IDEAS home Printed from https://ideas.repec.org/a/lpe/efijnl/202113.html

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
    as

    Download full text from publisher

    File URL: https://lpem.org/repec/lpe/efijnl/202113.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Santos, Augusto Seabra & Almeida, Alexandre N., 2018. "The Impact of Deforestation on Malaria Infections in the Brazilian Amazon," Ecological Economics, Elsevier, vol. 154(C), pages 247-256.
    2. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
    3. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    4. E. B. Barbier & J. C. Burgess, 2001. "The Economics of Tropical Deforestation," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 413-433, July.
    5. Obidzinski, Krystof & Dermawan, Ahmad & Andrianto, Agus & Komarudin, Heru & Hernawan, Dody, 2014. "The timber legality verification system and the voluntary partnership agreement (VPA) in Indonesia: Challenges for the small-scale forestry sector," Forest Policy and Economics, Elsevier, vol. 48(C), pages 24-32.
    6. Hiroyuki Taguchi, 2012. "The Environmental Kuznets Curve in Asia: the case of sulphur and carbon emissions," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 19(2), pages 77-92, December.
    7. Culas, Richard J., 2007. "Deforestation and the environmental Kuznets curve: An institutional perspective," Ecological Economics, Elsevier, vol. 61(2-3), pages 429-437, March.
    8. Bhattarai, Madhusudan & Hammig, Michael, 2001. "Institutions and the Environmental Kuznets Curve for Deforestation: A Crosscountry Analysis for Latin America, Africa and Asia," World Development, Elsevier, vol. 29(6), pages 995-1010, June.
    9. Austin, K.G. & Mosnier, A. & Pirker, J. & McCallum, I. & Fritz, S. & Kasibhatla, P.S., 2017. "Shifting patterns of oil palm driven deforestation in Indonesia and implications for zero-deforestation commitments," Land Use Policy, Elsevier, vol. 69(C), pages 41-48.
    10. List, John A. & Gallet, Craig A., 1999. "The environmental Kuznets curve: does one size fit all?," Ecological Economics, Elsevier, vol. 31(3), pages 409-423, December.
    11. Sunderlin, William D. & de Sassi, Claudio & Sills, Erin O. & Duchelle, Amy E. & Larson, Anne M. & Resosudarmo, Ida Aju Pradnja & Awono, Abdon & Kweka, Demetrius Leo & Huynh, Thu Ba, 2018. "Creating an appropriate tenure foundation for REDD+: The record to date and prospects for the future," World Development, Elsevier, vol. 106(C), pages 376-392.
    12. repec:bla:jecsur:v:15:y:2001:i:3:p:413-33 is not listed on IDEAS
    13. Rivayani Darmawan & Stephan Klasen & Nunung Nuryartono, 2015. "Migration and Deforestation in Indonesia," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 187, Courant Research Centre PEG.
    14. Angelsen, Arild & Kaimowitz, David, 1999. "Rethinking the Causes of Deforestation: Lessons from Economic Models," The World Bank Research Observer, World Bank, vol. 14(1), pages 73-98, February.
    15. Wehkamp, Johanna & Koch, Nicolas & Lübbers, Sebastian & Fuss, Sabine, 2018. "Governance and deforestation — a meta-analysis in economics," Ecological Economics, Elsevier, vol. 144(C), pages 214-227.
    16. Choumert, Johanna & Combes Motel, Pascale & Dakpo, Hervé K., 2013. "Is the Environmental Kuznets Curve for deforestation a threatened theory? A meta-analysis of the literature," Ecological Economics, Elsevier, vol. 90(C), pages 19-28.
    17. Edward B. Barbier, 2004. "Water and Economic Growth," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 1-16, March.
    18. N. Bockstael & J.C. Burgess & I. Strand, 1998. "The linkages between the timber trade and tropical deforestation – Indonesia," Chapters, in: The Economics of Environment and Development, chapter 20, pages 444-475, Edward Elgar Publishing.
    19. Krishna, Vijesh V. & Kubitza, Christoph & Pascual, Unai & Qaim, Matin, 2017. "Land markets, Property rights, and Deforestation: Insights from Indonesia," World Development, Elsevier, vol. 99(C), pages 335-349.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abdul Hayy Haziq Mohamad & Muhammad Hafiz bin Muhammad Hisham & Salfarina Abdul Gapor, 2025. "Indonesia: Comparison Between the Most Consumption of Renewable and Non-Renewable Energy Toward CO2 Emissions," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(5), pages 260-279, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boris OK Lokonon & Ichaou Mounirou, 2019. "Does foreign direct investment impede forest area in Sub‐Saharan Africa?," Natural Resources Forum, Blackwell Publishing, vol. 43(4), pages 230-240, November.
    2. Novice Patrick Bakehe, 2020. "L'accès à l’électricité: une solution pour réduire la déforestation en Afrique?," African Development Review, African Development Bank, vol. 32(3), pages 338-348, September.
    3. Okon Emmanuel O., 2021. "Nigeria: Is There an Environmental Kuznets Curve for Fluorinated Gases?," Open Economics, De Gruyter, vol. 4(1), pages 57-71, January.
    4. Ajanaku, B.A. & Collins, A.R., 2021. "Economic growth and deforestation in African countries: Is the environmental Kuznets curve hypothesis applicable?," Forest Policy and Economics, Elsevier, vol. 129(C).
    5. Leblois, Antoine & Damette, Olivier & Wolfersberger, Julien, 2017. "What has Driven Deforestation in Developing Countries Since the 2000s? Evidence from New Remote-Sensing Data," World Development, Elsevier, vol. 92(C), pages 82-102.
    6. Mina Baliamoune-Lutz, 2017. "Trade and Environmental Quality in African Countries: Do Institutions Matter?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(1), pages 155-172, January.
    7. ITALO ARBULÚ VILLANUEVA Author-Workplace-Name: Málaga-Webb & Asociados, 2012. "Introducing Institutional Variables In The Environmental Kuznets Curve (Ekc): A Latin American Study," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 71-81, March.
    8. Sabuj Kumar Mandal & Devleena Chakravarty, 2017. "Role of energy in estimating turning point of Environmental Kuznets Curve: an econometric analysis of the existing studies," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(2), pages 387-401, October.
    9. Bi Goli Jean Jacques Iritie, 2015. "Economic Growth and Biodiversity: An Overview Conservation Policies in Africa," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 8(2), pages 196-196, February.
    10. Salahodjaev, Raufhon, 2016. "Intelligence and deforestation: International data," Forest Policy and Economics, Elsevier, vol. 63(C), pages 20-27.
    11. Jean-Louis Combes & Pascale Combes Motel & Philippe Delacote, 2014. "Public expenses, credit and natural capital: Substitution or complementarity?," Working Papers halshs-00979191, HAL.
    12. Barros, Pedro Henrique Batista de & Chimeli, Ariaster Baumgratz, 2025. "Can economic development and forest conservation coexist? Revisiting growth and deforestation in the Brazilian Amazon," World Development, Elsevier, vol. 195(C).
    13. Novice Patrick Bakehe, 2019. "The effects of migrant remittances on deforestation in the Congo basin," Economics Bulletin, AccessEcon, vol. 39(4), pages 2361-2373.
    14. Combes, J.-L. & Combes Motel, P. & Minea, A. & Villieu, P., 2015. "Deforestation and seigniorage in developing countries: A tradeoff?," Ecological Economics, Elsevier, vol. 116(C), pages 220-230.
    15. Nguyen Van, Phu & Azomahou, Theophile, 2007. "Nonlinearities and heterogeneity in environmental quality: An empirical analysis of deforestation," Journal of Development Economics, Elsevier, vol. 84(1), pages 291-309, September.
    16. Ajanaku, Bolarinwa & Collins, Alan R., 2020. "Economic growth and deforestation in developing countries: Is the Environmental Kuznets Curve Hypothesis Still Applicable? Evidence from a Panel of Selected African Countries," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304271, Agricultural and Applied Economics Association.
    17. A. Kahuthu, 2006. "Economic Growth and Environmental Degradation in a Global Context," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 8(1), pages 55-68, February.
    18. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    19. Laetitia Duval & François-Charles Wolff, 2009. "L'effet des transferts migratoires sur la déforestation dans les pays en développement," Working Papers hal-00421222, HAL.
    20. Pablo-Romero, María P. & Sánchez-Braza, Antonio & Gil-Pérez, Jesús, 2023. "Is deforestation needed for growth? Testing the EKC hypothesis for Latin America," Forest Policy and Economics, Elsevier, vol. 148(C).

    More about this item

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lpe:efijnl:202113. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Halley Yudhistira The email address of this maintainer does not seem to be valid anymore. Please ask Muhammad Halley Yudhistira to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/feuinid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.