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An Investigation into the Derived Demand for Land in Palm Oil Production
Lau, Jia Li

2009, Master of Science, Ohio State University, Agricultural, Environmental Development Economics.
Over the years, the world industry of oil palm has been rapidly increasing in the tropical areas of Asia, Africa and America. One of the major reasons behind this increase is the wider use of palm oil biodiesel as an alternative energy source. The demand for palm oil is further strengthened as more countries establish mandates on use of biofuels. The high prices for palm oil, driven partly by the introduction of palm oil biodiesel, spur even more investment in the palm oil sector. The expansion of oil palm plantation changes land use pattern. The rapid growth in the plantation area of oil palm poses several environmental challenges. The research problems of interest here are how do changes in palm oil demand determinants affect land use pattern, and to what extend the use of palm oil biodiesel contributes to demand for land in oil palm production. Dataset used in this study are from the six major producers in the world, namely Colombia, Côte d'Ivoire, Indonesia, Malaysia, Nigeria, and Thailand. The least square dummy variable derived demand model in this study takes into account the price of palm oil, economic growth, price of other vegetable oils, crude oil price, export quantity and several fixed effects variables. Own price and price of other vegetable oils do not significantly affect demand for oil palm area harvested, whereas economic growth, export market and crude oil price have significant impact on the derived demand for oil palm area harvested. The pattern of oil palm area harvested differs between countries from South East Asia and the other remaining countries. Governmental intervention and political stability have a role behind the distinctive feature of oil palm plantation across the six countries.
BRENT SOHNGEN, PhD (Advisor)
ABDOUL SAM, PhD (Committee Member)
95 p.

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Lau, Jia Li. "An Investigation into the Derived Demand for Land in Palm Oil Production." Electronic Thesis or Dissertation. Ohio State University, 2009. OhioLINK Electronic Theses and Dissertations Center. 28 Jul 2015.

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Lau, Jia Li "An Investigation into the Derived Demand for Land in Palm Oil Production." Electronic Thesis or Dissertation. Ohio State University, 2009. https://etd.ohiolink.edu/

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