Evaluating the returns to research on a project level : cover crops in the South African wine industry

[摘要] ENGLISH ABSTRACT:The purpose of the study is to determine the rate of return to cover crop research in thewine industry. The method followed will prove an invaluable contribution toward theneed to determine a suitable approach for evaluation studies. The importance behind sucha study is the development of appropriate ex ante evaluation approaches, which will assistin the allocation of public research resources in both a social and economical manner.The wine industry is currently enjoying healthy international demand, but will need toremain competitive to reap the full benefit of international exposure. The need thereforeexists for a continuation of research at the institutional level, in order to maintain theprogressive nature of research knowledge that was available in the past. The evaluation ofex post and ex ante research will assist in maintaining government funding for researchand help with campaigning for private investment of research in the wine industry.The use of two evaluation approaches was used for the analysis. Firstly, the productionfunction approach achieved a rate of return of 44 percent, using weather and researchexpenditure as a means to explain the variations in wine grape yield. Secondly, a costbenefit approach was devised in order to make a direct comparison between the cost andbenefits related to the cover crop research. The rate of return achieved for this mode ofanalysis is 37 percent, using trial plot data as a source of information on potentialbenefits. In addition to this the cost benefit approach was used to show the difference inrate of return that is achievable between two growing regions. The variable that existsbetween the two regions, is the higher rate of irrigation in one of the regions.The high rate of return achieved for the investment, provides suitable motivation for theincrease in state funding for research in the wine industry, and provides valuableinformation for the enticement of support by private investors. The two methods used inthe study will both draw a certain amount of criticism, largely as a result of the lack of available data. The empirical nature of the approaches is however simple and applicabledown to the project level.

[发布机构] Stellenbosch University