Hydrological and economic effects of oil palm cultivation in Indonesian peatlands

Oil palm has increasingly been established on peatlands throughout Indonesia. One of the concerns is that the drainage required for cultivating oil palm in peatlands leads to soil subsidence, potentially increasing future flood risks. This study analyzes the hydrological and economic effects of oil palm production in a peat landscape in Central Kalimantan. We examine two land use scenarios, one involving conversion of the complete landscape including a large peat area to oil palm plantations, and another involving mixed land use including oil palm plantations, jelutung (jungle rubber; (Dyera spp.) plantations, and natural forest. The hydrological effect was analyzed through flood risk modeling using a high-resolution digital elevation model. For the economic analysis, we analyzed four ecosystem services: oil palm production, jelutung production, carbon sequestration, and orangutan habitat. This study shows that after 100 years, in the oil palm scenario, about 67% of peat in the study area will be subject to regular flooding. The flood-prone area will be unsuitable for oil palm and other crops requiring drained soils. The oil palm scenario is the most profitable only in the short term and when the externalities of oil palm production, i.e., the costs of CO2 emissions, are not considered. In the examined scenarios, the social costs of carbon emissions exceed the private benefits from oil palm plantations in peat. Depending upon the local hydrology, income from jelutung, which can sustainably be grown in undrained conditions and does not lead to soil subsidence, outweighs that from oil palm after several decades. These findings illustrate the trade-offs faced at present in Indonesian peatland management and point to economic advantages of an approach that involves expansion of oil palm on mineral lands while conserving natural peat forests and using degraded peat for crops that do not require drainage.

Forests as landscapes of social inequality: tropical forest cover and land distribution among shifting cultivators

Can social inequality be seen imprinted in a forest landscape? We studied the relationship between land holding, land use, and inequality in a peasant community in the Peruvian Amazon where farmers practice swidden-fallow cultivation. Longitudinal data on land holding, land use, and land cover were gathered through field-level surveys (n = 316) and household interviews (n = 51) in 1994/1995 and 2007. Forest cover change between 1965 and 2007 was documented through interpretation of air photos and satellite imagery. We introduce the concept of “land use inequality” to capture differences across households in the distribution of forest fallowing and orchard raising as key land uses that affect household welfare and the sustainability of swidden-fallow agriculture. We find that land holding, land use, and forest cover distribution are correlated and that the forest today reflects social inequality a decade prior. Although initially land-poor households may catch up in terms of land holdings, their use and land cover remain impoverished. Differential land use investment through time links social inequality and forest cover. Implications are discussed for the study of forests as landscapes of inequality, the relationship between social inequality and forest composition, and the forest-poverty nexus.