A Meta-Analysis of Benefit-Cost-Assessments for Australian Forest and Wood Products RD&E Investments (PRE495-1920)
This project was developed to provide a detailed meta-analysis of Benefit-cost Analysis (BCAs) of RD&E investment undertaken within the forestry and wood processing industry over the past 15 years. FWPA has been commissioning independent assessments of its research and development investment on a semi-regular basis over that period. The purpose of this meta-analysis is to estimate and present an aggregate return on industry investment in collaborative research, development and extension (RD&E).
The project objective was to review and report on known BCAs for forest and wood industry research projects/programs over the past 15 years.
Data from 36 BCAs conducted on such forestry RD&E investments over the past 15 years were assessed and aggregated for the 2019 FWPA BCA meta-analysis. The analysis found that investment in collaborative forestry research has produced significant benefits for the Australian forest and wood products industry and the Australian economy with positive BCRs ranging from 1.2 to 69.50 to 1 and an estimated aggregate NPV of $645.18 million (2018/19 dollar terms). Though the sample of BCAs for each industry investment area was small, results reported in the BCAs indicated that investments in the wood processing and manufacturing area (6 projects) have performed best with a simple average BCR of 15.0 to 1.
Aggregate investment criteria were estimated indirectly, derived from the nominal RD&E investment costs and NPVs reported in each BCA. The aggregate weighted average BCR for all 36 BCAs was estimated to be 5.1 to 1. The result is positive and in line with performance results reported across all 15 Australian Rural RDCs where an estimated, aggregate BCR of 5.5 to 1 was reported in 2019.