Implications of seasonal climate forecasts on world wheat trade: a stochastic, dynamic analysis

Improvements in seasonal climate forecasts have potential economic implications for international agriculture. A stochastic, dynamic simulation model of the international wheat economy is developed to estimate the potential effects of seasonal climate forecasts for various countries' wheat production, exports and world trade. Previous studies have generally ignored the stochastic and dynamic aspects of the effects associated with the use of climate forecasts. This study shows the importance of these aspects. In particular with free trade, the use of seasonal forecasts results in increased producer surplus across all exporting countries. In fact, producers appear to capture a large share of the economic surplus created by using the forecasts. Further, the stochastic dimensions suggest that while the expected long-run benefits of seasonal forecasts are positive, considerable year-to-year variation in the distribution of benefits between producers and consumers should be expected. The possibility exists for an economic measure to increase or decrease over a 20-year horizon, depending on the particular sequence of years.

Effect of rainfall as a component of climate change on estuarine fish production in Queensland, Australia

The speculation that climate change may impact on sustainable fish production suggests a need to understand how these effects influence fish catch on a broad scale. With a gross annual value of A$ 2.2 billion, the fishing industry is a significant primary industry in Australia. Many commercially important fish species use estuarine habitats such as mangroves, tidal flats and seagrass beds as nurseries or breeding grounds and have lifecycles correlated to rainfall and temperature patterns. Correlation of catches of mullet (e.g. Mugil cephalus) and barramundi (Lates calcarifer) with rainfall suggests that fisheries may be sensitive to effects of climate change. This work reviews key commercial fish and crustacean species and their link to estuaries and climate parameters. A conceptual model demonstrates ecological and biophysical links of estuarine habitats that influences capture fisheries production. The difficulty involved in explaining the effect of climate change on fisheries arising from the lack of ecological knowledge may be overcome by relating climate parameters with long-term fish catch data. Catch per unit effort (CPUE), rainfall, the Southern Oscillation Index (SOI) and catch time series for specific combinations of climate seasons and regions have been explored and surplus production models applied to Queensland's commercial fish catch data with the program CLIMPROD. Results indicate that up to 30% of Queensland's total fish catch and up to 80% of the barramundi catch variation for specific regions can be explained by rainfall often with a lagged response to rainfall events. Our approach allows an evaluation of the economic consequences of climate parameters on estuarine fisheries. thus highlighting the need to develop forecast models and manage estuaries for future climate chan e impact by adjusting the quota for climate change sensitive species. Different modelling approaches are discussed with respect to their forecast ability. (c) 2006 Elsevier Ltd. All rights reserved.

Graduate overeducation and its effects among recently arrived immigrants to Australia: A longitudinal survey

There is increasing importance attached to skill-based immigration in many countries including Australia. This paper investigates the incidences, determinants, and returns to graduate overeducation among tertiary qualified immigrants during the early phase of their settlement in Australia. We place particular emphasis on visa categories and region of origin. As expected, those on visas with higher skill requirements perform better in the labour market. The bulk of these are immigrants from English Speaking Backgrounds (ESB). Non-English Speaking Background (NESB) immigrants, on the other hand, have higher and persistent rates of overeducation. The wage returns to required and surplus education match the stylized facts of overeducation for ESB and Other NESB immigrants while Asian NESB immigrants receive no return to surplus education. Thus, the results suggest that NESB graduate immigrants are a heterogeneous group, with Asian graduate immigrants facing greater assimilation hurdles in the Australian labour market.