The Effects of Forest Change on Agricultural Productivity: Evidence from Indonesia

26 Pages Posted: 6 Feb 2018 Last revised: 11 May 2018

See all articles by Yuki Yamamoto

Yuki Yamamoto

Nagasaki University

Yuichi Ishimura

Osaka International University - Department of Global Business

Yosuke Shigetomi

Nagasaki University

Mitsuru Hattori

Nagasaki University

Date Written: January 1, 2018

Abstract

We examine how forest cover change can affect agricultural productivity using household panel data and remote sensing data on forest change. The focus is on rural Indonesia, where intensive biodiversity loss is occurring from deforestation while agriculture is the main industry. We estimate an agricultural production function and find that farmers experienced reduction of agricultural productivity of 44% or $2.63 billion across rural Indonesia between 2001 and 2014. In addition, we explore the mechanisms underlying the productivity loss and find that biological pest control is the most plausible explanation.

Keywords: Forest; Agricultural Productivity; Indonesia; Ecosystem Service; Biological Control

JEL Classification: Q51; Q56; Q57

Suggested Citation

Yamamoto, Yuki and Ishimura, Yuichi and Shigetomi, Yosuke and Hattori, Mitsuru, The Effects of Forest Change on Agricultural Productivity: Evidence from Indonesia (January 1, 2018). Available at SSRN: https://ssrn.com/abstract=3112002 or http://dx.doi.org/10.2139/ssrn.3112002

Yuki Yamamoto (Contact Author)

Nagasaki University

1-14
Bunkyo-machi
Nagasaki, 852-8521
Japan

Yuichi Ishimura

Osaka International University - Department of Global Business ( email )

6-21-57 Tohda Moriguchi
Osaka, 570-8555
Japan

Yosuke Shigetomi

Nagasaki University ( email )

1-14 Bunkyo-machi
Nagasaki
Nagasaki, 852-8521
Japan

Mitsuru Hattori

Nagasaki University ( email )

1-14
Bunkyou-machi
Nagasaki, Nagasaki 852-8521
Japan

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