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Migration and Deforestation in Indonesia

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Migration and Deforestation in Indonesia A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Darmawan, Rivayani; Klasen, Stephan; Nuryartono, Nunung Working Paper Migration and deforestation in Indonesia EFForTS Discussion Paper Series, No. 19 Provided in Cooperation with: Collaborative Research Centre 990: Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia), University of Goettingen Suggested Citation: Darmawan, Rivayani; Klasen, Stephan; Nuryartono, Nunung (2016) : Migration and deforestation in Indonesia, EFForTS Discussion Paper Series, No. 19, GOEDOC, Dokumenten- und Publikationsserver der Georg-August-Universität, Göttingen, http://nbn-resolving.de/urn:nbn:de:gbv:7-webdoc-3967-7 This Version is available at: http://hdl.handle.net/10419/130249 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. 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Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. http://creativecommons.org/licenses/by-nd/4.0/ www.econstor.eu GOEDOC - Dokumenten- und Publikationsserver der Georg-August-Universität Göttingen 2016 Migration and Deforestation in Indonesia Rivayani Darmawan, Stephan Klasen, and Nunung Nuryartono EFForTS discussion paper series Nr. 19 Darmawan, Rivayani ; Klasen, Stephan ; Nuryartono, Nunung: Migration and Deforestation in Indonesia Göttingen : GOEDOC, Dokumenten- und Publikationsserver der Georg-August-Universität, 2016 (EFForTS discussion paper series 19) Verfügbar: http://resolver.sub.uni-goettingen.de/purl/?webdoc-3967 Bibliographische Information der Deutschen Nationalbibliothek Die Deutsche Nationalbibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliographie; detaillierte bibliographische Daten sind im Internet über <http://dnb.ddb.de> abrufbar. Erschienen in der Reihe EFForTS discussion paper series ISSN: 2197-6244 Herausgeber der Reihe SFB 990 EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transforma- tion Systems (Sumatra, Indonesien) - Ökologische und sozioökonomische Funktionen tropischer Tief- landregenwald-Transformationssysteme (Sumatra, Indonesien) Georg-August-Universität Göttingen Johann-Friedrich-Blumenbach Institut für Zoologie und Anthropologie, Fakultät für Biologie und Psychologie Abstract: Indonesia now has the highest deforestation rate in the world, with an average increase of about 47,600 ha per year. As a result, the nation is one of the largest emitters of greenhouse gases in the world and is putting its rich biodiversity at risk. Although the literature discussing the political economy of Indonesia commercial’s logging is growing, only a small amount focuses on the relation- ship between migration and deforestation. Migration may contribute to the forest cover change, as mi- grants often face serious constraints from the local residents in claiming the land, and thus tend to find new forest land which can be used as a means of living or converted into an agricultural planta- tion. This paper empirically investigates the relationship between recent in-migration and deforesta- tion in Indonesia. By combining available population census data with the satellite image data MODIS, we find a significant positive relationship between migration and deforestation at the district level us- ing a fixed effects panel econometric framework. The results also suggest that the expanding oil palm production is one significant driver for the fast disappearance of Indonesia’s forest. Keywords: deforestation, migration, oil palm, Indonesia Migration and Deforestation in Indonesia Rivayani Darmawan, Stephan Klasen, and Nunung Nuryartono EFForTS Discussion Paper Series No. 19 Funded by the German Research Foundation (DFG) through the SFB 990 “EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)” www.uni-goettingen.de SFB 990, Georg-August-University of Goettingen Berliner Strasse 28, D-37073 Goettingen, Germany ISSN: 2197-6244 Managing editors: at the University of Goettingen, Germany Prof. Dr. Heiko Faust, Faculty of Geoscience and Geography, Division of Human Geography (Email: [email protected]) at the University of Jambi, Indonesia Prof. Dr. Zulkifli Alamsyah, Faculty of Agriculture, Dept. of Agricultural Economics (Email: [email protected]) 2 Table of Contents Abstract ........................................................................................................................................ 4 1. Introduction ........................................................................................................................... 6 2. Institutional background ....................................................................................................... 8 3. Empirical specifications ........................................................................................................ 9 4. Data ..................................................................................................................................... 11 5. Results ................................................................................................................................. 13 6. Conclusion .......................................................................................................................... 16 7. Acknowledgements ............................................................................................................. 17 8. References ........................................................................................................................... 18 9. Appendices .......................................................................................................................... 20 3 List of Tables Table 1. Summary statistics at district level .............................................................................. 11 Table 2. Fixed effects regression: deforestation and migration ................................................ 15 Table 3. Fixed effects regression: migration and deforestation by forest zone ......................... 16 Table A 1. Total deforestation and migration, OLS .................................................................. 20 Table A 2. Total deforestation and migration by forest zone, OLS .......................................... 21 Table A 3. Fixed effects regression: deforestation and migration ............................................. 22 4 Migration and Deforestation in Indonesia Rivayani Darmawan1, Stephan Klasen2, and Nunung Nuryartono3 Abstract Indonesia now has the highest deforestation rate in the world, with an average increase of about 47,600 ha per year. As a result, the nation is one of the largest emitters of greenhouse gases in the world and is putting its rich biodiversity at risk. Although the literature discussing the political economy of Indonesia commercial’s logging is growing, only a small amount focuses on the relationship between migration and deforestation. Migration may contribute to the forest cover change, as migrants often face serious constraints from the local residents in claiming the land, and thus tend to find new forest land which can be used as a means of living or converted into an agricultural plantation. This paper empirically investigates the relationship between recent in-migration and deforestation in Indonesia. By combining available population census data with the satellite image data MODIS, we find a significant positive relationship between migration and deforestation at the district level using a fixed effects panel econometric framework. The results also suggest that the expanding oil palm production is one significant driver for the fast disappearance of Indonesia’s forest. Keywords: deforestation; migration; oil palm; Indonesia JEL Codes: Q23, R14, J61 1 Corresponding author. Department of Economics, Georg-August-University of Goettingen, Platz der Goettinger Sieben 3, D37073 Germany. Phone: +49 551 39-21680. Email: [email protected] 2 Department of Economics, Georg-August-University of Goettingen, Platz der Goettinger Sieben 3, D37073 Germany. Email: [email protected] 3 Faculty of Economics and Management, Bogor Agricultural University (IPB), Indonesia 5 1. Introduction The extensive forest cover clearing in Indonesia in recent decades has given it the highest rate of increasing deforestation in the world. It has been estimated that the average deforestation rate in Indonesia was 47,600 ha per year from 2000 to 2012. In 2012, it was reported that the total forest lost in Indonesia
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