Policy failures and environmental externalities: Case of oil palm in Malaysia and Indonesia

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Rising export demand for palm oil may lead to pronounced increases in agricultural land demand for oil palm expansion in Malaysia and Indonesia-two main palm oil producing and exporting countries. However, it is expected that the environmental effects of agricultural land augmentation will depend much on existing governance affecting environmental and forestry management in the two countries. Given the relatively more prevalent policy and institutional failures in Indonesia, it is anticipated that deforestation consequences and open burnings in the country will be stronger, inevitably giving rise to recurring haze externalities in the region. This paper examines environment-trade linkages affecting the oil palm sub-sector in Malaysia and Indonesia. Shifts in export demand for palm oil were simulated and effects on land use in Malaysia and Indonesia were observed under varying assumptions of environmental and forestry policy regimes in the two countries. Inferences on haze effects are provided.

Original languageEnglish
Title of host publicationReadings in World Developments: Growth & Development in the Asia Pacific
PublisherNova Science Publishers, Inc.
Pages103-114
Number of pages12
ISBN (Print)1594549478, 9781594549472
Publication statusPublished - 2006

Fingerprint

Indonesia
Malaysia
forestry
demand
exporting country
land use
governance
management

Keywords

  • Haze externalities
  • Land demand
  • Palm oil trade
  • Policy failures

ASJC Scopus subject areas

  • Social Sciences(all)

Cite this

Othman, J. (2006). Policy failures and environmental externalities: Case of oil palm in Malaysia and Indonesia. In Readings in World Developments: Growth & Development in the Asia Pacific (pp. 103-114). Nova Science Publishers, Inc..

Policy failures and environmental externalities : Case of oil palm in Malaysia and Indonesia. / Othman, Jamal.

Readings in World Developments: Growth & Development in the Asia Pacific. Nova Science Publishers, Inc., 2006. p. 103-114.

Research output: Chapter in Book/Report/Conference proceedingChapter

Othman, J 2006, Policy failures and environmental externalities: Case of oil palm in Malaysia and Indonesia. in Readings in World Developments: Growth & Development in the Asia Pacific. Nova Science Publishers, Inc., pp. 103-114.
Othman J. Policy failures and environmental externalities: Case of oil palm in Malaysia and Indonesia. In Readings in World Developments: Growth & Development in the Asia Pacific. Nova Science Publishers, Inc. 2006. p. 103-114
Othman, Jamal. / Policy failures and environmental externalities : Case of oil palm in Malaysia and Indonesia. Readings in World Developments: Growth & Development in the Asia Pacific. Nova Science Publishers, Inc., 2006. pp. 103-114
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