Determinants of illegal logging in Indonesia: an empirical analysis for the period 1996–2010

Yaoyao Ji, Ram Ranjan*, Chi Truong

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

Abstract

Illegal logging is a significant problem in Indonesia, which is one of the few countries with a large forest area. In this study, we investigate the factors that affect harvesting and supply of illegal timber from Indonesia to China and Japan. Moreover, we investigate the factors that lead to the demand of Indonesian illegal timber from China and Japan. A simultaneous-equation econometric model of illegally logged timber demand and supply is developed and tested using the annual data over the period 1996–2010. We find that corruption and decentralization in Indonesia have significant and positive impacts on the illegally logged timber supply while excess demand in Japanese construction and furniture industries as well as Japan’s housing starts are the significant factors that affect the illegal logging in Indonesia. The law enforcement or policies aimed at reducing illegal harvesting in Indonesia are found to be more effective than the policies targeting the import of illegally logged timber into Japan and China.

Original languageEnglish
Pages (from-to)197-220
Number of pages24
JournalJournal of Sustainable Forestry
Volume37
Issue number2
DOIs
Publication statusPublished - 17 Feb 2018

Keywords

  • deforestation
  • illegal logging in Indonesia
  • illegal timber demand
  • Illegal timber trade
  • simultaneous-equation model

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