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Assessing the impact of limiting Indonesian palm oil exports to the European Union

Author

Listed:
  • Amzul Rifin

    (Bogor Agricultural University)

  • Feryanto

    (Bogor Agricultural University)

  • Herawati

    (Bogor Agricultural University)

  • Harianto

    (Bogor Agricultural University)

Abstract

The latest challenge faced by the Indonesian palm oil industry concerns the Delegated Act that has been adopted to limit the use of palm oil in biofuels because palm oil is considered to not support the sustainable development program. The objective of this article is to assess the suspension of Indonesia’s palm exports to the European Union in terms of Indonesia’s economic conditions. The Global Trade Analysis Project (GTAP) model is used to assess the impact, and the results indicate that the suspension will not create significant impacts on the economic growth, GDP, macro-welfare, and exports and imports of Indonesia.

Suggested Citation

  • Amzul Rifin & Feryanto & Herawati & Harianto, 2020. "Assessing the impact of limiting Indonesian palm oil exports to the European Union," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-13, December.
    • Handle: RePEc:spr:jecstr:v:9:y:2020:i:1:d:10.1186_s40008-020-00202-8
    DOI: 10.1186/s40008-020-00202-8
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    References listed on IDEAS

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    2. Yunus, Mohammad, 2009. "EU Ban, HACCP Compliance and Shrimp Exports from Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 32(3), pages 41-58, September.
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    4. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & George Philippidis, 2016. "Russian Roulette at the Trade Table: A Specific Factors CGE Analysis of an Agri-food Import Ban," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 272-291, June.
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    6. Zornitsa Kutlina-Dimitrova, 2017. "The economic impact of the Russian import ban: a CGE analysis," International Economics and Economic Policy, Springer, vol. 14(4), pages 537-552, October.
    7. Gatto, Marcel & Wollni, Meike & Asnawi, Rosyani & Qaim, Matin, 2017. "Oil Palm Boom, Contract Farming, and Rural Economic Development: Village-Level Evidence from Indonesia," World Development, Elsevier, vol. 95(C), pages 127-140.
    8. Maurice Schiff & L. Alan Winters, 2003. "Regional Integration and Development," World Bank Publications - Books, The World Bank Group, number 15172, December.
    9. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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    Cited by:

    1. Fitri Nurfatriani & Ramawati & Galih Kartika Sari & Wiko Saputra & Heru Komarudin, 2022. "Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme," Land, MDPI, vol. 11(9), pages 1-24, September.
    2. Mustafa Kocoglu & Phouphet Kyophilavong & Ashar Awan & So Young Lim, 2023. "Time-varying causality between oil price and exchange rate in five ASEAN economies," Economic Change and Restructuring, Springer, vol. 56(2), pages 1007-1031, April.
    3. Ariodillah Hidayat & Bernadette Robiani & Taufiq Marwa & Suhel Suhel, 2023. "Competitiveness, Market Structure, and Energy Policies: A Case Study of the World s Largest Crude Palm Oil Exporter," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 111-121, May.

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    Keywords

    Palm oil; European Union; Import;
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