Determinants of illegal logging in Indonesia: An empirical analysis for the period 1996–2010. (17th February 2018)

• Record Type: Journal Article
• Authors: Ji, Yaoyao; Ranjan, Ram; Truong, Chi
• Is Part Of: Journal of sustainable forestry. Volume 37:Number 2(2018)
• Page Start: 197
• Page End: 220
• Publication Date: 2018-02-17
• Subjects: Deforestation -- illegal logging in Indonesia -- illegal timber demand -- Illegal timber trade -- simultaneous-equation model; Sustainable forestry -- Periodicals; 634.905
• DOI: 10.1080/10549811.2017.1369436
• Languages: English
• ISSNs: 1054-9811

Abstract

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.