Which smallholders are willing to adopt Acacia mangium under long-term contracts? Evidence from a choice experiment study in Indonesia

Dwiko B Permadi; Michael Burton; Ram Pandit; Iain Walker; Digby Race

doi:10.1016/j.landusepol.2017.04.015

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Which smallholders are willing to adopt Acacia mangium under long-term contracts? Evidence from a choice experiment study in Indonesia

Journal article

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Which smallholders are willing to adopt Acacia mangium under long-term contracts? Evidence from a choice experiment study in Indonesia

Dwiko B Permadi, Michael Burton, Ram Pandit, Iain Walker and Digby Race

Land Use Policy, Vol.65, pp.211-223

2017

DOI: https://doi.org/10.1016/j.landusepol.2017.04.015

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Abstract

afforestation contracts

forestry partnership

scale-adjusted latent class model

policy choices

forest transition

Indonesia

Smallholder ownership of forests has grown rapidly over the last 25 years, leading to global forest transition; however, incentives are required to keep smallholders growing trees under long-term afforestation contracts. This article reports on smallholders' willingness to join afforestation programs, growing Acacia mangium under contract on their private farmland. In a Choice Experiment, we examine the effects of policy attributes of afforestation contracts, including contract duration, labour participation, timber insurance, training opportunities, road improvement, and expected income. We report the marginal value of changes in monetary terms. A scale-extended latent class model was used to analyse preference heterogeneity in data of 323 smallholders from three different regions in Indonesia (West Kalimantan, Yogyakarta, and South Sumatera). These regions are at different forest transition stages. Our results indicate that there are four latent preference classes, which value attributes of the contract differently. Individual characteristics (risk orientation, tree growing experiences, andoccupation), and regional differences explain the probability of preference class membership. Our findings have important implications for enhancing afforestation strategies that improve social welfare of smallholders in various forest transition stages.

Details

Title: Which smallholders are willing to adopt Acacia mangium under long-term contracts? Evidence from a choice experiment study in Indonesia
Authors: Dwiko B Permadi (Author) - University of Western Australia
Michael Burton (Author) - University of Western Australia
Ram Pandit (Author) - University of Western Australia
Iain Walker (Author) - University of Canberra
Digby Race (Author) - Australian National University
Publication details: Land Use Policy, Vol.65, pp.211-223
Publisher: Pergamon
Date published: 2017
DOI: 10.1016/j.landusepol.2017.04.015
ISSN: 0264-8377
Organisation Unit: Tropical Forests and People Research Centre; University of the Sunshine Coast, Queensland; Forest Research Institute; Sustainability Research Cluster
Language: English
Record Identifier: 99450555602621
Output Type: Journal article

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