Securing Australia's future: The role of science, research and technology in lifting Australian productivity

A three-year research program funded by the Australian Research Council and conducted by the four Learned Academies through the Australian Council of Learned Academies for PMSEIC, through the Office of the Chief Scientist. Securing Australia’s Future delivers research-based evidence and findings to support policy development in areas of importance to Australia’s future.

The good, the bad, and the efficient: Productivity, efficiency, and technical change in the airline industry, 2004–11

This study models the joint production of desirable and undesirable output production (that is, CO2 emissions) of airlines. The Malmquist–Luenberger productivity index is employed to measure productivity growth when undesirable output production is incorporated into the production model. The results show that pollution abatement activities of airlines lowers productivity growth, which suggests that the traditional approach of measuring productivity growth, which ignores CO2 emissions, overstates ‘true’ productivity growth. The reliability of the results is also tested and verified using confidence intervals based on bootstrapping.

Indian bank efficiency and productivity changes with undesirable outputs: A disaggregated approach

The objective of this study is to examine technical efficiency and productivity growth in the Indian banking sector over the period from 2004 to 2011. We apply an innovative methodological approach introduced by Chen et al. (2011) and Barros et al. (2012), who use a weighted Russell directional distance model to measure technical inefficiency. We further modify and extend that model to measure TFP change with NPLs. We find that the inefficiency levels are significantly different among the three ownership structure of banks in India. Foreign banks have strong market position in India and they pull the production frontier in a more efficient direction. SPBs and domestic private banks show considerably higher inefficiency. We conclude that the restructuring policy applied in the late 1990s and early 2000s by the Indian government has not had a long-lasting effect.

Nigeria's power sector: Analysis of productivity

Nigerian electricity market is characterized by inadequate electricity generation framework, compounded by lack of timely routine maintenances. This results in significant deterioration in plant electricity output. This study analyzes the productivity changes in the Nigerian power sector. Productivity increased on average in the power sector by the adoption of new technologies from best-practice power plants. The assumption of Hicks neutral technological change is found not to be suitable for the Nigerian power sector. This study finds that the plants are not using their capacity meaningfully, instead, there is a tendency to use labor.

Potential climate effect on Japanese rice productivity

Adaptation to climate change has become an important policy question in recent years. Agriculture is an economic activity that is most sensitive to climate change. We evaluate the dynamic effects of productivity change and individual efforts to adapt to climate change. Adaptation actions in agriculture are evaluated to determine how the climate affects production efficiency. In this paper, we use the bi-directional distance function method to measure Japanese rice production loss due to climate. We find that (1) accumulated precipitation has the greatest effect on rice production efficiency and (2) the climate effect on rice production efficiency decreases over time. Our results empirically support the benefit of the adaptation approach.

Submission to the Productivity Commission issues paper business set-Up, transfer and closure

The Commission has been asked to identify appropriate options for reducing entry and exit barriers including advice on the potential impacts of the personal/corporate insolvency regimes on business exits...

Submission to the Productivity Commission draft report business set-up, transfer and closure

The Commission has released a Draft Report on Business Set-Up, Transfer and Closure for public consultation and input. It is pleasing to note that three chapters of the Draft Report address aspects of personal and corporate insolvency. Nevertheless, we continue to make the submission to national policy inquiries and discussions that a comprehensive review should be undertaken of the regulation of insolvency and restructuring in Australia. The last comprehensive review of the insolvency system was by the Australian Law Reform Commission (the Harmer Report) and was handed down in 1988. Whilst there have been aspects of our insolvency laws that have been reviewed since that time, none has been able to provide the clear and comprehensive analysis that is able to come from a more considered review. Such a review ought to be conducted by the Australian Law Reform Commission or similar independent panel set up for the task. We also suggest that there is a lack of data available to assist with addressing questions raised by the Draft Report. There is a need to invest in finding out, in a rigorous and informed way, how the current law operates. Until there is a willingness to make a public investment in such research with less reliance upon the anecdotal (often from well-meaning but ultimately inadequately informed participants and others) the government cannot be sure that the insolvency regime we have provides the most effective regime to underpin Australia’s commercial and financial dealings, nor that any change is justified. We also make the submission that there are benefits in a serious investigation into a merged regulatory architecture of personal and corporate insolvency and a combined personal and corporate insolvency regulator.

Grassland productivity limited by multiple nutrients

Terrestrial ecosystem productivity is widely accepted to be nutrient limited1. Although nitrogen (N) is deemed a key determinant of aboveground net primary production (ANPP)2,3, the prevalence of co-limitation by N and phosphorus (P) is increasingly recognized4,​5,​6,​7,​8. However, the extent to which terrestrial productivity is co-limited by nutrients other than N and P has remained unclear. Here, we report results from a standardized factorial nutrient addition experiment, in which we added N, P and potassium (K) combined with a selection of micronutrients (K+μ), alone or in concert, to 42 grassland sites spanning five continents, and monitored ANPP. Nutrient availability limited productivity at 31 of the 42 grassland sites. And pairwise combinations of N, P, and K+μ co-limited ANPP at 29 of the sites. Nitrogen limitation peaked in cool, high latitude sites. Our findings highlight the importance of less studied nutrients, such as K and micronutrients, for grassland productivity, and point to significant variations in the type and degree of nutrient limitation. We suggest that multiple-nutrient constraints must be considered when assessing the ecosystem-scale consequences of nutrient enrichment.

Energy productivity and decarbonization of the global economy: Factor five resource productivity

In the 21st Century much of the world will experience untold wealth and prosperity that could not even be conceived only some three centuries before. However as with most, if not all, of the human civilisations, increases in prosperity have accumulated significant environmental impacts that threaten to result in environmentally induced economic decline. A key part of the world’s response to this challenge is to rapidly decarbonise economies around the world, with options to achieve 60-80 per cent improvements (i.e. in the order of Factor 5) in energy and water productivity now available and proven in every sector. Drawing upon the 2009 publication “Factor 5”, in this paper we discuss how to realise such large-scale improvements, involving complexity beyond technical and process innovation. We begin by considering the concept of greenhouse gas stabilisation trajectories that include reducing current greenhouse gas emissions to achieve a ‘peaking’ of global emissions, and subsequent ‘tailing’ of emissions to the desired endpoint in ‘decarbonising’ the economy. Temporal priorities given to peaking and tailing have significant implications for the mix of decarbonising solutions and the need for government and market assistance in causing them to be implemented, requiring careful consideration upfront. Within this context we refer to a number of examples of Factor 5 style opportunities for energy productivity and decarbonisation, and then discuss the need for critical economic contributions to take such success from examples to central mechanisms in decarbonizing the global economy.

ACE Research Vignette 047: What is the hard evidence on innovation and business productivity

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international Entrepreneurship researchers. This vignette, written by Professor Beth Webster at Swinburne University of Technology, examines how innovation in small and medium size businesses affect their productivity.

Productivity of the suffixes -ness and -ity in 17th-century English letters : A sociolinguistic approach

Tässä työssä tutkitaan englannin kielen substantiivijohtimien -ness ja -ity produktiivisuutta 1600-luvulla kirjoitetuissa kirjeissä. Näitä lähes synonyymisiä johtimia käytetään yleensä merkitykseltään abstraktien substantiivien muodostamiseen adjektiiveista (esim. productive 'produktiivinen' > productiveness tai productivity 'produktiivisuus'). Johtimista -ity on lainautunut englantiin ranskasta ja myöhemmin myös latinasta; se on sekä fonologialtaan että semantiikaltaan läpinäkymättömämpi kuin kotoperäinen -ness. Lisäksi -ity-johdinta on käytetty enimmäkseen formaaleissa tilanteissa ja tieteellisissä teksteissä, kun taas -ness on ollut yleiskäyttöisempi. Tutkielman lähestymistapa on sosiolingvistinen: oletetaan, että johtimien produktiivisuus (eli valmius muodostaa uusia johdoksia) voi vaihdella eri sosiaaliryhmissä. Sosiolingvistiikkaa ei ole aiemmin juurikaan sovellettu produktiivisuuden tutkimiseen. Tutkimusaineistona on Helsingin yliopiston VARIENG-tutkimusyksikön laatima Corpus of Early English Correspondence, varhaisista englanninkielisistä kirjeistä koostuva korpus eli elektroninen tekstikokoelma, joka on suunniteltu historiallisen sosiolingvistiikan tarpeisiin. Korpuksen 1600-luvun kirjeitten yhteenlaskettu pituus on noin 1,4 miljoonaa sanaa, ja ne on kirjoitettu vuosina 1600-1681. Tutkielman tärkeimpänä produktiivisuusmittarina käytetään johtimien avulla muodostettujen eri sanojen eli tyyppien lukumäärää. Hypoteesina on, että -ity-tyyppien määrä on keskimääräistä pienempi huonosti koulutettujen sosiaaliryhmien kirjeissä. Näitä olivat 1600-luvulla naiset sekä alhaisimmat yhteiskuntaryhmät, kuten talonpojat ja käsityöläiset. Johtimen -ness tyyppimäärissä ei odoteta esiintyvän sosiolingvististä variaatiota. Tutkielmassa käsitellään myös tyyppimäärien vertailuun liittyviä metodologisia ongelmia. Koska vaikkapa naisilta ja miehiltä on eri määrä dataa, ei heidän tyyppimääriään voida suoraan verrata keskenään. Esimerkiksi tyyppimäärien normalisointi tuhatta sanaa kohti ei myöskään ole mahdollista, koska tyyppien lukumäärä ei kasva lineaarisesti korpuksen kasvaessa. Tutkielmassa esitetään kielitieteessä harvoin käytetty tilastotieteellinen menetelmä, jonka avulla korpuksen eri osista saatuja tyyppimääriä voidaan verrata koko korpukseen ja testata, ovatko ne tilastollisesti merkittävän pieniä tai suuria. Toisin kuin monet yleisemmät menetelmät, tämä tyyppikertymiin ja permutaatiotesteihin perustuva metodi ei vaadi yksinkertaistavien oletuksien tekemistä. Tutkimustulokset vahvistavat hypoteesin oikeaksi: naisten -ity-tyyppien lukumäärä on tilastollisesti merkittävän alhainen, kun taas -ness-tyyppien määrissä ei ole tilastollisesti merkittäviä eroja. Alhaisimpien yhteiskuntaryhmien osalta tuloksia ei saada, koska niiltä on korpuksessa liian vähän dataa. Analyysissä paljastuu myös yllättävä eroavaisuus: korpuksen ajallisesti ensimmäisessä puoliskossa (1600-1639) on merkittävän vähän -ity-tyyppejä. Tämä voidaan tulkita kielelliseksi muutokseksi: -ity-johtimen produktiivisuus kasvaa kirjeissä 1600-luvun aikana. Saattaa olla, että johtimen produktiivisuus on ensin kasvanut formaalimmissa tekstilajeissa, joista lisääntynyt käyttö on sitten levinnyt myös kirjeisiin, ehkäpä 1640-luvun sisällissodan synnyttämien kontaktiverkostojen siivittämänä. Tuloksien perusteella voidaan sanoa, että sosiolingvistinen vaihtelu on merkittävä tekijä ainakin joittenkin johtimien produktiivisuudessa, joten vaihtelua on syytä tutkia enemmänkin. Tutkimuksessa käytetty metodi mahdollistaa osakorpuksien tyyppimäärien luotettavan vertailun melko pienissäkin korpuksissa, joten se soveltuu hyvin niin historialliseen kielitieteeseen kuin sosiolingvistiikkaankin.

Sustaining productivity of a Vertosol at Warra, Queensland, with fertilisers, no-tillage or legumes. 7. Yield, nitrogen and disease-break benefits from lucerne in a two-year lucerne–wheat rotation

Continuous cultivation and cereal cropping of southern Queensland soils previously supporting native vegetation have resulted in reduced soil nitrogen supply, and consequently decreased cereal grain yields and low grain protein. To enhance yields and protein concentrations of wheat, management practices involving N fertiliser application, with no-tillage and stubble retention, grain legumes, and legume leys were evaluated from 1987 to 1998 on a fertility-depleted Vertosol at Warra, southern Queensland. The objective of this study was to examine the effect of lucerne in a 2-year lucerne–wheat rotation for its nitrogen and disease-break benefits to subsequent grain yield and protein content of wheat as compared with continuous wheat cropping. Dry matter production and nitrogen yields of lucerne were closely correlated with the total rainfall for October–September as well as March–September rainfall. Each 100 mm of total rainfall resulted in 0.97 t/ha of dry matter and 26 kg/ha of nitrogen yield. For the March–September rainfall, the corresponding values were 1.26 t/ha of dry matter and 36 kg/ha of nitrogen yield. The latter values were 10% lower than those produced by annual medics during a similar period. Compared with wheat–wheat cropping, significant increases in total soil nitrogen were observed only in 1990, 1992 and 1994 but increases in soil mineralisable nitrogen were observed in most years following lucerne. Similarly, pre-plant nitrate nitrogen in the soil profile following lucerne was higher by 74 kg/ha (9–167 kg N/ha) than that of wheat–wheat without N fertiliser in all years except 1996. Consequently, higher wheat grain protein (7 out of 9 seasons) and grain yield (4 out of 9 seasons) were produced compared with continuous wheat. There was significant depression in grain yield in 2 (1993 and 1995) out of 9 seasons attributed to soil moisture depletion and/or low growing season rainfall. Consequently, the overall responses in yield were lower than those of 50 kg/ha of fertiliser nitrogen applied to wheat–wheat crops, 2-year medic–wheat or chickpea–wheat rotation, although grain protein concentrations were higher following lucerne. The incidence and severity of the soilborne disease, common root rot of wheat caused by Bipolaris sorokiniana, was generally higher in lucerne–wheat than in continuous wheat with no nitrogen fertiliser applications, since its severity was significantly correlated with plant available water at sowing. No significant incidence of crown rot or root lesion nematode was observed. Thus, productivity, which was mainly due to nitrogen accretion in this experiment, can be maintained where short duration lucerne leys are grown in rotations with wheat.

Sustaining productivity of a Vertosol at Warra, Queensland, with fertilisers, no-tillage or legumes. 8. Effect of duration of lucerne ley on soil nitrogen and water, wheat yield and protein.

Soil nitrogen (N) supply in the Vertosols of southern Queensland, Australia has steadily declined as a result of long-term cereal cropping without N fertiliser application or rotations with legumes. Nitrogen-fixing legumes such as lucerne may enhance soil N supply and therefore could be used in lucerne-wheat rotations. However, lucerne leys in this subtropical environment can create a soil moisture deficit, which may persist for a number of seasons. Therefore, we evaluated the effect of varying the duration of a lucerne ley (for up to 4 years) on soil N increase, N supply to wheat, soil water changes, wheat yields and wheat protein on a fertility-depleted Vertosol in a field experiment between 1989 and 1996 at Warra (26degrees 47'S, 150degrees53'E), southern Queensland. The experiment consisted of a wheat-wheat rotation, and 8 treatments of lucerne leys starting in 1989 (phase 1) or 1990 (phase 2) for 1,2,3 or 4 years duration, followed by wheat cropping. Lucerne DM yield and N yield increased with increasing duration of lucerne leys. Soil N increased over time following 2 years of lucerne but there was no further significant increase after 3 or 4 years of lucerne ley. Soil nitrate concentrations increased significantly with all lucerne leys and moved progressively downward in the soil profile from 1992 to 1995. Soil water, especially at 0.9-1.2 m depth, remained significantly lower for the next 3 years after the termination of the 4 year lucerne ley than under continuous wheat. No significant increase in wheat yields was observed from 1992 to 1995, irrespective of the lucerne ley. However, wheat grain protein concentrations were significantly higher under lucerne-wheat than under wheat wheat rotations for 3-5 years. The lucerne yield and soil water and nitrate-N concentrations were satisfactorily simulated with the APSIM model. Although significant N accretion occurred in the soil following lucerne leys, in drier seasons, recharge of the drier soil profile following long duration lucerne occurred after 3 years. Consequently, 3- and 4-year lucerne-wheat rotations resulted in more variable wheat yields than wheat-wheat rotations in this region. The remaining challenge in using lucerne-wheat rotations is balancing the N accretion benefits with plant-available water deficits, which are most likely to occur in the highly variable rainfall conditions of this region.

Tree species diversity and ecosystem function: Can tropical multi-species plantations generate greater productivity?

Results from the humid tropics of Australia demonstrate that diverse plantations can achieve greater productivity than monocultures. We found that increases in both the observed species number and the effective species richness were significantly related to increased levels of productivity as measured by stand basal area or mean individual tree basal area. Four of five plantation species were more productive in mixtures with other species than in monocultures, offering on average, a 55% increase in mean tree basal area. A general linear model suggests that species richness had a significant effect on mean individual tree basal area when environmental variables were included in the model. As monoculture plantations are currently the preferred reforestation method throughout the tropics these results suggest that significant productivity and ecological gains could be made if multi-species plantations are more broadly pursued.