The Impact Of Trade Liberalization On The Indonesian Palm Oil And Coconut Oil Market PDF Download

This thesis connects trade, environment and labour in the current much debated palm oil market.The international trade scenario fosters production in the palm oil market but produces huge environmental consequences in Indonesia, such as harsh exploitation of tropical forests, biodiversity loss and pollution. The expected business revenues and the environmental costs are here represented by a production- forest trade off model from both a social planner and a private firm perspective and lately developed and discussed at steady state in a non-linear function. Although it is even more common to find papers complaining about the effects of palm oil production on the environment, it is quite uncommon to find papers looking also at the other side of the coin, i.e. labour. Despite the huge environmental damages it is indeed true that the palm oil labour demand permits peasants to survive in rural areas.In the face of such a nest we below report a theoretical framework, developing different models for the farms and the peasants, i.e. models with focus on environment and on labor, representing the oil and water of the palm oil production system. Finally, individual specific models, both in environment and labour, lead us to solid conclusions dealing with the possibility to reduce land use and the probability for peasants to migrate towards cities.