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Do emerging land markets promote forestland appropriation? Evidence from Indonesia

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  • Krishna, Vijesh V.
  • Pascual, Unai
  • Qaim, Matin

Abstract

This paper empirically examines the emergence and functioning of land markets and their impacts on deforestation in Sumatra, Indonesia. While the evolution of land markets is expected to promote deforestation activities by rural households, we find no sizeable impact, due to two major reasons. First, land transactions occur in cultural and spatial isolation from forest encroachment. Second, the emergence of speculative land markets, which could accelerate deforestation, is evaded through institutional constraints, primarily weak property rights on land. However, while land markets do not promote deforestation, they also do not deter forestland appropriation, because of ambiguous legal frameworks.

Suggested Citation

  • 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)".
    • Handle: RePEc:zbw:crc990:7
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    Cited by:

    1. Krishna, Vijesh V. & Euler, Michael & Siregar, Hermanto & Fathoni, Zakky & Qaim, Matin, 2015. "Farmer heterogeneity and differential livelihood impacts of oil palm expansion among smallholders in Sumatra, Indonesia," EFForTS Discussion Paper Series 13, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    2. Dislich, Claudia & Hettig, Elisabeth & Heinonen, Johannes & Lay, Jann & Meyer, Katrin M. & Tarigan, Suria & Wiegand, Kerstin, 2015. "Towards an integrated ecological-economic land-use change model," EFForTS Discussion Paper Series 17, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    3. 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.
    4. 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.
    5. Sibhatu, Kibrom T. & Krishna, Vijesh V. & Qaim, Matin, 2015. "Farm Production Diversity and Dietary Diversity in Developing Countries," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205286, Agricultural and Applied Economics Association.
    6. Krishna, Vijesh & Euler, Michael & Siregar, Hermanto & Qaim, Matin, 2016. "Farmer heterogeneity and differential livelihood impacts of oil palm expansion in Sumatra, Indonesia," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235218, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Forest conservation; Indonesia; Land resources; Plantation crops; Property rights; Open access;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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