Global climate variability is projected to result in more frequent and severe droughts, which can have adverse effects on New Zealand’s endemic tree species such as the iconic kauri (Agathis australis). Several studies have investigated the physiological response of kauri to medium- and long-term water stress; however, no research has used hyperspectral technology for the early detection and characterization of water stress in this species. In this study, physiological (stomatal conductance (gs), assimilation rate (A), equivalent water thickness (EWT)) and leaf-level hyperspectral measurements were recorded over a ten-week period on 100 potted kauri seedlings subjected to control (well-watered) and drought treatments. In addition, plant functional traits (PTs) were retrieved from spectral reflectance data via inversion of the PROSPECT-D radiative transfer model. These data were used to (i) identify key PTs and narrow-band hyperspectral indices (NBHIs) associated with the expression of water stress and (ii) develop classification models based on single-date and multitemporal datasets for the early detection of water stress. A significant decline in soil water content and physiological responses (gs and A) occurred among the trees in the drought treatment in weeks 2 and 4, respectively. Although no significant treatment differences (p > 0.05) were observed in EWT across the whole duration of the experiment, lower mean values in the drought treatment were apparent from week 4 onwards. In contrast, several spectral bands and NBHIs exhibited significant differences the week after water was withheld. The number and category of significant NBHIs varied up to week 4, after which a substantial increase in the number of significant indices was observed until week 10. However, despite this increase, the single-date models did not show good model performance (F1 score > 0.70) until weeks 9 and 10. In contrast, when multitemporal datasets were used, the classification performance ranged from good to outstanding from weeks 2 to 10. This improvement was largely due to the enhanced temporal and feature representation in the multitemporal models. Among the input NBHIs, water indices emerged as the most important predictors, followed by photochemical indices. Furthermore, a comparison of inverted and measured EWT showed good correspondence (mean absolute percentage error (MAPE) = 8.49%, root mean squared error (RMSE) = 0.0026 g/cm2), highlighting the potential use of radiative transfer modelling for high-throughput drought monitoring. Future research is recommended to scale these measurements to the canopy level, which could prove valuable in detecting and characterizing drought stress at a larger scale.
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