IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v114y2019icp196-207.html
   My bibliography  Save this article

Forest change and agricultural productivity: Evidence from Indonesia

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X18303875
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2018.10.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Neil McCulloch & Julian Weisbrod & C. Peter Timmer, 2007. "Pathways out of poverty during an economic crisis: An empirical assessment of rural Indonesia," Departmental Discussion Papers 131, University of Goettingen, Department of Economics.
    2. Euler, Michael & Krishna, Vijesh & Schwarze, Stefan & Siregar, Hermanto & Qaim, Matin, 2017. "Oil Palm Adoption, Household Welfare, and Nutrition Among Smallholder Farmers in Indonesia," World Development, Elsevier, vol. 93(C), pages 219-235.
    3. L'Roe, Jessica & Naughton-Treves, Lisa, 2014. "Effects of a policy-induced income shock on forest-dependent households in the Peruvian Amazon," Ecological Economics, Elsevier, vol. 97(C), pages 1-9.
    4. Costanza, Robert & de Groot, Rudolf & Braat, Leon & Kubiszewski, Ida & Fioramonti, Lorenzo & Sutton, Paul & Farber, Steve & Grasso, Monica, 2017. "Twenty years of ecosystem services: How far have we come and how far do we still need to go?," Ecosystem Services, Elsevier, vol. 28(PA), pages 1-16.
    5. Donald F. Larson & Keijiro Otsuka & Tomoya Matsumoto & Talip Kilic, 2014. "Should African rural development strategies depend on smallholder farms? An exploration of the inverse-productivity hypothesis," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 355-367, May.
    6. Vedeld, Paul & Angelsen, Arild & Bojo, Jan & Sjaastad, Espen & Kobugabe Berg, Gertrude, 2007. "Forest environmental incomes and the rural poor," Forest Policy and Economics, Elsevier, vol. 9(7), pages 869-879, April.
    7. de Groot, Rudolf & Brander, Luke & van der Ploeg, Sander & Costanza, Robert & Bernard, Florence & Braat, Leon & Christie, Mike & Crossman, Neville & Ghermandi, Andrea & Hein, Lars & Hussain, Salman & , 2012. "Global estimates of the value of ecosystems and their services in monetary units," Ecosystem Services, Elsevier, vol. 1(1), pages 50-61.
    8. Erik Olbrei & Stephen Howes, 2012. "A Very Real and Practical Contribution? - Lessons from the Kalimantan Forests and Climate Partnership," Development Policy Centre Discussion Papers 1216, Development Policy Centre, Crawford School of Public Policy, The Australian National University.
    9. Mugido, Worship & Shackleton, Charlie M., 2018. "Price Determination of Non-timber Forest Products in Different Areas of South Africa," Ecological Economics, Elsevier, vol. 146(C), pages 597-606.
    10. David Pimentel, 2005. "‘Environmental and Economic Costs of the Application of Pesticides Primarily in the United States’," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 7(2), pages 229-252, June.
    11. Angelsen, Arild & Jagger, Pamela & Babigumira, Ronnie & Belcher, Brian & Hogarth, Nicholas J. & Bauch, Simone & Börner, Jan & Smith-Hall, Carsten & Wunder, Sven, 2014. "Environmental Income and Rural Livelihoods: A Global-Comparative Analysis," World Development, Elsevier, vol. 64(S1), pages 12-28.
    12. 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.
    13. Singh, Gajendra & Rawat, G.S. & Verma, Deepti, 2010. "Comparative study of fuelwood consumption by villagers and seasonal "Dhaba owners" in the tourist affected regions of Garhwal Himalaya, India," Energy Policy, Elsevier, vol. 38(4), pages 1895-1899, April.
    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. Amadu, Festus O. & Miller, Daniel C., 2024. "The impact of forest product collection and processing on household income in rural Liberia," Forest Policy and Economics, Elsevier, vol. 158(C).
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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).
    7. 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.

    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. Rasmussen, Laura Vang & Watkins, Cristy & Agrawal, Arun, 2017. "Forest contributions to livelihoods in changing agriculture-forest landscapes," Forest Policy and Economics, Elsevier, vol. 84(C), pages 1-8.
    2. Nuhu, Ahmed Salim & Liverpool-Tasie, Lenis Saweda O. & Awokuse, Titus & Kabwe, Stephen, 2021. "Do benefits of expanded midstream activities in crop value chains accrue to smallholder farmers? Evidence from Zambia," World Development, Elsevier, vol. 143(C).
    3. Dehghani Pour, Milad & Motiee, Naser & Barati, Ali Akbar & Taheri, Fatemeh & Azadi, Hossein & Gebrehiwot, Kindeya & Lebailly, Philippe & Van Passel, Steven & Witlox, Frank, 2017. "Impacts of the Hara Biosphere Reserve on Livelihood and Welfare in Persian Gulf," Ecological Economics, Elsevier, vol. 141(C), pages 76-86.
    4. De Oñate-Calvín, Ruth & Oviedo, José L. & Salo, Matti, 2018. "Forest Resource-based Household Economy in the Communities of the Nanay River Basin, Peruvian Amazonia," Ecological Economics, Elsevier, vol. 146(C), pages 218-227.
    5. Mugido, Worship & Shackleton, Charlie M., 2019. "The contribution of NTFPS to rural livelihoods in different agro-ecological zones of South Africa," Forest Policy and Economics, Elsevier, vol. 109(C).
    6. Dai, Xuhuan & Li, Bo & Zheng, Hua & Yang, Yanzheng & Yang, Zihan & Peng, Chenchen, 2023. "Can sedentarization decrease the dependence of pastoral livelihoods on ecosystem services?," Ecological Economics, Elsevier, vol. 203(C).
    7. Bierkamp, Sina & Nguyen, Trung Thanh & Grote, Ulrike, 2021. "Environmental income and remittances: Evidence from rural central highlands of Vietnam," Ecological Economics, Elsevier, vol. 179(C).
    8. Begazo Curie, Karin & Mertens, Kewan & Vranken, Liesbet, 2021. "Tenure regimes and remoteness: When does forest income reduce poverty and inequality? A case study from the Peruvian Amazon," Forest Policy and Economics, Elsevier, vol. 128(C).
    9. Madsen, Sofia Topcu & Smith-Hall, Carsten, 2023. "Wild harvesting or cultivation of commercial environmental products: A theoretical model and its application to medicinal plants," Ecological Economics, Elsevier, vol. 205(C).
    10. Mikkel Kruuse & Kasper Reming Tangbæk & Kristjan Jespersen & Caleb Gallemore, 2019. "Navigating Input and Output Legitimacy in Multi-Stakeholder Initiatives: Institutional Stewards at Work," Sustainability, MDPI, vol. 11(23), pages 1-27, November.
    11. Pathak, Ravi & Thakur, Shinny & Negi, Vikram S. & Rawal, Ranbeer S. & Bahukhandi, Amit & Durgapal, Kamini & Barola, Anjali & Tewari, Deep & Bhatt, Indra D., 2021. "Ecological condition and management status of Community Forests in Indian western Himalaya," Land Use Policy, Elsevier, vol. 109(C).
    12. Bennett, Aoife & Ravikumar, Ashwin & Paltán, Homero, 2018. "The Political Ecology of Oil Palm Company-Community partnerships in the Peruvian Amazon: Deforestation consequences of the privatization of rural development," World Development, Elsevier, vol. 109(C), pages 29-41.
    13. Hérivaux, Cécile & Grémont, Marine, 2019. "Valuing a diversity of ecosystem services: The way forward to protect strategic groundwater resources for the future?," Ecosystem Services, Elsevier, vol. 35(C), pages 184-193.
    14. Santika, Truly & Wilson, Kerrie A. & Budiharta, Sugeng & Law, Elizabeth A. & Poh, Tun Min & Ancrenaz, Marc & Struebig, Matthew J. & Meijaard, Erik, 2019. "Does oil palm agriculture help alleviate poverty? A multidimensional counterfactual assessment of oil palm development in Indonesia," World Development, Elsevier, vol. 120(C), pages 105-117.
    15. Riyong Kim Bakkegaard & Martin Reinhardt Nielsen & Bo Jellesmark Thorsen, 2017. "Household determinants of bushmeat and eru (Gnetum africanum) harvesting for cash in the Democratic Republic of Congo," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(4), pages 1425-1443, August.
    16. Luo, Xiangyu & Jiang, Peng & Yang, Jingyi & Jin, Jing & Yang, Jun, 2021. "Simulating PM2.5 removal in an urban ecosystem based on the social-ecological model framework," Ecosystem Services, Elsevier, vol. 47(C).
    17. Meilby, Henrik & Smith-Hall, Carsten & Byg, Anja & Larsen, Helle Overgaard & Nielsen, Øystein Juul & Puri, Lila & Rayamajhi, Santosh, 2014. "Are Forest Incomes Sustainable? Firewood and Timber Extraction and Productivity in Community Managed Forests in Nepal," World Development, Elsevier, vol. 64(S1), pages 113-124.
    18. Chrisendo, Daniel & Siregar, Hermanto & Qaim, Matin, 2022. "Oil palm cultivation improves living standards and human capital formation in smallholder farm households," World Development, Elsevier, vol. 159(C).
    19. Watmough, Gary R. & Atkinson, Peter M. & Saikia, Arupjyoti & Hutton, Craig W., 2016. "Understanding the Evidence Base for Poverty–Environment Relationships using Remotely Sensed Satellite Data: An Example from Assam, India," World Development, Elsevier, vol. 78(C), pages 188-203.
    20. Kiefer, Katharina & Kremer, Jasper & Zeitner, Philipp & Winkler, Bastian & Wagner, Moritz & von Cossel, Moritz, 2023. "Monetizing ecosystem services of perennial wild plant mixtures for bioenergy," Ecosystem Services, Elsevier, vol. 61(C).

    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:eee:wdevel:v:114:y:2019:i:c:p:196-207. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    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.