The Role of Markets, Technology, and Policy in Generating Palm-Oil Demand in Indonesia

Indonesia produces more palm oil and consumes more palm oil per capita than any country in the world. This article examines the processes through which Indonesia has promoted palm-oil consumption and some of the consequences of that promotion. Partial equilibrium modelling shows that Indonesia'...

Full description

Bibliographic Details
Main Author: Gaskell, Joanne C.
Format: Journal Article
Language:en_US
Published: Taylor and Francis 2015
Subjects:
Online Access:http://hdl.handle.net/10986/22644
id okr-10986-22644
recordtype oai_dc
spelling okr-10986-226442021-04-23T14:04:10Z The Role of Markets, Technology, and Policy in Generating Palm-Oil Demand in Indonesia Gaskell, Joanne C. consumption markets palm oil Indonesia produces more palm oil and consumes more palm oil per capita than any country in the world. This article examines the processes through which Indonesia has promoted palm-oil consumption and some of the consequences of that promotion. Partial equilibrium modelling shows that Indonesia's remarkable increase in palm-oil consumption since 1985 is not largely attributable to population and income growth. Instead, much of this consumption growth has resulted from substitution away from coconut oil, facilitated by government policies on technology, pricing, distribution, and trade. The switch from coconut oil to palm oil in Indonesia was associated with increased land conversions to agriculture and diminished smallholder competitiveness. Despite lower rates of cooking-oil substitution in the future, simulations suggest that Indonesia's total palm-oil consumption in 2035 will be at least double that of 2010. 2015-09-21T20:28:36Z 2015-09-21T20:28:36Z 2015-03-30 Journal Article Bulletin of Indonesian Economic Studies 0007-4918 http://hdl.handle.net/10986/22644 en_US CC BY-NC-ND 3.0 igo http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research Publications & Research :: Journal Article Indonesia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language en_US
topic consumption
markets
palm oil
spellingShingle consumption
markets
palm oil
Gaskell, Joanne C.
The Role of Markets, Technology, and Policy in Generating Palm-Oil Demand in Indonesia
geographic_facet Indonesia
description Indonesia produces more palm oil and consumes more palm oil per capita than any country in the world. This article examines the processes through which Indonesia has promoted palm-oil consumption and some of the consequences of that promotion. Partial equilibrium modelling shows that Indonesia's remarkable increase in palm-oil consumption since 1985 is not largely attributable to population and income growth. Instead, much of this consumption growth has resulted from substitution away from coconut oil, facilitated by government policies on technology, pricing, distribution, and trade. The switch from coconut oil to palm oil in Indonesia was associated with increased land conversions to agriculture and diminished smallholder competitiveness. Despite lower rates of cooking-oil substitution in the future, simulations suggest that Indonesia's total palm-oil consumption in 2035 will be at least double that of 2010.
format Journal Article
author Gaskell, Joanne C.
author_facet Gaskell, Joanne C.
author_sort Gaskell, Joanne C.
title The Role of Markets, Technology, and Policy in Generating Palm-Oil Demand in Indonesia
title_short The Role of Markets, Technology, and Policy in Generating Palm-Oil Demand in Indonesia
title_full The Role of Markets, Technology, and Policy in Generating Palm-Oil Demand in Indonesia
title_fullStr The Role of Markets, Technology, and Policy in Generating Palm-Oil Demand in Indonesia
title_full_unstemmed The Role of Markets, Technology, and Policy in Generating Palm-Oil Demand in Indonesia
title_sort role of markets, technology, and policy in generating palm-oil demand in indonesia
publisher Taylor and Francis
publishDate 2015
url http://hdl.handle.net/10986/22644
_version_ 1764451653005606912