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Effects of demand-side restrictions on high-deforestation palm oil in Europe on deforestation and emissions in Indonesia

Bibliographic Data

ID15548574
AuthorsJonah Busch (0000-0003-0918-4179, Conservation International, corresponding author), Oyut Amarjargal (Earth Island Institute), Farzad Taheripour (0000-0002-2652-3403, Purdue University West Lafayette), Kemen Austin (0000-0002-7690-8774, RTI International), Rizki N Siregar (0000-0002-4949-2785, Johannes Gutenberg University Mainz), Kellee Koenig (0000-0002-2505-860X, Conservation International), Thomas W Hertel (0000-0002-7179-7630, Purdue University West Lafayette)
Year2021
Volume17
Issue1
Pages014035-014035
Publication date2021-12-15
Open AccessYes
TypeARTICLE
VenueEnvironmental Research Letters (JOURNAL)
Journal identifiersISSN: 1748-9326 • E-ISSN: 1748-9326
PublisherIOP Publishing (PUBLISHER • GB)
DOI10.1088/1748-9326/ac435e
OpenAlexW4200372668
LanguageEN
Citations received9
References cited46

Demand-side restrictions on high-deforestation commodities are expanding as a climate policy, but their impact on reducing tropical deforestation and emissions has yet to be quantified. Here we model the effects of demand-side restrictions on high-deforestation palm oil in Europe on deforestation and emissions in Indonesia. We do so by integrating a model of global trade with a spatially explicit model of land-use change in Indonesia. We estimate a European ban on high-deforestation palm oil from 2000 to 2015 would have led to a 8.9% global price premium on low-deforestation palm oil, resulting in 21 374 ha yr −1 (1.60%) less deforestation and 21.1 million tCO 2 yr −1 (1.91%) less emissions from deforestation in Indonesia relative to what occurred. A hypothetical Indonesia-wide carbon price would have achieved equivalent emission reductions at $0.81/tCO 2 . Impacts of a ban are small because: 52% of Europe’s imports of high-deforestation palm oil would have shifted to non-participating countries; the price elasticity of supply of high-deforestation oil palm cropland is small (0.13); and conversion to oil palm was responsible for only 32% of deforestation in Indonesia. If demand-side restrictions succeed in substantially reducing deforestation, it is likely to be through non-price pathways

Agricultural economics · Agroforestry · Business · Deforestation (computer science · Economics · Land use · Land use, land-use change and forestry · Natural resource economics · Palm oil · Conservation, Biodiversity, and Resource Management · Energy, Environment, and Transportation Policies · Environmental Science · Oil Palm Production and Sustainability · Ecology

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Citations per year3
Citation span2023 - 2025 (3)
Highly citedNo

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