New scholarship to research the economics of climate risk
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A Macquarie University Research Excellence Scholarship is available in the Department of Economics to undertake research in climate risk.
Climate Risk CORE
The Climate Risk Concentration of Research Excellence (CORE) brings together world-class research expertise at Macquarie University.
The challenge is how to quantify and assess climate change-associated risks for key sectors such as water, food, biodiversity, economies, financial markets and national security. Some sectors are robust and would withstand significant climate change - others are highly vulnerable since they have become tuned to the existing climate state.
Climate change in economic terms
"The effects of human-caused greenhouse gases and global warming are becoming increasingly visible from record temperatures to rising sea levels," says Scholarship supervisor George Milunovich. "In economic terms a recent review found that, in the absence of policy action, climate change is likely to reduce world GDP by between five per cent and 20 per cent permanently. In contrast, the cost of acting to reduce greenhouse gas emissions is estimated to be around one per cent of world GDP."
The scholarship holder will analyse the relative efficiencies of alternative trading platforms in terms of greenhouse gas emissions, valuation, price discovery and market liquidity. They will evaluate the relative effectiveness of the existing trading schemes and their efficiencies in price/value discovery and risk mitigation. One of the expected outcomes of the project will be a recommendation of a trading scheme that is most applicable to Australia's circumstances.
Project aims
"The overall aim of this project is to inform international policy debate on the best type of market structure for carbon trading through an understanding of the behaviour of existing carbon markets," says Milunovich . "By working closely with the Climate Risk CORE we also expect to be able to publish the first papers in this new area and firmly establish an international reputation for Macquarie University in the field by the time the National Emissions Trading Scheme is expected to commence in Australia."
Scholarship details
Applicants should have completed research qualifications equivalent to an Australian four-year undergraduate degree with first class honours in a relevant discipline, such as economics, finance, actuarial studies or statistics.
The award living allowance is currently $32,500 per annum (tax exempt) comprising Macquarie University Research Excellence Scholarship stipend plus a Division of Economic and Financial Studies top-up. Tenure is for 3.5 years full-time subject to satisfactory progress. Tuition fees will be funded for the scholarship tenure.
For further information on the project contact Dr George Milunovich george.milunovich@mq.edu.au
Application forms and conditions of award are available from the Higher Degree Research Office www.research.mq.edu.au/students/scholarships. Applications close 31 January 2007.