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Economic and ecological trade-offs of agricultural specialization at different spatial scales

Author

Listed:
  • Stephan Klasen

    (Georg-August-University Göttingen)

  • Katrin M. Meyer

    (Georg-August-University Göttingen)

  • Claudia Dislich

    (Georg-August-University Göttingen)

  • Michael Euler

    (Georg-August-University Göttingen)

  • Heiko Faust

    (Georg-August-University Göttingen)

  • Marcel Gatto

    (Georg-August-University Göttingen)

  • Elisabeth Hettig

    (GIGA Hamburg)

  • Dian N. Melati

    (Georg-August-University Göttingen)

  • I. Nengah Surati Jaya

    (Bogor Agricultural University)

  • Fenna Otten

    (Georg-August-University Göttingen)

  • César Perez

    (Georg-August-University Göttingen)

  • Stefanie Steinebach

    (Georg-August-University Göttingen)

  • Suria Tarigan

    (Bogor Agricultural University)

  • Kerstin Wiegand

    (Georg-August-University Göttingen)

Abstract
Specialization in agricultural systems leads to trade-offs between economic gains and ecosystem functions. Economic gains can be maximized when production activities are specialized at increasingly broader scales (from the household to the village, region or above), particularly when markets for outputs and inputs function well and allow specialization as well as high levels of food security. Conversely, a tendency toward specialization likely reduces biodiversity and significantly limits ecosystem functions at the local scale. When agricultural specialization increases and moves to broader scales as a result of improved infrastructure and markets, ecosystem functions can also be endangered at broader spatial scales. Policies to improve agricultural incomes through improvements in infrastructure and the functioning of markets thus affects the severity of the trade-offs. This paper takes Jambi province in Indonesia, a current hotspot of rubber and oil palm monoculture, as a case study to illustrate these issues. In doing so, it empirically investigates the trade-offs between economic gains and ecosystem functions for three spatial levels of scale (i.e. household, village, and region) and discusses ways to resolve these trade-offs.

Suggested Citation

  • Stephan Klasen & Katrin M. Meyer & Claudia Dislich & Michael Euler & Heiko Faust & Marcel Gatto & Elisabeth Hettig & Dian N. Melati & I. Nengah Surati Jaya & Fenna Otten & César Perez & Stefanie Stein, 2015. "Economic and ecological trade-offs of agricultural specialization at different spatial scales," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 178, Courant Research Centre PEG.
    • Handle: RePEc:got:gotcrc:178
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    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_178.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Ecosystem services; economies of scale; Indonesia; monoculture; oil palm; rubber;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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