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Forest change and agricultural productivity: Evidence from Indonesia

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  • Yamamoto, Yuki
  • Shigetomi, Yosuke
  • Ishimura, Yuichi
  • Hattori, Mitsuru

Abstract

We examine the effect of forest cover change on agricultural productivity using household panel data and remote sensing data on forest change. The focus of the study is rural Indonesia, where deforestation is causing intensive biodiversity loss while agriculture is the main industry. We estimate an agricultural production function and find that farmers in rural Indonesia experienced a reduction in agricultural productivity of 45% between 2001 and 2014 or US$2.63 billion in 2014. In addition, we explore the mechanisms underlying the productivity loss and find that biological pest control is the most plausible explanation.

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  • Yamamoto, Yuki & Shigetomi, Yosuke & Ishimura, Yuichi & Hattori, Mitsuru, 2019. "Forest change and agricultural productivity: Evidence from Indonesia," World Development, Elsevier, vol. 114(C), pages 196-207.
    • Handle: RePEc:eee:wdevel:v:114:y:2019:i:c:p:196-207
    DOI: 10.1016/j.worlddev.2018.10.001
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    1. Herdis Herdiansyah & Ernoiz Antriyandarti & Amrina Rosyada & Nor Isnaeni Dwi Arista & Tri Edhi Budhi Soesilo & Ninin Ernawati, 2023. "Evaluation of Conventional and Mechanization Methods towards Precision Agriculture in Indonesia," Sustainability, MDPI, vol. 15(12), pages 1-21, June.
    2. Jun Harbi & Yukun Cao & Noril Milantara & Gamin & Ade Brian Mustafa & Nathan James Roberts, 2021. "Understanding People−Forest Relationships: A Key Requirement for Appropriate Forest Governance in South Sumatra, Indonesia," Sustainability, MDPI, vol. 13(13), pages 1-22, June.
    3. Jun Wang & Lichun Sui & Xiaomei Yang & Zhihua Wang & Dazhuan Ge & Junmei Kang & Fengshuo Yang & Yueming Liu & Bin Liu, 2019. "Economic Globalization Impacts on the Ecological Environment of Inland Developing Countries: A Case Study of Laos from the Perspective of the Land Use/Cover Change," Sustainability, MDPI, vol. 11(14), pages 1-21, July.
    4. Jianxu Liu & Mengjiao Wang & Li Yang & Sanzidur Rahman & Songsak Sriboonchitta, 2020. "Agricultural Productivity Growth and Its Determinants in South and Southeast Asian Countries," Sustainability, MDPI, vol. 12(12), pages 1-21, June.
    5. Yamamoto, Yuki, 2023. "Living under ecosystem degradation: Evidence from the mangrove–fishery linkage in Indonesia," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    6. Aryo Adhi Condro & Yudi Setiawan & Lilik Budi Prasetyo & Rahmat Pramulya & Lasriama Siahaan, 2020. "Retrieving the National Main Commodity Maps in Indonesia Based on High-Resolution Remotely Sensed Data Using Cloud Computing Platform," Land, MDPI, vol. 9(10), pages 1-15, October.

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