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The Environmental Kuznets Curve for Deforestation in Indonesia

Author

Listed:
  • Dara Aila

    (Department of Economics, IPB University, Indonesia & School of Economics, The University of Adelaide, Australia & Al-Hilal Institute of Higher Learning Sigli, Aceh.)

  • Nunung Nuryartono

    (School of Economics, The University of Adelaide, Australia.)

  • Mandar Oak

    (School of Economics, The University of Adelaide, Australia.)

Abstract

This study provides empirical findings on the relationship between deforestation and income in 32 provinces in Indonesia. To enrich the discussion on deforestation, this study investigates the impact of the factors of population, roundwood production, land area, and main crop production on deforestation. The selected main crops in Indonesia are oil palm, coffee, coconut, rubber, and cacao. The results confirm the existence of the EKC relationship between deforestation and income in Indonesia. The study also finds that oil palm production positively affects tree cover loss, but the production of natural rubber has the opposite impact on deforestation.

Suggested Citation

  • Dara Aila & Nunung Nuryartono & Mandar Oak, 2021. "The Environmental Kuznets Curve for Deforestation in Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 67, pages 195-211, Desember.
    • Handle: RePEc:lpe:efijnl:202113
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    References listed on IDEAS

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    More about this item

    Keywords

    Indonesia; deforestation; tree cover loss; EKC; agriculture;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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