Technical efficiency and farmland expansion: Evidence from oil palm smallholders in Indonesia
Open accessAbstract
This study asks whether innovation in smallholder production reduces or accelerates land expansion. Even though innovation in agriculture has reduced land expansion globally, rebound effects can occur locally and often at the expense of vital ecosystem functions. In contrast to other studies that investigate rebound effects in response to technological innovation, our study focuses on technical efficiency, the remaining component of total factor productivity. We use a short panel dataset from smallholder oil palm farmers in Sumatra, Indonesia, and develop a two‐stage approach in which we estimate technical efficiency and determine its land expansion effect. Our findings suggest that technical efficiency and in particular land efficiency are low, indicating that 50% of the currently cultivated land could be spared. However, the land‐sparing effect of increasing technical efficiency is at risk of being offset by about half due to a rebound effect. To maximize the conservation potential from increasing smallholder efficiency, policies need to simultaneously incentivize well‐functioning land markets and stricter protection measures for land with high ecological value to mitigate local rebound effects.
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- Authors
- Dalheimer, B., Kubitza, C., & Brümmer, B.
- Affiliations
- University of Göttingen (DE)
- German Institute for Global and Area Studies (DE)
- Corresponding author
- Dalheimer, Bernhard
- Venue
- American Journal of Agricultural Economics
- Publisher
- Wiley
- Published
- 2021-10-11
- Volume
- 104
- Issue
- 4
- Pages
- 1364-1387
- ISSN
- 0002-9092 (ISSN-L)
- 1467-8276
- OpenAlex
- W3205845300
- Cited by
- 21
- References
- 80
- Citations by year
- 2026: 9 · 2025: 6 · 2024: 4 · 2023: 2
- FWCI
- 0.81
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- Locations
- American Journal of Agricultural Economics (publishedVersion, cc-by)
- Social Science Open Access Repository (GESIS – Leibniz Institute for the Social Sciences) (submittedVersion, cc-by)
- GoeScholar The Publication Server of the Georg-August-Universität Göttingen (Georg-August-Universität Göttingen) (submittedVersion, cc-by)
- Funders
- Deutsche Forschungsgemeinschaft (192626868)
- Topics
- Physical Sciences › Environmental Science › Ecology › Oil Palm Production and Sustainability
- Social Sciences › Decision Sciences › Management Science and Operations Research › Efficiency Analysis Using DEA
- Life Sciences › Agricultural and Biological Sciences › General Agricultural and Biological Sciences › Agriculture, Land Use, Rural Development
- Keywords
- technical efficiency, land expansion, rebound effect, oil palm smallholders, agricultural innovation, land market, Sumatra, conservation potential
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
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