Do emerging land markets promote forestland appropriation? Evidence from Indonesia

Vijesh Krishna, Unai Pascual and Matin Qaim

No 7, EFForTS Discussion Paper Series from University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)"

Abstract: This paper empirically examines the emergence and functioning of land markets and their impacts on deforestation in Sumatra, Indonesia. While the evolution of land markets is expected to promote deforestation activities by rural households, we find no sizeable impact, due to two major reasons. First, land transactions occur in cultural and spatial isolation from forest encroachment. Second, the emergence of speculative land markets, which could accelerate deforestation, is evaded through institutional constraints, primarily weak property rights on land. However, while land markets do not promote deforestation, they also do not deter forestland appropriation, because of ambiguous legal frameworks.

Keywords: Forest conservation; Indonesia; Land resources; Plantation crops; Property rights; Open access (search for similar items in EconPapers)
JEL-codes: O13 Q12 Q15 Q23 R14 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-agr, nep-env and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:crc990:7

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