Differential livelihood impacts of oil palm expansion in Indonesia
2017 | journal article; research paper. A publication with affiliation to the University of Göttingen.
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- Authors
- Krishna, Vijesh ; Euler, Michael ; Siregar, Hermanto; Qaim, Matin
- Abstract
- In this article, the impacts of oil palm adoption on livelihoods of smallholder farm households are analyzed. The study builds on survey data from Sumatra, Indonesia. Treatment-effects and endogenous switching regression models suggest that smallholder households benefit from oil palm adoption on average. Part of the benefit stems from the fact that oil palm requires less labor than rubber, the main alternative crop. This allows oil palm adopters to allocate more labor to off-farm activities and/or to expand their farmland. For households with a low land-to-labor ratio, rubber is typically a more lucrative crop than oil palm. Depending on various social and institutional factors, households’ access to land, labor, and capital varies, contributing to impact heterogeneity. Welfare gains associated with oil palm are more pronounced among households that have formal land titles and access to additional land to expand their farm size during the process of adoption.
- Issue Date
- 2017
- Journal
- Agricultural Economics
- Project
- SFB 990: Ökologische und sozioökonomische Funktionen tropischer Tieflandregenwald-Transformationssysteme (Sumatra, Indonesien)
SFB 990 | C | C07: Einflussfaktoren von Landnutzungswandel und sozioökonomische Auswirkungen für ländliche Haushalte - Organization
- Department für Agrarökonomie und Rurale Entwicklung
- ISSN
- 0169-5150; 0169-5150
- Language
- English
- Subject(s)
- sfb990_journalarticles