Bailouts, monitoring, and penalties: an integrated framework of government policies to manage the too-big-to-fail problem

This paper discusses optimal government bailout policy where the costs of systemic failures and moral hazard problems are considered. We find that a three-tiered bailout policy that includes an ex post monitoring and bailout scheme for financial institutions with large systemic impacts ('too big to fail') is optimal. The optimal policy also requires a randomized bailout for medium-impact institutions ('Constructive Ambiguity'), and no bailout for institutions that have only minimal systemic consequences ('too small to save'). However, in a volatile, innovative market environment where individual institutions may know more than the government regulator, monitoring error could contribute to risk taking, leaving the government regulator to always play a 'catch-up' role in revising policy. Moreover, the optimal bailout policy may not be time-consistent: institutions not deemed 'too big to fail' may still have an incentive to take excessive risks and expect to be bailed out in case of insolvency, primarily due to the short-term orientation of the government. Finally, because an institution's systemic cost affects the probability of a bailout, we show that the boundary of an institution may be extended by the government subsidy.

Linking eCommerce and human resource strategies: a case study in a large Australian retail bank

The implementation of eCommerce technologies has considerably changed how employees in the banking industry interact with customers. For example, some customers use electronic banking applications to such an extent that they find little or no need to go into a branch. This change has had a significant impact on the way that jobs are designed and the way that employees are being managed. The preliminary findings from the case study of a large bank in Australia indicate that moving customers out of the branch to an online environment has created unforeseen issues for the way employees interact with customers and this in turn has changed the way that they do their jobs. The key challenge for banks in the future is how to form effective relationships with customers without some kind of face-to-face interaction. This impacts how organisations recruit and retain their staff as well as the level and type of skills required for jobs redesigned after the implementation of eCommerce applications. It is also an important factor in employee satisfaction.

Is the Genuine Progress Indicator really genuine? Considering well-being impacts of exports and imports

The Genuine Progress Indicator (GPI) is estimated as if nations operate within a closed economy. Therefore, in terms of coverage, the GPI is most analogous to Gross Domestic Product (GDP). Indeed, within the relevant literature, these two indicators are most often contrasted. However, consideration should be given to adapting the GPI, so it has more in common with Gross National Income (GNI). As with GDP, the GPI is concerned only with a particular physical location. Yet, it may be more effective if the GPI was freed from these physical boundaries in a similar manner to GNI. The GPI should be concerned more with the 'ownership' of the costs and benefits associated with economic growth than with the 'location' of those costs and benefits. Those that derive the most benefit from exploitation of the environment are often physically removed from the location of that damage. The GPI does not consider the net consumers of the negative externalities of environmental costs, merely the producers. Currently, however, the structure of the GPI allows a nation to enjoy, without penalty, the benefits of importing goods from countries which bear a disproportionately large cost of environmental degradation. This results in an overstatement of the real progress experienced by the county importing 'dirty goods'. This paper will investigate how certain GPI adjustments may be adapted to overcome this present shortcoming. However, the purpose of this paper is not only to empirically implement this new approach, but also to stimulate debate as to its potential merit.

Towards understanding the impacts of the pet food industry on world fish and seafood supplies

The status of wild capture fisheries has induced many fisheries and conservation scientists to express concerns about the concept of using forage fish after reduction to fishmeal and fish oil, as feed for farmed animals, particularly in aquaculture. However, a very large quantity of forage fish is being also used untransformed (fresh or frozen) globally for other purposes, such as the pet food industry. So far, no attempts have been made to estimate this quantum, and have been omitted in previous fishmeal and fish oil exploitation surveys. On the basis of recently released data on the Australian importation of fresh or frozen fish for the canned cat food industry, here we show that the estimated amount of raw fishery products directly utilized by the cat food industry equates to 2.48 million metric tonnes per year. This estimate, plus the previously reported global fishmeal consumption for the production of dry pet food suggest that 13.5% of the total 39.0 million tonnes of wild caught forage fish is used for purposes other than human food production. This study attempts to bring forth information on the direct use of fresh or frozen forage fish in the pet food sector that appears to have received little attention to this date and that needs to be considered in the global debate on the ethical nature of current practices on the use of forage fish, a limited biological resource.

Phytophthora cinnamomi and Australia’s biodiversity : impacts, predictions and progress towards control

Phytophthora cinnamomi continues to cause devastating disease in Australian native vegetation and consequently the disease is listed by the Federal Government as a process that is threatening Australia’s biodiversity. Although several advances have been made in our understanding of how this soil-borne pathogen interacts with plants and of how we may tackle it in natural systems, our ability to control the disease is limited. The pathogen occurs widely across Australia but the severity of its impact is most evident within ecological communities of the south-west and south-east of the country. A regional impact summary for all states and territories shows the pathogen to be the cause of serious disease in numerous species, a significant number of which are rare and threatened. Many genera of endemic taxa have a high proportion of susceptible species including the iconic genera Banksia, Epacris and Xanthorrhoea. Long-term studies in Victoria have shown limited but probably unsustainable recovery of susceptible vegetation, given current management practices. Management of the disease in conservation reserves is reliant on hygiene, the use of chemicals and restriction of access, and has had only limited effectiveness and not provided complete control. The deleterious impacts of the disease on faunal habitat are reasonably well documented and demonstrate loss of individual animal species and changes in population structure and species abundance. Few plant species are known to be resistant to P. cinnamomi; however, investigations over several years have discovered the mechanisms by which some plants are able to survive infection, including the activation of defence-related genes and signalling pathways, the reinforcement of cell walls and accumulation of toxic metabolites. Manipulation of resistance and resistance-related mechanisms may provide avenues for protection against disease in otherwise susceptible species. Despite the advances made in Phytophthora research in Australia during the past 40 years, there is still much to be done to give land managers the resources to combat this disease. Recent State and Federal initiatives offer the prospect of a growing and broader awareness of the disease and its associated impacts. However, awareness must be translated into action as time is running out for the large number of susceptible, and potentially susceptible, species within vulnerable Australian ecological communities.

Land use change and impacts on nutrient loads using GIS

Land use change and its impacts on nutrient loads were investigated for the Glenelg-Hopkins Catchment in south-west Victoria, Australia. The study involved a cross-disciplinary approach comprising of remote sensing, Geographical Information Systems, spatial and statistical modelling to identify relationships between land use and stream water quality over a large regional catchment of 27,000 square kilometers.

Proposal of a tiered conceptual framework for sustainable design and planning of large-scale development projects in the metropolitan context

The overwhelming threat posed by climate change means that increasingly, emphasis is being placed on the need to integrate sustainability considerations into all areas of policy making, planning and development. Actors in the built environment are progressively considering environmental and social issues alongside functional and economic aspects of development projects. However, to date in Australia and internationally, there have been few practical examples of integrated applications of sustainability principles in the built environment across design, planning, construction, operation and de-construction phases. Notable initiatives have tended to be narrow in scope, focusing on either mitigation or adaptation strategies. Integrated considerations of impacts from component and building scales to city and regional scales and across physical and socio-economic dimensions are urgently needed, particularly for long-life major infrastructure projects. This paper proposes a conceptual framework based on the principal that early intervention is the most cost-effective and efficient means of implementing effective strategies for mitigation and adaptation. A Strategic Environmental Assessment (SEA) approach is forwarded as an umbrella analytical framework, assembled from analytical methods which are strategically ‘tiered’ to inform different stages of the planning and decision-making process. Techniques such as Ecological footprint, Life cycle costing and Risk analysis may be applied to integrate sustainable design, construction and planning considerations which address both mitigation and adaptation dimensions, results of each analysis ultimately being collated into the overall SEA. This integrated conceptual framework for sustainable, resilient and cost-effective infrastructure development will in practice be applied to assess selected case-studies of major development projects in Australia, focusing on the area of stadium development. Practically applied and timed accordingly, the framework would allow assessments to be targeted towards appropriate decision making levels and enable better decision-making and more efficient resource allocation for major infrastructure development projects.

Large-scale mechanical peeling of boron nitride nanosheets by low-energy ball milling

Mechanical cleavage by Scotch tape was the first method to produce graphene and is still widely used in laboratories. However, a critical problem of this method is the extremely low yield. We have tailored ball milling conditions to produce gentle shear forces that produce high quality boron nitride (BN) nanosheets in high yield and efficiency. The in-plane structure of the BN nanosheets has not been damaged as shown by near edge X-ray absorption fine structure measurements. The benzyl benzoate acts as the milling agent to reduce the ball impacts and milling contamination. This method is applicable to any layered materials for producing nanosheets.

Foreign environmental impacts on export performance A study of agribusiness firms exporting to Japan

Although a large body of literature exists on export performance, little attention has been given to how foreign environments impact on the performance of firms exporting to a particular market. This study examines how the business environment in Japan impacts on a sample of New Zealand agribusiness firms exporting to this market. Using path analysis with LISREL, the findings suggest that the foreign environment in Japan has a small but significant adverse impact on export performance. The results also show that exporters are able to mediate the adverse effects of the Japanese business environment on their overall export performance by formulating effective product, pricing, promotion and distribution strategies.

Evaluation of salmon farming effects on marine systems in the inner seas of southern Chile : a large-scale mensurative experiment

The impact of salmon farming on the environment has been widely studied; there is, however, no consensus on the magnitude and quality of these effects and little information on their extent over large salmon farming areas. Forty-three salmon farm sites of which 29 are in full operation and grouped in nine locations in southern Chile were evaluated. Using statistical methods (two-way anova), no effects were found on water column variables such as nitrate, ammonia, orthophosphate and chlorophyll, whereas they were significant on sediment variables such as nitrogen (N), phosphorus (P) and organic carbon (OC), among others. Natural variability evaluation of some parameters revealed that P in sediments had the lowest coefficient of variation (23.2%) when compared with N (65.2%), particulate organic matter (POM) (139%) and OC (39%), and showed more marked salmon farming effects with no locality effects. Four of the nine locations showed stronger effects on sediments, with average P values ranging from 150 to 230 mmol that were six to nine times higher than in control sites (25 mmol). Nitrogen and carbon in sediments, while showing significant effects on salmon farming, also showed locality effects that revealed other biogenic processes influencing sediment composition. Thus, P in sediments was proposed as a promising indicator of impact on salmon farming, although the relationship with fauna in sediments was not linear and somewhat variable; more research is therefore needed to understand such connections. Considering entire geographical locations, no relationship was found between sediment conditions under salmon cages and the condition of the water column at a farm. This may indicate the possibility of high dilution rates and recycling processes, which so far preclude the detection of more global impacts beyond the cages shadow.

Thermal niche, large-scale movements and implications of climate change for a critically endangered marine vertebrate

Climate change is expected to have a number of impacts on biological communities including range extensions and contractions. Recent analyses of multidecadal data sets have shown such monotonic shifts in the distribution of plankton communities and various fish species, both groups for which there is a large amount of historical data on distribution. However, establishing the implications of climate change for the range of endangered species is problematic as historic data are often lacking. We therefore used a different approach to predict the implications of climate change for the range of the critically endangered planktivourous leatherback turtle (Dermochelys coriacea). We used long-term satellite telemetry to define the habitat utilization of this species. We show that the northerly distribution limit of this species can essentially be encapsulated by the position of the 15°C isotherm and that the summer position of this isotherm has moved north by 330 km in the North Atlantic in the last 17 years. Consequently, conservation measures will need to operate over ever-widening areas to accommodate this range extension.

Problem gambling and family violence : family member reports of prevalence, family impacts and family coping

There exists only a small number of empirical studies investigating the patterns of family violence in problem gambling populations, although some evidence exists that intimate partner violence and child abuse are among the most severe interpersonal correlates of problem gambling. The current article reports on the Australian arm of a large-scale study of the patterns and prevalence of co-occurrence of family violence and problem gambling in Australia, New Zealand and Hong Kong. The current study screened 120 help-seeking family members of problem gamblers in a range of clinical services for both family violence and problem gambling. The main results showed that 52.5% reported some form of family violence in the past 12 months: 20.0% reported only victimisation, 10.8% reported only perpetration and 21.6% reported both victimisation and perpetration of family violence. Parents, current and ex-partners were most likely to be both perpetrators and victims of family violence. There were no gender differences in reciprocal violence but females were more likely to be only victims and less likely to report no violence in comparison to males. Most of the 32 participants interviewed in depth, reported that gambling generally preceded family violence. The findings suggest that perpetration of family violence was more likely to occur as a reaction to deeply-rooted and accumulated anger and mistrust whereas victimisation was an outcome of gambler’s anger brought on by immediate gambling losses and frustration. While multiple and intertwined negative family impacts were likely to occur in the presence of family violence, gambling-related coping strategies were not associated with the presence or absence of family violence. The implications of the findings for service providers are discussed.

Climate-driven impacts of prey abundance on the population structure of a tropical aquatic predator

In the present study we explore how annual variation in climate (late wet-season rainfall) affects population demography in a gape-limited obligate piscivorous predator, the Arafura filesnake Acrochordus arafurae in the Australian tropics. These aquatic snakes display extreme sexual dimorphism, with body sizes and relative head sizes of females much larger than those of males. Two consecutive years with low rainfall during the late wet season reduced the abundance of small but not large sized fish. Although snake residual body mass (RBM, calculated from a general linear regression of ln-transformed mass to ln-SVL) decreased after the first year with low prey availability, it was not until the second year that reduced prey abundance caused a dramatic decline in filesnake survival, and hence in population numbers. Thus, our results suggest that most snakes survived the first year of reduced prey abundance, but a successive year with low prey availability proved fatal for many animals. However, the effects of prey scarcity on RBM and survival fell disproportionately on some size classes of snakes. Medium-sized animals (large males and intermediate-sized females) were affected more dramatically than were small or large snakes. We attribute the higher survival of small snakes to their lower energy needs compared to medium-sized individuals, and the higher survival of large snakes to the continued abundance of large prey (mainly large catfish). Two successive years with low abundance of smaller sized prey thus massively modified the size-structure of the filesnake population, virtually eliminating large males and intermediate-sized females. Our field data provide a clear demonstration of the ways in which stochastic variation in climatic conditions can have dramatic effects on predator population demography, mediated via effects on prey availability.