EconPapers    
Economics at your fingertips  
 

Palm oil and the politics of deforestation in Indonesia

Elías Cisneros, Krisztina Kis-Katos and Nunung Nuryartono ()

Journal of Environmental Economics and Management, 2021, vol. 108, issue C

Abstract: This paper studies the interactions between political and economic incentives to foster forest conversion in Indonesian districts. Using a district–level panel data set from 2001 to 2016, we analyze variation in remotely sensed forest losses as well as measures of land-use licensing. We link these outcomes to political incentives arising before idiosyncratically–timed local mayoral elections as well as to price exposure measures based on oil palm soil suitability combined with global price variations for palm oil. Empirical results document increases of about 4% in deforestation in the year prior to local mayoral elections on average. Additionally, palm oil plays a crucial role in driving deforestation dynamics. Deforestation rates increase by 7% in places that experience a one standard deviation increase in local price exposure, but no upcoming elections. These effects are amplified to almost 19% larger forest losses in places that experience pre-election years and a standard deviation higher palm oil price exposure at the same time. We thus find clear evidence for economic and political incentives reinforcing each other as drivers of forest loss and land conversion for oil palm cultivation.

JEL-codes: O13 P16 Q15 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S009506962100036X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Palm oil and the politics of deforestation in Indonesia (2020) Downloads
Working Paper: Palm oil and the politics of deforestation in Indonesia (2020) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:108:y:2021:i:c:s009506962100036x

DOI: 10.1016/j.jeem.2021.102453

Access Statistics for this article

Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates

More articles in Journal of Environmental Economics and Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-11-23
Handle: RePEc:eee:jeeman:v:108:y:2021:i:c:s009506962100036x