A Household Welfare Perspective on the Expansion of Palm Oil Production in Indonesia
AbstractPalm oil production potentially affects environment, food security and rural development in Indonesia. However, there is little research on the welfare impacts of the production expansion. By using district level data on palm oil production and area planted and national household survey (SUSENAS), this paper studies the impact of the expansion of the palm oil production on household expenditure and health. Instrumental variable estimates exploit the historical production and district forest area as an exogenous source of variation. We find that smallholder production has a negative effect on household expenditure but this effect is not present among rural households. More, total cultivated area increases prevalence of asthma in Kalimantan. The results suggest that palm oil is not a panacea to increase rural welfare and that there is no evidence of positive spillover effects.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, University of Sussex in its series Working Paper Series with number 4212.
Date of creation: Oct 2012
Date of revision:
Contact details of provider:
Postal: Jubilee Building G08, Falmer, Brighton, BN1 9SL
Phone: +44 (0) 1273 678889
Fax: +44 (0)1273 873715
Web page: http://www.sussex.ac.uk/economics
More information through EDIRC
Biofuels; health; household welfare; Indonesia; palm oil;
Find related papers by JEL classification:
- I10 - Health, Education, and Welfare - - Health - - - General
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Russell Eke).
If references are entirely missing, you can add them using this form.