Can R&D investment offset the negative impact of climate change on agricultural productivity?

Authors

Nazrul Islam, Department of Agriculture and Food, Western Australia
Ruhul A. Salim, Curtin University of Technology, Western Australia

Publication Date

11-2009

Publisher

Western Australian Agriculture Authority

City

Perth

ISBN

978-0-9807334-0-2

Abstract

Productivity growth in agriculture helps maintain the nation's economic prosperity. However, long-run productivity growth in agriculture faces several challenges such as the potential worsening of climate due to global warming and the loss of productive land due to land use competition, salinity, wind erosion and soil acidity. Strategic policy making and appropriate funding for sustained productivity growth in agriculture is therefore crucial.

Research and development (R&D) to drive innovation is an acknowledged main source of productivity growth. The development and application of technologies generated through R&D boosts agriculture's productivity. Agricultural R&D activities in Australia and in most other developed economies such as the USA, Canada and the UK have relied heavily on government funding. However, government investment in Australian agricultural R&D is falling.

This report examines the short-run and long-run impact of R&D and climate change (measured in terms of change in rainfall) on the productivity growth of broadacre agriculture in Western Australia. Results show that R&D and climate change both affect the long-run productivity growth of Wester Australian broadacre agriculture. Climate change lessens the productivity of agriculture in the long run whilst R&D boosts its productivity.

Number of Pages

30

Keywords

Western Australia, Climate change, Agriculture, Agricultural productivity, Agricultural economics

Disciplines

Agribusiness | Agricultural Economics | Agricultural Science | Agronomy and Crop Sciences | Climate | Natural Resource Economics | Research Methods in Life Sciences

Recommended Citation

Islam, N, and Salim, R A. (2009), Can R&D investment offset the negative impact of climate change on agricultural productivity?. Western Australian Agriculture Authority, Perth. Report.
https://library.dpird.wa.gov.au/cs_publishedrpts/7

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