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Economic Development, Food Demand and the Consequences for Agricultural Resource Requirements (Indonesia)

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  • Briggs, Adam
  • Chowdhury, Shyamal

Abstract

We analyse food demand patterns of Indonesian households from a resource intensity perspective, and quantify the impact of changed demand patterns on the use of three major resource inputs – fossil fuel, land and water – in agricultural production. Using Indonesian Family Life Survey (IFLS) data, 13 major food items (which constitute 70% of food expenditure) are categorised into low, moderate and high resource intensity, and income elasticity and Engel curves are estimated for the period from 1997 to 2007. Our results show that income growth in Indonesia is associated with demand patterns that are more resource intensive. By 2007, per capita requirements of fossil fuel, land and water increased by 42.7% (3.13 MJ), 44.9% (1.24 m2) and 50.4% (2.1 KL) respectively relative to 1997. The results imply that at least for Indonesia, changed food demand patterns resulting from economic development will increase the demand for natural resources substantially.

Suggested Citation

  • Briggs, Adam & Chowdhury, Shyamal, 2015. "Economic Development, Food Demand and the Consequences for Agricultural Resource Requirements (Indonesia)," 2015 Conference, August 9-14, 2015, Milan, Italy 211538, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211538
    DOI: 10.22004/ag.econ.211538
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    More about this item

    Keywords

    Consumer/Household Economics; Food Consumption/Nutrition/Food Safety;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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