Palm oil and the politics of deforestation in Indonesia

摘要: Abstract This paper studies the interactions between political and economic incentives to foster forest conversion in Indonesian districts. Using a district–level panel data set from 2001 2016, we analyze variation remotely sensed losses as well measures of land-use licensing. We link these outcomes arising before idiosyncratically–timed local mayoral elections price exposure based on oil palm soil suitability combined with global variations for oil. Empirical results document increases about 4% deforestation year prior average. Additionally, plays crucial role driving dynamics. Deforestation rates increase by 7% places that experience one standard deviation exposure, but no upcoming elections. These effects are amplified almost 19% larger pre-election years higher at same time. thus find clear evidence reinforcing each other drivers loss land cultivation.