Human induced land-use change has direct economic and ecological consequences, which are felt the most in the poorest world regions. Therefore, the key question in land-use change research is how to protect and enhance the ecological functions of tropical landscapes while simultaneously improving human welfare. Addressing the complex links between the economic and ecological sphere, this dissertation seeks to shed a light on the socio-economic drivers of land-use change in developing countries. Taking Indonesia as an example, this thesis will specifically focus on the determinants and impac...
Human induced land-use change has direct economic and ecological consequences, which are felt the most in the poorest world regions. Therefore, the key question in land-use change research is how to protect and enhance the ecological functions of tropical landscapes while simultaneously improving human welfare. Addressing the complex links between the economic and ecological sphere, this dissertation seeks to shed a light on the socio-economic drivers of land-use change in developing countries. Taking Indonesia as an example, this thesis will specifically focus on the determinants and impac...
Land-use changes have dramatically transformed tropical landscapes. We describe an ecological-economic land-use change model as an integrated, exploratory tool used to analyze how tropical land-use change affects ecological and socio-economic functions. The model analysis seeks to determine what kind of landscape mosaic can improve the ensemble of ecosystem functioning, biodiversity, and economic benefit based on the synergies and trade-offs that we have to account for. More specifically, (1) how do specific ecosystem functions, such as carbon storage, and economic functions, such as household consumption, relate to each other? (2) How do external factors, such as the output prices of crops, affect these relationships? (3) How do these relationships change when production inefficiency differs between smallholder farmers and learning is incorporated? We initialize the ecological-economic model with artificially generated land-use maps parameterized to our study region. The economic sub-model simulates smallholder land-use management decisions based on a profit maximization assumption. Each household determines factor inputs for all household fields and decides on land-use change based on available wealth. The ecological sub-model includes a simple account of carbon sequestration in above-ground and below-ground vegetation. We demonstrate model capabilities with results on household consumption and carbon sequestration from different output price and farming efficiency scenarios. The overall results reveal complex interactions between the economic and ecological spheres. For instance, model scenarios with heterogeneous crop-specific household productivity reveal a comparatively high inertia of land-use change. Our model analysis even shows such an increased temporal stability in landscape composition and carbon stocks of the agricultural area under dynamic price trends. These findings underline the utility of ecological-economic models, such as ours, to act as exploratory tools which can advance our understanding of the mechanisms underlying the trade-offs and synergies of ecological and economic functions in tropical landscapes.
Specialization in agricultural systems can lead to trade-offs between economic gains and ecosystem functions. We suggest and explore a conceptual framework in which economic gains can be maximized when production activities are specialized at increasingly broader scales (from the household to the village, region or above), particularly when markets for outputs and inputs function well. Conversely, more specialization likely reduces biodiversity and significantly limits ecosystem functions. When agricultural specialization increases and moves to broader scales as a result of improved infrastructure and markets or other drivers, ecosystem functions can also be endangered at broader spatial scales. Policies to improve agricultural incomes may influence the level of specialization at different scales and thus affect the severity of the trade-offs. This paper takes Jambi province in Indonesia, a current hotspot of rubber and oil palm monoculture, as a case study to illustrate these issues. We empirically show that the level of specialization differs across scales with higher specialization at household and village levels and higher diversification towards the province level. We discuss ways to resolve trade-offs between economic gains and ecological costs, including landscape design, targeted policies, and adoption of long-term perspectives.
The rapid expansion of the oil palm area in many tropical countries has raised concerns about its negative impact on local communities, food security, and on the environment. While the expansion of oil palm in early stages was mainly driven by large private and public companies, it is expected that smallholders will outnumber large estates in the near future. For policy formulation it is hence important to better understand who these smallholders are and why they have started to cultivate oil palm. In this paper, we used a rich dataset collected in the province of Jambi, which is one of the most important production areas for oil palm, to analyse smallholders' decision making by combining qualitative, quantitative, and experimental methods. We identified agricultural expertise, lacking flexibility in labour requirements, availability of seedlings, and investment costs as the major constraints for farmers to cultivate oil palm. Important reasons for oil palm cultivation are the higher returns to labour and the shorter immature phase of oil palm. We also showed that oil palm farmers are neither risk-averse nor risk-loving, rather, they appear to be risk-neutral.
