@article{Hertzler:152196,
      recid = {152196},
      author = {Hertzler, Greg and Sanderson, Todd and Capon, Timothy and  Hayman, Peter and Kingwell, Ross S.},
      title = {Climate change and adaptation in Australian wheat dominant  agriculture: a real options analysis},
      address = {2013-02},
      number = {424-2016-27145},
      pages = {24},
      year = {2013},
      abstract = {Australian crop and livestock farmers face uncertain  climate change and variability and a
challenge for  adaptation decisions. These decisions can be (1)  adjustments to practices and
technologies, (2) changes to  production systems, or (3) transformation of industries,  for
example, by relocation to new geographical areas.  Adjustments to existing practices are easy
to make,  relative to changes to production systems or  transformations at the industry level.
Transformations  require new investments and infrastructure and can leave  assets stranded.
These transformations can be partially or  wholly irreversible and hysteresis effects can  make
switching difficult and mistakes costly to reverse.  Real Options offers a framework to
structure thinking and  analysis of these difficult choices. This paper generalises  and extends
the principles of real options to capture the  expected time until transformative thresholds are
crossed.  An application to South Australian wheat dominant  agriculture is explored.},
      url = {http://ageconsearch.umn.edu/record/152196},
      doi = {https://doi.org/10.22004/ag.econ.152196},
}