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The palm oil dilemma: Policy tensions among higher productivity, rising demand, and deforestation

Author

Listed:
  • Wiebe, Keith D.
  • Sulser, Timothy
  • Pacheco, Pablo
  • De Pinto, Alessandro
  • Mason d'Croz, Daniel
  • Dermawan, Ahmad
  • Thomas, Timothy S.
  • Li, Man
  • Robinson, Sherman
  • Dunston, Shahnila

Abstract

Palm oil production has increased rapidly over the past two decades in response to rising demand for its use in food, energy, and industrial applications. Expansion of oil palm plantations presents a dilemma, as they can displace forests and peatlands, leading to biodiversity losses and increased greenhouse gas emissions. Although projections show that expansion of oil palm area will slow with faster yield growth, important concerns remain that will require careful attention from policymakers.

Suggested Citation

  • Wiebe, Keith D. & Sulser, Timothy & Pacheco, Pablo & De Pinto, Alessandro & Mason d'Croz, Daniel & Dermawan, Ahmad & Thomas, Timothy S. & Li, Man & Robinson, Sherman & Dunston, Shahnila, 2019. "The palm oil dilemma: Policy tensions among higher productivity, rising demand, and deforestation," Policy briefs 9780896296879, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:polbrf:9780896296879
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    Cited by:

    1. Dalheimer, Bernhard & Parikoglou, Iordanis & Brambach, Fabian & Yanita, Mirawati & Kreft, Holger & Brümmer, Bernhard, 2024. "On the palm oil-biodiversity trade-off: Environmental performance of smallholder producers," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    2. Purnomo, Herry & Okarda, Beni & Dermawan, Ahmad & Ilham, Qori Pebrial & Pacheco, Pablo & Nurfatriani, Fitri & Suhendang, Endang, 2020. "Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach," Forest Policy and Economics, Elsevier, vol. 111(C).
    3. Bernhard Dalheimer & Christoph Kubitza & Bernhard Brümmer, 2022. "Technical efficiency and farmland expansion: Evidence from oil palm smallholders in Indonesia," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1364-1387, August.

    More about this item

    Keywords

    palm oils; productivity; supply balance; deforestation; yields; environment; prices; technological changes; markets; palm oil production; palm oil yields; IMPACT model;
    All these keywords.

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