How We Do It
The AERU employs cutting-edge research methods to provide salient and critical knowledge to primary sector operators.
The AERU Approach
Based at Lincoln University, the AERU keeps up-to-date with the latest and best research methods. In employing these cutting-edge techniques, our research is highly accurate, timely, and cost-effective. We also maintain close ties with industry, ensuring that our work remains relevant and critical for the continued success of New Zealand’s primary sector.
Our Capabilities
+ Capabilities Analysis
The AERU is involved in research that promotes sustainable wellbeing. The Unit applies capabilities analysis to assess the wellbeing of individuals and groups. Amartya Sen’s Capabilities Approach (CA) informs the theoretical basis of our wellbeing analysis. The CA conceptualises wellbeing around people’s capabilities and achieved functionings. Research assistant Simon Duff is using the approach in his doctoral thesis, which focuses on social enterprise whose mission centres on employment creation for marginalised communities in New Zealand.
Examples include:
- Duff, S. (forthcoming). Social Enterprise and Wellbeing - A Functionings' Perspective. Lincoln University.
+ Capitals-Based Analysis
The AERU has developed a wellbeing framework that guides its research promoting sustainable wellbeing. The framework adopts a capitals-based approach to sustainability, focusing on seven types of capital: economic, natural, human, social, cultural, knowledge, and diplomatic. These capital stocks provide a flow of services that are important for wellbeing. Investment across these stocks can improve wellbeing outcomes by expanding the capabilities of people to lead valued lives. The AERU applies this capitals-based wellbeing approach to assess how we can best utilise and sustain wealth at local, regional, national and global level.
Examples include:
+ Carbon Footprint Calculator
The Farm Carbon Footprint Calculator was developed to help agribusiness customers better understand their carbon footprint. It incorporates emission factors such as farm size; production and revenue; animal stock type and numbers; fertiliser, feed, and fuel usage; and land use. The calculator provides an estimate of farm CO2 emissions and the planting required to offset/sequester these. The development of the Farm Carbon Footprint Calculator was supported by Meridian Energy and Westpac New Zealand.
+ Choice Modelling
Choice Modelling is used to describe and predict how people make choices between alternatives, such as the choice of food product, transport option, where to go fishing, or numerous other applications. It can be used to identify which attributes are most important in consumer choices, by how much, and to who.
Examples include:
+ Climate Change Adaptation Planning
The AERU has expertise in different aspects of adaptation planning for climate change. These include developing participatory adaptation pathways, identifying adaptation options, economic appraisal for adaptation, and climate change risk assessments.
See also Climate Change Risk Assessment and Real Options Analysis below.
Examples include:
- Primary Sector Preparedness
- Robust Water Decisions
- Climate adaptation pathways for agriculture: Insights from a participatory process
- The added value of real options analysis for climate change adaptation
- Impacts of climate change on livestock and possible adaptations: A case study of the United Kingdom
- Adaptation knowledge for New Zealand's primary industries: Known, not known and needed
Anita Wreford was New Zealand’s only Lead Author on the Special Report on Climate Change and Land, contributing to Chapter 7 “Risk Management and Decision-Making in Relation to Sustainable Development”.
+ Climate Change Risk Assessment
Climate change, and our response to it, presents unprecedented challenges to our communities, natural environment and all sectors of the economy. The international Taskforce on Climate Related Financial Disclosures (TCFD) has developed recommendations for more effective climate-related disclosures that could promote more informed investment, credit, and insurance underwriting decisions. In New Zealand, the government is proposing mandatory climate risk reporting for publicly listed companies and large insurers, banks, non-bank deposit takers and investment managers.
The AERU has expertise in climate change risk assessment, and led the Economy Domain risk in New Zealand’s first National Climate Change Risk Assessment.
Examples include:
+ Cost Benefit Analysis
Cost-Benefit Analysis provides a framework for weighing the benefits against the costs of a project. This process helps decision makers decide whether to proceed with a particular project, or how to choose which of a set of competing projects is more favourable.
Examples include:
+ Key Informant Interviews
The AERU has an extensive history of carrying out key informant interviews, employing a tested, professional and friendly approach. Interview data analysis is carried out using up-to-date qualitative methods, including data quality and variability checking procedures.
Examples include:
+ LTEM Model
The Lincoln Trade and Environment Model (LTEM) has been developed by AERU researchers based on the VORSIM modelling platform created in the United States. The LTEM is a multi-commodity and multi-country partial equilibrium model focused on projecting changes in international markets for agricultural products, and the outputs of greenhouse gas and groundwater nitrates implied from changes in these markets.
The LTEM is used to analyse linkages between international trade in agricultural products and economic and environmental impacts. It was used to inform the Free Trade negotiations between China and New Zealand, and was part of the advice for DEFRA in the UK on the proposed Free Trade Agreement between the European Union and the Mercosur trading bloc. Other examples include analysis of: climate change impacts on New Zealand’s agricultural sector: policies such as the Emissions Trading Scheme; and changes in market conditions, access and diets. It was a key tool in the Master’s Thesis research of Meike Guenther and an important part of the analysis in the report The Land and the Brand.
Examples include:
Modelling Agricultural Impacts of EU-NZ Trade Liberalisation
International Trade Implications for Consumer Attitudes to New Zealand Food Attributes
+ Non-Market Valuation
Estimating the value of intangibles and other difficult to measuring benefits is the task of Non-Market Valuation. This is a set of techniques (including Choice Modelling) that can provide answers to valuation questions where no market price information is available. Applications include market research on consumer preferences for new product attributes, environmental research on recreation site choices, public policy on the value of water quality improvements, and many other contexts where new information is needed to be created.
Examples include:
+ Real Options Analysis
Real Options Analysis has its origins in financial economics, but is increasingly being applied to climate change adaptation decisions. It is particularly suited to inform investment decisions for large, irreversible and long-lived investments under conditions of uncertainty. It builds on Cost-Benefit Analysis, but includes the value of flexibility, and allows for the consideration of a range of climate futures.
The AERU has applied Real Options Analysis to a water storage example and will apply it to another agricultural climate change adaptation decision in a current project.
Examples include:
+ Survey Design and Implementation
The AERU has over 50 years of experience in survey design and implementation, with extensive use of survey tools for research. This has included large-scale Government- and industry-supported international consumer survey projects informing key agencies in the promotion and export of New Zealand’s primary products in key overseas markets. Using cutting-edge methods, we can provide the information you need from your target group, whoever or wherever they are, from survey design to usable insights.
Examples include:
+ Value Chain Analysis
The AERU investigates how agribusiness value chains can better share value from the consumer, upstream to the producer on farm. The unit utilises a qualitative interview methodology and multidisciplinary team consisting of economists, supply chain specialists, and business consultants. Research has identified important attributes for value creation and capture. These form the foundation for subsequent studies that aim to help value chains upgrade from the production of bulk commodities, to the production of value-added products that increase the value of New Zealand exports.
Examples include: