The Environmental Kuznets Curve for Deforestation in Indonesia

Dara Adila, Nunung Nuryartono, Mandar Oak

Abstract

This study provides empirical findings on the relationship between deforestation and income in 32 provinces in Indonesia. To enrich the discussion on deforestation, this study investigates the impact of the factors of population, roundwood production, land area, and main crop production on deforestation. The selected main crops in Indonesia are oil palm, coffee, coconut, rubber, and cacao. The results confirm the existence of the EKC relationship between deforestation and income in Indonesia. The study also finds that oil palm production positively affects tree cover loss, but the production of natural rubber has the opposite impact on deforestation.

Keywords

Indonesia; deforestation; tree cover loss; EKC; agriculture

Full Text:

PDF

References

Adila, N, Sasidhran, S, Kamarudin, N, Puan, CL, Azhar, B, & Lindenmayer, DB 2017, ‘Effects of peat swamp logging and agricultural expansion on species richness of native mammals in Peninsular Malaysia’, Basic and Applied Ecology, vol. 22, pp. 1-10. doi: https://doi.org/10.1016/j.baae.2017.04.002.

Afrane, YA, Githeko, AK, & Yan, G 2012, ‘The ecology of Anopheles mosquitoes under climate change: case studies from the effects of environmental changes in east Africa highlands’, Annals of the New York Academy of Sciences, vol. 1249, pp. 204-210. doi: 10.1111/j.1749-6632.2011.06432.x.

Angelsen, A 1995, ‘Shifting cultivation and “deforestation”: A study from Indonesia’, World Development, vol. 23, no. 10, pp. 1713-1729. doi: https://doi.org/10.1016/0305-750X(95)00070-S.

Angelsen, A 2010, ‘Policies for reduced deforestation and their impact on agricultural production’, Proceedings of the National Academy of Sciences, vol. 107, no. 46, pp. 19639-19644. doi: https://doi.org/10.1073/pnas.0912014107.

Angelsen, A, & Kaimowitz, D 1999, ‘Rethinking the causes of deforestation: lessons from economic models’, The World Bank Research Observer, vol. 14, no. 1, pp. 73-98. doi: https://doi.org/10.1093/wbro/14.1.73.

Asteriou, D, & Hall, SG 2007, Applied econometrics: A modern approach using EViews and Microfit. Palgrave Macmillan.

Austin, KG, Mosnier, A, Pirker, J, McCallum, I, Fritz, S, & Kasibhatla, PS 2017, ‘Shifting patterns of oil palm driven deforestation in Indonesia

and implications for zero-deforestation commitments’, Land Use Policy, vol. 69, pp. 41-48. doi: https://doi.org/10.1016/j.landusepol.2017.08.036.

Baltagi, BH 2008, Econometric analysis of panel data. John Wiley and Sons Ltd.

Barbier, EB 2004, ‘Water and economic growth’, Economic Record, vol. 80, no. 248, pp. 1-16. doi: https://doi.org/10.1111/j.1475-4932.2004.00121.x.

Barbier, EB, & Burgess, JC 2001, ‘The economics of tropical deforestation’, Journal of Economic Surveys, vol. 15, no. 3, pp. 413-433. doi: https://doi.org/10.1111/1467-6419.00144.

Barbier, EB, Bockstael, N, Burgess, JC, & Strand, I 1995, ‘The linkages between the timber trade and tropical deforestation—Indonesia’, World Economy, vol. 18, no. 3, pp. 411-442. doi: https://doi.org/10.1111/j.1467-

1995.tb00222.x.

Bell, L 2014, June 20, ‘Deforestation drives tigers into contact, conflict with humans’, Mongabay.cm. viewed 5 October 2019, https://news.mongabay.com/2014/06/deforestation-drives-tigers-into-contact-conflict-withhumans/.

Bhattarai, M, &d Hammig, M 2001, ‘Institutions and the environmental Kuznets curve for deforestation: a crosscountry analysis for Latin America, Africa and Asia’, World Development, vol. 29, no. 6, pp. 995-1010. doi: https://doi.org/10.1016/S0305-750X(01)00019-5.

Boucher, D, Roquemore, S, & Fitzhugh, E 2013, ‘Brazil’s success in reducing deforestation’, Tropical Conservation Science, vol. 6, no. 3, pp. 426-445. doi: https://doi.org/10.1177/94008291300600308.

Choumert, J, Motel, PC, & Dakpo, HK 2013, ‘Is the Environmental Kuznets Curve for deforestation a threatened theory? A meta-analysis of the literature’, Ecological Economics, vol. 90, pp. 19-28. doi:

https://doi.org/10.1016/j.ecolecon.2013.02.016.

Culas, RJ 2007, ‘Deforestation and the environmental Kuznets curve: An institutional perspective’, Ecological Economics, vol. 61, no. 2-3, pp. 429-437. doi: https://doi.org/10.1016/j.ecolecon.2006.03.014.

Darmawan, R, Klasen, S, & Nuryartono, N 2016, ‘Migration and deforestation in Indonesia’, EFForTS Discussion Paper Series, 19, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia). viewed 5 October 2019,

http://webdoc.sub.gwdg.de/pub/mon/sfb990/dp-19.pdf.

Delire, C, Behling, P, Coe, MT, Foley, JA, Jacob, R, Kutzbach, J, Liu, Z, & Vavrus, S 2001, ‘Simulated response of the atmosphere-ocean system to deforestation in the Indonesian Archipelago’, Geophysical Research

Letters, vol. 28, no. 10, pp. 2081-2084. doi: https://doi.org/10.1029/2000GL011947.

Enrici, AM, & Hubacek, K 2018, ‘Challenges for REDD+ in Indonesia: a case study of three project sites’, Ecology and Society, vol. 23, no. 2, pp. 7. https://www.jstor.org/stable/26799084.

Fayle, TM, Turner, EC, Snaddon, JL, Chey, VK, Chung, AY, Eggleton, P, & Foster, WA 2010, ‘Oil palm expansion into rain forest greatly reduces ant biodiversity in canopy, epiphytes and leaf-litter’, Basic and Applied Ecology, vol.11, no. 4, pp. 337-345. doi: https://doi.org/10.1016/j.baae.2009.12.009.

FAO 2001, Global Forest Resources Assessment 2000 (FRA 2000), Food and Agriculture Organization of the United Nations. viewed 30 August 2019, https://www.fao.org/forest-resources-assessment/

past-assessments/fra-2000/en/.

FAO 2014, Global forest resources assessment: Country report: Indonesia, Food and Agriculture Organization of the United Nations. viewed 30 August 2019, https://www.fao.org/3/az239e/az239e.pdf.

FAO 2015, Global forest resources assessment 2015: Desk reference, Food and Agriculture Organization of the United Nations. viewed 30 August 2019, http://www.fao.org/3/a-i4808e.pdf.

FAO 2019a, Indonesia, Food and Agriculture Organization of the United Nations. viewed 28 August 2019, http://www.fao.org/countryprofiles/index/en/?iso3=IDN.

FAO 2019b, FAOSTAT, Food and Agriculture Organization of the United Nations. viewed 9 November 2019, http://www.fao.org/faostat/en/#data/QC.

Gaertner, MA, Christensen, OB, Prego, JA, Polcher, J, Gallardo, C, & Castro, M 2001, ‘The impact of deforestation on the hydrological cycle in the western Mediterranean: an ensemble study with two regional climate models’, Climate Dynamics, vol. 17, no. 11, pp. 857-873. doi: https://doi.org/10.1007/s003820100151.

Garg, T 2014, Public health effects of ecosystem degradation: Evidence from deforestation in Indonesia. Job Market Paper. viewed 5 October 2019, http://health21initiative.org/wp-content/uploads/2017/08/2014-Cornell-Public-Health-Effects-of-Ecosystem-Degradation.pdf.

Goldman L, Said, Z, & Hamzah, H 2018, October 2, Technical blog: Indonesia tree cover loss and national deforestation data explained. viewed 7 October 2019, https://www.globalforestwatch.org/blog/data-and-research/technical-blog-indonesia-tree-cover-loss-and-nationaldeforestation-data-explained/.

Grossman, GM, & Krueger, AB 1991, ‘Environmental impacts of a North American free trade agreement’, NBER Working Papers Series, 3914. National Bureau of Economic Research. doi: 10.3386/w3914.

Grossman, GM, & Krueger, AB 1995, ‘Economic growth and the environment’, The Quarterly Journal of Economics, vol. 110, no. 2, pp. 353-377. doi: https://doi.org/10.2307/2118443.

Gouyon, A, De Foresta, H, & Levang, P 1993, ‘Does ‘jungle rubber’deserve its name? An analysis of rubber agroforestry systems in southeast Sumatra’, Agroforestry Systems, vol. 22, no. 3, pp. 181-206. doi: https://doi.org/10.1007/BF00705233.

Gunawan, H, Iskandar, S, Sihombing, VS, & Wienanto, R 2017, ‘Conflict between humans and leopards (Panthera pardus melas Cuvier, 1809) in Western Java, Indonesia’, Biodiversitas Journal of Biological Diversity, vol. 18, no. 2, pp. 652-658. doi: https://doi.org/10.13057/biodiv/d180229.

Hang, C, & Lyons, D 2019, April 22, ‘Earth day: Can Sumatran elephants and people coexist?: A new study aims to help the forest giants on the brink of extinction’, CIFOR Forest News. viewed 7 October 2019, https://forestsnews.cifor.org/60463/earth-day-can-sumatran-elephants-and-people-coexist?fnl=en.

Hewson, J 2015, June 29, ‘Where, when, why: Human-orangutan conflict in Borneo: All too often, encounters prove fatal for dwindling

orangutans’, CIFOR Forest News. viewed 7 October 2019, https://forestsnews.cifor.org/29341/where-when-why-human-orangutan-conflict-in-borneo?fnl=en.

Hu, X, Huang, B, & Cherubini, F 2019, ‘Impacts of idealized land cover changes on climate extremes in Europe’, Ecological Indicators, vol. 104, pp.626-635. doi: https://doi.org/10.1016/j.ecolind.2019.05.037.

Hussen, AM 2004, Principles of environmental economics (2nd Edition), Routledge.

Indrarto, GB, Murharjanti, P, Khatarina, J, Pulungan, I, Ivalerina, F, Rahman, J, Prana, MN, Resosudarmo, IAP, & Muharrom, E 2012, ‘The context of REDD+ in Indonesia: drivers, agents and institutions’, Working Paper, 92, Center for International Forestry Research (CIFOR). doi: https://doi.org/10.17528/cifor/003876.

Jong, HN 2019, February 20, ‘Indonesia to get first payment from Norway under $1b REDD+ scheme’, Mongabay.com. viewed 18 September 2019, https://news.mongabay.com/2019/02/indonesia-to-get-first-payment-from-norway-under-1b-reddscheme/.

Katz, DL 2008,Water, economic growth, and conflict: Three studies, (Dissertation, University of Michigan). viewed 18 September 2019, https://deepblue.lib.umich.edu/handle/2027.42/60789.

Katz, D 2015, ‘Water use and economic growth: reconsidering the Environmental Kuznets Curve relationship’, Journal of Cleaner Production, vol. 88, pp. 205-213. doi: https://doi.org/10.1016/j.jclepro.2014.08.017.

Klassen, A, Romero, C, & Putz, FE 2014, ‘Forest Stewardship Council certification of natural forest management in Indonesia: required improvements, costs, incentives, and barriers’, IUFRO World Series, vol. 32, pp. 255-273. viewed 18 September 2019, https://www.iufro.org/uploads/media/ws32.pdf.

Krishna, VV, Kubitza, C, Pascual, U, & Qaim, M 2017, ‘Land markets, property rights, and deforestation: insights from Indonesia’, World Development, vol. 99, pp. 335-349. doi: https://doi.org/10.1016/j.worlddev.2017.05.018.

Lamarque, F, Anderson, J, Fergusson, R, Lagrange, M, Osei-Owusu, Y, & Bakker, L 2009, ‘Human-wildlife conflict in Africa: Causes, consequences and management strategies’, FAO Forestry Paper, 157, Food and Agriculture Organization of the United Nations. viewed 30 August 2019, https://www.fao.org/3/i1048e/i1048e00.htm.

Lambin, EF, Gibbs, HK, Heilmayr, R, Carlson, KM, Fleck, LC, Garrett, RD, De Waroux, YLP, McDermott, CL, McLaughlin, D, Newton, P, & Nolte, C 2018, ‘The role of supply-chain initiatives in reducing deforestation’, Nature Climate Change, vol. 8, no. 2, pp. 109-116. doi: https://doi.org/10.1038/s41558-017-0061-1.

Lieb, CM 2003, ‘The environmental Kuznets curve: a survey of the empirical evidence and of possible causes’, Discussion Paper Series, 391, Department of Economics, University of Heidelberg. viewed 18 September 2019, https://www.uni-heidelberg.de/md/awi/forschung/dp391.pdf.

Lim, CH, Song, C, Choi, Y, Jeon, SW, & Lee, WK 2019, ‘Decoupling of forest water supply and agricultural water demand attributable to deforestation in North Korea’, Journal of Environmental Management, vol. 248, p. 109256. doi: https://doi.org/10.1016/j.jenvman.2019.07.027.

List, JA, & Gallet, CA 1999, ‘The environmental Kuznets curve: does one size fit all?’, Ecological Economics, vol. 31, no. 3, pp. 409-423. doi: https://doi.org/10.1016/S0921-8009(99)00064-6.

López-Ricaurte, L, Edwards, DP, Romero-Rodríguez, N, &d Gilroy, JJ 2017, ‘Impacts of oil palm expansion on avian biodiversity in a Neotropical natural savanna’, Biological Conservation, vol. 213, part A, pp. 225-233. doi: https://doi.org/10.1016/j.biocon.2017.07.009.

Ministry of Environment and Forestry Indonesia 2018, The state of Indonesia’s forest 2018. viewed 5 October 2019, https://www.menlhk.go.id/uploads/site/download/1540796347.pdf.

Mulyani, M, & Jepson, P 2013, ‘REDD+ and forest governance in Indonesia: a multistakeholder study of perceived challenges and opportunities’, The Journal of Environment & Development, vol. 22, no. 3, pp. 261-283. doi: https://doi.org/10.1177/1070496513494203.

Obidzinski, K, Dermawan, A, Andrianto, A, Komarudin, H, Hernawan, D, Fripp, E, & Cullinane, L 2014, ‘Timber legality verification system and the Voluntary Partnership Agreement in Indonesia: The challenges of the small-scale forestry sector’, Working Paper, 164, Center for International Forestry Research (CIFOR). doi: https://doi.org/10.17528/cifor/005456.

Palmer, C 2001, ‘The extent and causes of illegal logging: an analysis of a major cause of tropical deforestation in Indonesia’, CSERGE Working Papers, Centre for Social and Economic Research on the Global Environment (CSERGE). viewed 5 October 2019, https://discovery.ucl.ac.uk/id/eprint/17588/.

Patz, JA, Daszak, P, Tabor, GM, Aguirre, AA, Pearl, M, Epstein, J, Wolfe, ND, Kilpatrick, AM, Foufopoulos, J, Molyneux, D, & Bradley, DJ 2004, ‘Unhealthy landscapes: policy recommendations on land use change and infectious disease emergence’, Environmental Health Perspectives, vol. 112, no. 10, pp. 1092-1098. doi: https://doi.org/10.1289/ehp.6877.

Perman, R, Ma, Y, McGilvray, J, & Common, M 2003, Natural resource and environmental economics (3rd edition), Pearson Education.

Pitman, AJ, & Lorenz, R 2016, ‘Scale dependence of the simulated impact of Amazonian deforestation on regional climate’, Environmental Research Letters, vol. 11, no. 9, p. 094025.

Puyravaud, JP, Gubbi, S, Poornesha, HC, & Davidar, P 2019, ‘Deforestation increases frequency of incidents with elephants (Elephas maximus)’, Tropical Conservation Science, vol. 12, p. 1940082919865959. doi: https://doi.org/10.1177/1940082919865959.

Qomariah, IN 2018, March 6, Human and elephant conflict: the invisible impact of forest loss, World Resource Institute (WRI) Indonesia. viewed 6 March 2018, https://wri-indonesia.org/en/blog/human-and-elephant-conflict-invisible-impact-forest-loss.

Santos, AS, & Almeida, AN 2018, ‘The impact of deforestation on malaria infections in the Brazilian Amazon’, Ecological Economics, vol. 154, pp. 247-256. doi: https://doi.org/10.1016/j.ecolecon.2018.08.005.

Selden, TM, & Song, D 1994, ‘Environmental quality and development: is there a Kuznets curve for air pollution emissions?’, Journal of Environmental Economics and management, vol. 27, no. 2, pp. 147-162. doi: https://doi.org/10.1006/jeem.1994.1031.

Statistics Indonesia (various years), Statistics of forestry production, [viewed at various dates in 2019].

Statistics Indonesia 2018, Statistik Indonesia 2018 [Statistical Yearbook of Indonesia 2018].

Sunderlin, WD, de Sassi, C, Sills, EO, Duchelle, AE, Larson, AM, Resosudarmo, IAP, Awono, A, Kweka, DL, & Huynh, TB 2018, ‘Creating an appropriate tenure foundation for REDD+: The record to date and prospects for the future’, World Development, vol. 106, pp. 376-392. doi: https://doi.org/10.1016/j.worlddev.2018.01.010.

Sunderlin, WD, & Resosudarmo, IAP 1996, ‘Rates and causes of deforestation in Indonesia: towards a resolution of the ambiguities’, Occasional Paper, 9, Center for International Forestry Research (CIFOR). doi: https://doi.org/10.17528/cifor/000056.

Sunderlin, W, & Resosudarmo, IAP 1999, ‘The effect of population and migration on forest cover in Indonesia’, The Journal of Environment & Development, vol. 8, no. 2, pp. 152-169. doi: https://doi.org/10.1177/107049659900800204.

Swann, AL, Longo, M, Knox, RG, Lee, E, & Moorcroft, PR 2015, ‘Future deforestation in the Amazon and consequences for South American climate’, Agricultural and Forest Meteorology, vol. 214-215, pp. 12-24. doi: https://doi.org/10.1016/j.agrformet.2015.07.006.

Swedish Society for Nature Conservation 2013, ‘REDD plus or REDD “Light”? Biodiversity, communities and forest carbon certification’, Report. viewed 6 March 2019, https://old.naturskyddsforeningen.se/sites/default/files/dokument-media/REDD%20Plus%20or%20REDD%20Light.pdf.

Taguchi, H 2012, ‘The environmental Kuznets Curve in Asia: The case of sulphur and carbon emissions’, Asia-Pasific Development Journal, vol. 19, no.2, pp. 77-92.

Tejaswi, G 2007, ‘Manual on deforestation, degradation and fragmentation using remote sensing and GIS’, MAR-SFM Working Paper 5/2007, Food and Agriculture Organization of the United Nations. viewed 6 March 2019, https://www.fao.org/publications/card/en/c/

c77e-6679-5db8-bb0f-942577000f62/.

Walsh, JF, Molyneux, DH, & Birley, MH 1993, ‘Deforestation: effects on vector-borne disease’, Parasitology, vol. 106, no. S1, pp. S55-S75. doi:10.1017/S0031182000086121.

Waluyo, EA, & Terawaki, T 2016, ‘Environmental Kuznets curve for deforestation in Indonesia: an ARDL bounds testing approach’, Journal of Economic Cooperation & Development, vol. 37, no. 3, pp. 87-108.

Wehkamp, J, Koch, N, Lübbers, S, & Fuss, S 2018, ‘Governance and deforestation—a meta-analysis in economics’, Ecological Economics, vol. 144, pp. 214-227. doi: https://doi.org/10.1016/j.ecolecon.2017.07.030.

World Bank 2019a, Forest area (% of land area) - Indonesia. viewed 28 August 2019, https://data.worldbank.org/indicator/AG.LND.FRST.ZS?locations=ID.

World Bank 2019b, 3.4 World Development Indicators: Deforestation and biodiversity. viewed 30 August 2019, http://wdi.worldbank.org/table/3.4.

Refbacks

  • There are currently no refbacks.