Natural resource prices and welfare: evidence from Indonesia’s coal and palm oil booms

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

PhD Seminar (Econ)

Date & time

Friday 10 May 2019


Seminar Room 1, #132 Crawford Building, Lennox Crossing, The ANU


Donny Pasaribu

This study measures the impact of coal and palm oil prices during Indonesia’s 2000s commodity boom on local poverty, household consumption, employment, and wages. The strategy is to exploit the within-country variation in exposure to each commodity, interacted with exogenous changes in global commodity prices. The research focuses on two of Indonesia’s main export commodities, coal and palm oil. The findings suggest that an increase in the price of either coal or palm oil decreases the poverty rate in districts that produce the commodity relative to districts that do not. However, the mechanisms through which poverty is affected differ for the two commodities.

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