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Evolution of land tenure institutions and development of agroforestry: evidence from customary land areas of Sumatra

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  • Keijiro Otsuka
  • S. Suyanto
  • Tetsushi Sonobe
  • Thomas P. Tomich

Abstract

It is widely believed that land tenure insecurity under a customary tenure system leads to a socially inefficient resource allocation. This article demonstrates that the practice of granting secure individual ownership to tree planters spurs earlier tree planting, which is inefficient from the private point of view but could be efficient from the viewpoint of the global environment. Regression analysis, based on primary data collected in Sumatra, indicates that an expected increase in tenure security in fact led to early tree planting. It is also found that customary land tenure institutions have been evolving towards greater tenure security responding to increasing scarcity of land.

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  • Keijiro Otsuka & S. Suyanto & Tetsushi Sonobe & Thomas P. Tomich, 2000. "Evolution of land tenure institutions and development of agroforestry: evidence from customary land areas of Sumatra," Agricultural Economics, International Association of Agricultural Economists, vol. 25(1), pages 85-101, June.
    • Handle: RePEc:bla:agecon:v:25:y:2000:i:1:p:85-101
    DOI: 10.1111/j.1574-0862.2001.tb00237.x
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    2. Dinh, Hoang Huu & Nguyen, Trung Thanh & Hoang, Viet-Ngu & Wilson, Clevo, 2017. "Economic incentive and factors affecting tree planting of rural households: Evidence from the Central Highlands of Vietnam," Journal of Forest Economics, Elsevier, vol. 29(PA), pages 14-24.
    3. Quisumbing, Agnes R. & Otsuka, Keijiro, 2001. "Land Inheritance and Schooling in Matrilineal Societies: Evidence from Sumatra," World Development, Elsevier, vol. 29(12), pages 2093-2110, December.
    4. Chris D. Arnot & Martin K. Luckert & Peter C. Boxall, 2011. "What Is Tenure Security? Conceptual Implications for Empirical Analysis," Land Economics, University of Wisconsin Press, vol. 87(2), pages 297-311.
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    7. M. Casari & M. Lisciandra, 2013. "Gender Discrimination in Property Rights," Working Papers wp914, Dipartimento Scienze Economiche, Universita' di Bologna.
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    9. Wilkerson, Marit L. & Mitchell, Matthew G.E. & Shanahan, Danielle & Wilson, Kerrie A. & Ives, Christopher D. & Lovelock, Catherine E. & Rhodes, Jonathan R., 2018. "The role of socio-economic factors in planning and managing urban ecosystem services," Ecosystem Services, Elsevier, vol. 31(PA), pages 102-110.
    10. Kimura, Yuichi, 2021. "Shackles of Kinship Bonds: Land Tenure Institutions and Smallholders' Farm Investments in Ghana," 2021 Conference, August 17-31, 2021, Virtual 315049, International Association of Agricultural Economists.
    11. Quisumbing, Agnes R. & Payongayong, Ellen M. & Otsuka, Keijiro, 2004. "Are wealth transfers biased against girls?," FCND briefs 186, International Food Policy Research Institute (IFPRI).
    12. Nkamleu, Guy Blaise & Keho, Yaya & Gockowski, James & David, Soniia, 2007. "Investing in agrochemicals in the cocoa sector of Côte d’Ivoire: Hypotheses, evidence and policy implications," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 1(2), pages 1-22, September.
    13. Zhang, Daowei & Aboagye Owiredu, Eric, 2007. "Land tenure, market, and the establishment of forest plantations in Ghana," Forest Policy and Economics, Elsevier, vol. 9(6), pages 602-610, February.
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    15. Lila Juniyanti & Herry Purnomo & Hariadi Kartodihardjo & Lilik Budi Prasetyo, 2021. "Understanding the Driving Forces and Actors of Land Change Due to Forestry and Agricultural Practices in Sumatra and Kalimantan: A Systematic Review," Land, MDPI, vol. 10(5), pages 1-24, April.
    16. Meili Huan & Shaoguo Zhan, 2022. "Agricultural Production Services, Farm Size and Chemical Fertilizer Use in China’s Maize Production," Land, MDPI, vol. 11(11), pages 1-17, October.
    17. Hoang Huu Dinh & Shyam Basnet & Justus Wesseler, 2023. "Impact of Land Tenure Security Perception on Tree Planting Investment in Vietnam," Land, MDPI, vol. 12(2), pages 1-23, February.
    18. Elisabeth Hettig & Jann Lay & Kacana Sipangule, 2016. "Drivers of Households’ Land-Use Decisions: A Critical Review of Micro-Level Studies in Tropical Regions," Land, MDPI, vol. 5(4), pages 1-32, October.
    19. Maharani, Cynthia D. & Moeliono, Moira & Wong, Grace Y. & Brockhaus, Maria & Carmenta, Rachel & Kallio, Maarit, 2019. "Development and equity: A gendered inquiry in a swidden landscape," Forest Policy and Economics, Elsevier, vol. 101(C), pages 120-128.
    20. Suyanto, S. & Tomich, Thomas P. & Otsuka, Keijiro, 2001. "Land tenure and farm management efficiency: the case of paddy and cinnamon production in customary land areas of Sumatra," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(3), pages 1-26.
    21. Berloffa, Gabriella & Modena, Francesca, 2013. "Income shocks, coping strategies, and consumption smoothing: An application to Indonesian data," Journal of Asian Economics, Elsevier, vol. 24(C), pages 158-171.
    22. Resosudarmo, Ida Aju Pradnja & Atmadja, Stibniati & Ekaputri, Andini Desita & Intarini, Dian Y. & Indriatmoko, Yayan & Astri, Pangestuti, 2014. "Does Tenure Security Lead to REDD+ Project Effectiveness? Reflections from Five Emerging Sites in Indonesia," World Development, Elsevier, vol. 55(C), pages 68-83.
    23. Kimura, Yuichi, 2023. "Why are overlapping land rights disincentive against investment in agriculture?: customary land tenure institution in West Africa," MPRA Paper 116613, University Library of Munich, Germany.
    24. Xie, Yi & Wen, Yali & Zhang, Yaoqi & Li, Xiaoyong, 2013. "Impact of property rights reform on household forest management investment: An empirical study of southern China," Forest Policy and Economics, Elsevier, vol. 34(C), pages 73-78.
    25. Guoqun Ma & Danyang Lv & Tuanbiao Jiang & Yuxi Luo, 2023. "Can Land Transfer Promote Agricultural Green Transformation? The Empirical Evidence from China," Sustainability, MDPI, vol. 15(18), pages 1-17, September.

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