Research Projects - Ernah

Cost- benefit analysis of sustainability standards in small holder oil palm farming in Sumatra, Indonesia

This research aims to assess the acceptance and economic consequences of standards for sustainable oil palm farming among small holders in the province of Jambi, Sumatra, Indonesia. This study will draw from an existing panel data set of some 291 small holder oil palm farmers from 2010 and 2012 in two districts of Jambi. Three hypotheses will be tested: (1) smallholder oil palm farmers are aware of the environmental standards promoted by the Government in oil palm plantations; (2) the benefits of sustainable oil palm management practices are uncertain; (3) woman can play a major role in implementing sustainable oil palm management practices. Fieldwork to test the first hypotheses has already been conducted during July - August 2012. For 2013, additional data collection is proposed with the objective to test the second and the third hypotheses. Individual interviews, focus group discussions with village groups and a stakeholder workshop will be conducted to establish the empirical base for developing and applying cost benefit analysis.