that Western Australians place on threatened species: Red-tailed Black Cockatoo; Western Ringtail Possum; Southern Brown Bandicoot. They need this information to devise (for example) the right amounts of biodiversity offsets in mining. This research will involve a non-market valuation study and discrete choice surveys. Are people prepared to pay to preserve heritage buildings? People like living in suburbs with attractive buildings, but one of the most contentious things a local council can do is put restrictions on how people can modify their houses. This project will use non-market valuation techniques to see how much people are prepared to pay to protect the architectural heritage of Perth, and what types of heritage they are prepared to pay to protect. Honours, Masters, PhD Honours, Masters Other Supervisor Topic Level Asst/Prof James Fogarty The price of love: implicit prices for diamond attributes Asst/Prof Chunbo Ma and Prof Michael Burton Environmental Conservation in Hotels. Honours This project will discuss the market for diamonds, from production to retail sale, and determine the factors that determine the final retail price of diamonds. More and more hotels use environmental programs that urge travellers to reuse their towels. Different social norms can be used to motivate conservation behavior in hotels. This project will look at: (1) how travellers’ behaviour varies in different levels of hotels (e.g. stars levels); (2) how behaviour differs for trips with different purposes (e.g. business trip vs. tourism trip); (3) how behaviour differs when the hotel asks travellers in different ways (e.g. conserving energy vs. conserving environment). 10 Honours School of Agricultural & Resource Economics Prof Michael Burton Possible student research projects 2013-2014 Do normal people think about complex systems in the same way as scientists? Honours This project would involve conducting a survey of students, and then replicating it with FNAS academics, to test if previous published results that investigate how people think about complex systems are robust. Prof Michael Burton Happiness research for the environment. Honours, Masters, There has been an explosion of research in what has become known as PhD ‘happiness’ studies. This is centred around the idea that you can get useful estimates of peoples wellbeing (utility/happiness) from direct questions. This project would look at ways that this approach can be applied to the valuation of the environment. Asst/Prof Marit Kragt Interdisciplinary research by environmental economists Assoc/Prof Atakelty Hailu Auction design Ass/Prof Steven Schilizzi Understanding human behaviour with respect to climate change policies. Honours Inspired by a recent paper I read about interdisciplinary research, I thought this could be a neat Honours topic. Interdisciplinary research is fundamental to support useful applied economic research (like environmental economics). This study would involve a survey of (publishing) environmental economists into their interdisciplinary work and their views on how well interdisciplinary efforts are rewarded within the academic system. Honours, Masters, Auctions are now widely used in environmental management. This project will PhD focus on the design of flexible auctions – such as multi-unit or combinatorial auctions. The research aims to evaluate different pricing mechanisms and how these would work for different levels of competition, bidder heterogeneity, etc. You will use agent-based to simulate auction performance. The target application could be water entitlements, conservation services or other assets. Honours, Masters, This refers to survey-based and/or simple economic experiments investigating, PhD for a given level (local, national or international) such issues as: how do preferences vary, across people and situations, for different allocation rules, for different allocation processes, for different distributional outcomes, for inter-temporal tradeoffs, etc. 11 School of Agricultural & Resource Economics Asst/Prof Ram Pandit Possible student research projects 2013-2014 Environmental Economics projects in developing countries. Several research projects are possible with a focus on South or East Asian countries. You may need to visit selected country for field work. Example topics include: * Livelihood impacts of ‘Reduced Emissions from Deforestation and Forest Degradation’ mechanism in developing country context (either Indonesia or Vietnam or Nepal) * Economic feasibility of adopting 'carbon focused forest management within community-based forest management in developing countries (either Indonesia or Vietnam or Nepal) * Payment for ecosystem services between up-stream and down-steam communities in forested watersheds in Nepal 12 PhD