Revisiting the palm oil boom in Southeast Asia: The role of fuel versus food demand drivers
In the last 30 years, palm oil production has known a ninefold increase, with almost all production growth concentrated in Malaysia and Indonesia. Several public reports have associated the palm oil boom with extensive deforestation, often pointing to the increase in biofuel demand in developed nati...
| Autores principales: | , , |
|---|---|
| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2012
|
| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/153835 |
| _version_ | 1855529997450608640 |
|---|---|
| author | Sanders, Daniel J. Balagtas, Joseph V. Gruère, Guillaume P. |
| author_browse | Balagtas, Joseph V. Gruère, Guillaume P. Sanders, Daniel J. |
| author_facet | Sanders, Daniel J. Balagtas, Joseph V. Gruère, Guillaume P. |
| author_sort | Sanders, Daniel J. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | In the last 30 years, palm oil production has known a ninefold increase, with almost all production growth concentrated in Malaysia and Indonesia. Several public reports have associated the palm oil boom with extensive deforestation, often pointing to the increase in biofuel demand in developed nations as a main driver of this phenomenon. Other demand drivers, especially as related to the food sector, have not been studied as much. In particular, regulations on genetically modified (GM) food in European nations and on trans fats in a number of developed countries have reportedly induced food companies to switch from soybean oil to palm oil and could therefore have contributed to additional demand for palm oil. This article provides a first analysis of the drivers of growth in palm oil production during the 1980–2010 boom, using a price dynamics analysis of the markets for palm oil, soybean oil, and crude oil. Soybean oil is selected as the leading vegetable oil in food markets, and crude oil is taken to represent the energy sector. We estimate two models of the oil price system: a vector auto regression model that treats all three prices as stationary and a vector error correction model that allows co-integration among the three prices. |
| format | Artículo preliminar |
| id | CGSpace153835 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2012 |
| publishDateRange | 2012 |
| publishDateSort | 2012 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1538352025-11-06T06:42:32Z Revisiting the palm oil boom in Southeast Asia: The role of fuel versus food demand drivers Sanders, Daniel J. Balagtas, Joseph V. Gruère, Guillaume P. palm oils biofuels In the last 30 years, palm oil production has known a ninefold increase, with almost all production growth concentrated in Malaysia and Indonesia. Several public reports have associated the palm oil boom with extensive deforestation, often pointing to the increase in biofuel demand in developed nations as a main driver of this phenomenon. Other demand drivers, especially as related to the food sector, have not been studied as much. In particular, regulations on genetically modified (GM) food in European nations and on trans fats in a number of developed countries have reportedly induced food companies to switch from soybean oil to palm oil and could therefore have contributed to additional demand for palm oil. This article provides a first analysis of the drivers of growth in palm oil production during the 1980–2010 boom, using a price dynamics analysis of the markets for palm oil, soybean oil, and crude oil. Soybean oil is selected as the leading vegetable oil in food markets, and crude oil is taken to represent the energy sector. We estimate two models of the oil price system: a vector auto regression model that treats all three prices as stationary and a vector error correction model that allows co-integration among the three prices. 2012 2024-10-01T13:57:55Z 2024-10-01T13:57:55Z Working Paper https://hdl.handle.net/10568/153835 en Open Access application/pdf International Food Policy Research Institute Sanders, Daniel J.; Balagtas, Joseph V.; Gruere, Guillaume P. 2012. Revisiting the palm oil boom in Southeast Asia: The role of fuel versus food demand drivers. IFPRI Discussion Paper 1167. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/153835 |
| spellingShingle | palm oils biofuels Sanders, Daniel J. Balagtas, Joseph V. Gruère, Guillaume P. Revisiting the palm oil boom in Southeast Asia: The role of fuel versus food demand drivers |
| title | Revisiting the palm oil boom in Southeast Asia: The role of fuel versus food demand drivers |
| title_full | Revisiting the palm oil boom in Southeast Asia: The role of fuel versus food demand drivers |
| title_fullStr | Revisiting the palm oil boom in Southeast Asia: The role of fuel versus food demand drivers |
| title_full_unstemmed | Revisiting the palm oil boom in Southeast Asia: The role of fuel versus food demand drivers |
| title_short | Revisiting the palm oil boom in Southeast Asia: The role of fuel versus food demand drivers |
| title_sort | revisiting the palm oil boom in southeast asia the role of fuel versus food demand drivers |
| topic | palm oils biofuels |
| url | https://hdl.handle.net/10568/153835 |
| work_keys_str_mv | AT sandersdanielj revisitingthepalmoilboominsoutheastasiatheroleoffuelversusfooddemanddrivers AT balagtasjosephv revisitingthepalmoilboominsoutheastasiatheroleoffuelversusfooddemanddrivers AT gruereguillaumep revisitingthepalmoilboominsoutheastasiatheroleoffuelversusfooddemanddrivers |