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Economic Dynamics and Forest Clearing: A Spatial Econometric Analysis for Indonesia

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  • David Wheeler
  • Dan Hammer
  • Robin Kraft
  • Susmita Dasgupta
  • Brian Blankespoor

Abstract

This paper uses a large panel database to investigate the determinants of forest clearing in Indonesian kabupatens since 2005. The study incorporates short-run changes in prices and demand for palm oil and wood products, as well as the exchange rate, the real interest rate, land-use zoning, forest protection, the estimated opportunity cost of forested land, the quality of local governance, the poverty rate, population density, the availability of communications infrastructure, transport cost, and local rainfall and terrain slope. [CGD Working Paper 280]. URL:[http://www.cgdev.org/files/1425820_file_Wheeler_et_al_Forest_Clearing_Indonesia.pdf].

Suggested Citation

  • David Wheeler & Dan Hammer & Robin Kraft & Susmita Dasgupta & Brian Blankespoor, 2011. "Economic Dynamics and Forest Clearing: A Spatial Econometric Analysis for Indonesia," Working Papers id:4672, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:4672
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    Cited by:

    1. Cacho, Oscar J. & Milne, Sarah & Gonzalez, Ricardo & Tacconi, Luca, 2014. "Benefits and costs of deforestation by smallholders: Implications for forest conservation and climate policy," Ecological Economics, Elsevier, vol. 107(C), pages 321-332.
    2. Giovanni Millo, 2022. "The generalized spatial random effects model in R," Journal of Spatial Econometrics, Springer, vol. 3(1), pages 1-18, December.
    3. Brian Blankespoor & Susmita Dasgupta & David Wheeler, 2017. "Protected areas and deforestation: new results from high‐resolution panel data," Natural Resources Forum, Blackwell Publishing, vol. 41(1), pages 55-68, February.
    4. Yoon, Jaehyun & Baak, Saang Joon & Seo, Min Young & Kim, Taejong, 2022. "Impacts of Reforestation on Stabilization of Riverine Water Levels in South Korea," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 44(4), pages 1-24.
    5. Troxler, David & Zabel, Astrid & Grêt-Regamey, Adrienne, 2023. "Identifying drivers of forest clearances in Switzerland," Forest Policy and Economics, Elsevier, vol. 150(C).
    6. Everisto Mugocha & Haroon Bhorat, "undated". "Import tariff pass-through effect and the spatial distribution of domestic consumer goods prices: Zimbabwe (2009-2014)," Working Papers 879, Economic Research Southern Africa.
    7. David Wheeler, Robin Kraft, Dan Hammer, 2011. "Forest Clearing in the Pantropics: December 2005–August 2011- Working Paper 283," Working Papers 283, Center for Global Development.
    8. Carr, Jamie A. & Petrokofsky, Gillian & Spracklen, Dominick V. & Lewis, Simon L. & Roe, Dilys & Trull, Nicholas & Vidal, Adriana & Wicander, Sylvia & Worthington-Hill, John & Sallu, Susannah M., 2021. "Anticipated impacts of achieving SDG targets on forests - a review," Forest Policy and Economics, Elsevier, vol. 126(C).
    9. Berman, Nicolas & Couttenier, Mathieu & Leblois, Antoine & Soubeyran, Raphael, 2023. "Crop prices and deforestation in the tropics," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    10. Jonah Busch & Jens Engelmann, 2015. "The Future of Forests: Emissions from Tropical Deforestation With and Without a Carbon Price, 2016-2050," Working Papers id:7819, eSocialSciences.
    11. Miteva, Daniela A. & Pattanayak, Subhrendu K., 2021. "The effectiveness of protected areas in the context of decentralization," World Development, Elsevier, vol. 142(C).
    12. Dasgupta, Susmita & Hammer, Dan & Kraft, Robin & Wheeler, David, 2014. "Vyāghranomics in space and time: Estimating habitat threats for Bengal, Indochinese, Malayan and Sumatran tigers," Journal of Policy Modeling, Elsevier, vol. 36(3), pages 433-453.
    13. Kalifi Ferretti-Gallon and Jonah Busch, 2014. "What Drives Deforestation and What Stops It? A Meta-Analysis of Spatially Explicit Econometric Studies - Working Paper 361," Working Papers 361, Center for Global Development.
    14. Michael Euler & Stefan Schwarze & Hermanto Siregar & Matin Qaim, 2016. "Oil Palm Expansion among Smallholder Farmers in Sumatra, Indonesia," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 658-676, September.
    15. Zhang, Qianwen & Gao, Wujun & Su, Shiliang & Weng, Min & Cai, Zhongliang, 2017. "Biophysical and socioeconomic determinants of tea expansion: Apportioning their relative importance for sustainable land use policy," Land Use Policy, Elsevier, vol. 68(C), pages 438-447.
    16. Gatto, Marcel & Wollni, Meike & Qaim, Matin, 2014. "Oil Palm Boom and Land-Use Dynamics in Indonesia: The Role of Policies and Socioeconomic Factors," EFForTS Discussion Paper Series 6, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    17. Edwards, Ryan B. & Naylor, Rosamond L. & Higgins, Matthew M. & Falcon, Walter P., 2020. "Causes of Indonesia’s forest fires," World Development, Elsevier, vol. 127(C).
    18. Gallemore, Caleb & Guisinger, Amy & Kruuse, Mikkel & Ruysschaert, Denis & Jespersen, Kristjan, 2018. "Escaping the “Teenage” Years: The Politics of Rigor and the Evolution of Private Environmental Standards," Ecological Economics, Elsevier, vol. 152(C), pages 76-87.
    19. Wang, Haoluan & Qiu, Feng, 2017. "Investigating the Impact of Agricultural Land Losses on Deforestation: Evidence From a Peri-urban Area in Canada," Ecological Economics, Elsevier, vol. 139(C), pages 9-18.
    20. Brenneis, Karina & Edison, Edi & Asnawi, Rosyani & Wollni, Meike, 2022. "Environmental concern and pro-environmental behavior among residents in an oil palm cultivating hotspot," EFForTS Discussion Paper Series 35, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    21. Suwarno, Aritta & Hein, Lars & Sumarga, Elham, 2015. "Governance, Decentralisation and Deforestation: The Case of Central Kalimantan Province, Indonesia," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 54(1), pages 1-24, February.
    22. Krishna, Vijesh V. & Pascual, Unai & Qaim, Matin, 2014. "Do emerging land markets promote forestland appropriation? Evidence from Indonesia," EFForTS Discussion Paper Series 7, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    23. Marcos-Martinez, Raymundo & Bryan, Brett A. & Schwabe, Kurt A. & Connor, Jeffery D. & Law, Elizabeth A., 2018. "Forest transition in developed agricultural regions needs efficient regulatory policy," Forest Policy and Economics, Elsevier, vol. 86(C), pages 67-75.
    24. Clark Lundberg & Ryan Abman, 2022. "Maize price volatility and deforestation," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(2), pages 693-716, March.
    25. Ryan Edwards, 2015. "Is plantation agriculture good for the poor? Evidence from Indonesia's palm oil expansion," Departmental Working Papers 2015-12, The Australian National University, Arndt-Corden Department of Economics.

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