Archive for the ‘Economics’ Category
What is public good research?
When recently asked at a meeting with CSIRO scientists what he thought public good research was, their CEO Larry Marshall said:
“Anything that’s good for the public”
He then went on to say:
“Government policy, frankly, determines public good. That’s their decision. When they fund renewable energy, environmental science, education, health care, that’s a fundamental policy choice. It’s completely separate to us. National objectives, national challenges, is that not, a realistic measure of public good?”
The other Marshall Plan
Part of the debate about CSIRO funding and priorities, and public good research (PGR), is what public good research means. This confusion in part comes from different world views, but it also has specific economic and less specific philosophical meanings that need to be teased out and understood. Otherwise PGR will be a political football, subject to the politics of the day.
In Australia, we’ve already seen that happen in a number of areas of public good, such as climate change, the arts and the humanities, to name a few. Because they are not directly injecting cash into the economy (or are perceived slow down other areas of income generation), these areas are held to be uneconomic and a burden to the public purse. Read the rest of this entry »
Save CSIRO: the value of public good research
Yesterday was hug a climate scientist day. Dear readers, you missed out if you didn’t get to one, because there were a whole bunch of climate scientists at the State Library of Victoria being very huggable. And other friends of CSIRO.
The Friends of CSIRO had a forum at the State Library of Victoria, moderated by Kate Auty. Senator Kim Carr spoke and announced that if elected, Labor would restore $250 million to the CSIRO budget, reversing the cuts currently underway. Adam Bandt science spokesperson from the Greens said they would would go further, investing slightly over $300 million, and boosting funds for R&D generally. Both were very welcome statements. Read the rest of this entry »
Is the Chief Scientist’s recent science & economy report really pseudo-science?
Fairfax journo Gareth Hutchens has an article in today’s Herald with the headline:
Australia’s scientists forced to rely on pseudo-science to be taken seriously in Canberra
Well, it is April the first.
Hutchens has a go at the recent Chief Scientist and Australian Academy report: The importance of advanced physical and mathematical sciences to the Australian economy (pdf). They engaged the Centre of International Economics to conduct an economic analysis that used the MMRF-NRA computable general equilibrium model to estimate the impacts of a number of input assumptions on the contribution of the physical and mathematical sciences to the economy. The report estimates that the direct contribution of the advanced physical and mathematical sciences is
equal to 11% of the Australian economy (about $145 billion per year). Along with the direct contribution, the report estimates additional and flow-on benefits of another 11%, bringing total benefits to just over 22% (around $292 billion per year).
I felt I had to defend the report, which is not perfect but necessary (I think I also agree with the headline). In doing so I find myself in defence of CGE economic models (which I can’t quite believe I’m doing). Basically, Hutchens reckons that by engaging with an economic consultancy and an economic model, the Chief Scientist and Australian Academy of Science have prostituted themselves (my words) to the same economic lobbying that everyone else in Canberra uses to argue for government support. Here’s my response posted to the comments of the article (slightly edited – doesn’t seem to have made it through, either):
New IPCC report: busting myths, both scientific and economic
New IPCC report: busting myths, both scientific and economic
By Roger Jones, Victoria University
The headline statements of the Intergovernmental Panel on Climate Change’s new Synthesis Report – unequivocal climate change, almost certainly driven largely by humans, and an urgent need to cut emissions – won’t come as any surprise to people who paid attention to the three larger reports the IPCC has released over the past 14 months.
But reading the full synthesis report, as opposed to the shorter Summary for Policymakers (SPM), shows that while the facts haven’t changed, the IPCC has subtly altered its approach to how it presents this information. Instead of dealing largely in forecasts and responses, as in previous syntheses, it now frames the climate problem squarely in terms of risk management.
Not everything of importance in the full synthesis report made it into the SPM. The language in the SPM is also weaker, particularly about the nature of irreversible risks and about threats to food security. The full report contains valuable pointers for managing climate risks and the benefits of acting, so should be preferred for decision-making purposes.
The report is also great for debunking some of the persistent myths about climate change, both scientific and economic. But, unfortunately given the urgent need for new economic policy to cut carbon, it’s stronger on the former than the latter. Read the rest of this entry »
NCCARF Climate Adaptation Conference 2013
The NCCARF (National Climate Change Adaptation Research Facility) Climate Adaptation Conference climate adaptation knowledge + partnerships is on from June 25-27 in Sydney. I’m attending to present the results of our recently completed project Valuing Adaptation under Rapid Change. There are many researchers and practitioners of climate adaptation from Australia and overseas here, but there is also a sense of things winding down, because NCCARF finishes up at the end of June with no obvious Commonwealth footprint in climate adaptation beyond that date.
Throw in the recent efforts by some state governments to open up for business and cut green tape, there is a genuine uncertainty about the future of research that aims to improve the three pillars of sustainable development: economy, environment and society, over long time scales. Ahh yes, but I hear you say, research is like policy, it doesn’t only need to be enacted (i.e., published in the peer reviewed literature), it needs to be enabled and implemented. And that’s something that research has not always been able to do. NCCARF has managed to do some of this, but with mixed success.
Climate Vulnerability Monitor 2012
The Climate Vulnerability Monitor 2nd Edition, released today, reveals that climate change has already held back global development and inaction is a leading global cause of death. Harm is most acute for poor and vulnerable groups but no country is spared either the costs of inaction or the benefits of an alternative path.
Key findings include estimates that carbon-intensive economies and associated climate change are responsible for five million deaths a year, 90 per cent of them related to air pollution, according to an Agence France-Presse report.
“Failure to act on climate change already costs the world economy 1.6 per cent of global GDP amounting to $US1.2 trillion ($A1.16 trillion) in forgone prosperity a year,” said the report, produced by the DARA research centre and released at the Asia Society in New York.
In addition, “rapidly escalating temperatures and carbon-related pollution will double costs to 3.2 per cent of world GDP by 2030.”
According to the report, “unprecedented harm” is being inflicted on humanity.
However, tackling climate change’s causes would bring “significant economic benefits for world, major economies and poor nations alike,” the report said.
The report was published by DARA, and compiled by the World Vulnerability Forum. 45 Mb download of the entire report is here and the page where parts of the report can be downloaded is here – data can be downloaded as well.
It contains complex information and graphics, so is not easy to decipher. Hopefully, I’ll have time to digest the main points and summarise them here. Hat-tip Rob Gell.
Industry Roundtable Context Paper
The recent VCCCAR Annual Forum featured an industry roundtable breakfast, chaired by Anne Barker of City West Water, to discuss industry and adaptation to climate change. The roundtable was attended by a couple of dozen people from industry, public policy and research. The discussion was really interesting, with industry representatives talking about the opportunities they were pursuing, how targeted R&D could keep down product prices (e.g., in housing construction) and what kinds of supporting policy they would like to see. There are clearly lots of opportunities for collaboration between research and industry but they won’t be successful without close cooperation.
As part of the roundtable, an Industry Roundtable Context Paper (pdf download) was prepared by Celeste Young and myself. We tried to keep it simple and direct. It’s scope is also limited to Victoria, but we hope it also is relevant in a broader context. The main points are (not rocket science!): Read the rest of this entry »
Food Security and Climate Change
An excellent briefing from Paul Rogers of the Oxford Research Group on food security and climate change is updating the current global situation with respect to recent climate events (Hat tip to Jamie Doughney). I’ll reproduce it below after making a few comments.
Most of the briefing concentrates on the conditions of the 1974 food crisis to add a historical perspective. Globally, the US and North America is in the second year of drought, looking at greatly reduced maize production and other other crops. The southwest Indian monsoon is somewhat late and currently at 17% below the 50-year average after a poor year last year. The Horn of Africa is in a delicate recovery stage after last year’s disaster, and efforts to build resilience in the region are ongoing. A recent report from scientists at the UK’s Met Office and the USA’s National Oceanographic and Atmospheric Administration (NOAA) found that the number of below average rainy seasons in East Africa could have been attributable to warming in the Indian and Western Pacific Oceans.
Rogers states that economic growth has been patchy, so that the proportion of people under food stress has not changed greatly since the 1970s. This time around though, he nominates climate change as making a significant contribution to that stress. I agree. One part of that is the asymmetric impact of warming on land affecting drier regions. This is pretty well known. The other is that he suggests climate change is accelerating:
The loss of Arctic sea in recent summers has exceeded forecasts using climate modelling and some recent events have been startling in their intensity, including the extent of the thawing of surface layers of the Greenland ice cap during the early part of July.
This is because climate change is strongly non-linear, and there is increasing evidence that the world, or at least much of the northern hemisphere, is in a warming episode similar to that experienced in 1997-98. The idea that extremes should change gradually on a smoothly changing mean climate is seriously wrong, and if the world continues to adapt based on that assumption, millions of people will continue to be at risk through insufficient adaptation efforts.
I’m champing at the bit to get back to this research because I use different methods to those of mainstream climate science (but also have a truckload of other work to do). However, both lines of research are pointing to a strong climate change signal in recent extreme events, thereby increasing scientific confidence in its conclusions.
Rogers’ briefing is reproduced below.
Provoking comment and framing risk
A couple of my recent forays into the media have provoked comment below the articles themselves and in emails sent querying particular points. They are worth unpacking because they reflect on the different between the straight communication of science and framing risk.
One was in reference to a recent op-ed in The Age. In it, I said:
If people accept the 0.0038 and 0.02 degree benefits as valid then they also accept the science behind a 5.3 degrees warming for business as usual (As in the emission scenario created by Treasury for the 2008 Garnaut Review). Who wants to live in a world warming by 5 degrees or more? Major food crops could not be grown in many parts of the world, projected sea level rise would be tens of metres, most of the shelled species in the ocean would not survive, ecosystems would be disrupted as the pace of change outstripped their ability to adapt and millions to billions of people would lose environmental security leading to mass migrations never before seen.
That prompted an email from an earth scientist wanting to know what peer-reviewed reference I was using for the projected tens of metres of sea level rise. I sent back this now famous diagram and a note saying that I wasn’t putting it on a timetable. He then replied suggesting that people could be misled into thinking that the date was 2100 (because that was tied to the two temperature measures) and that I was being alarmist. Because it would take thousands of years to be realised. Read the rest of this entry »