Economic Development, Food Demand and the Consequences for Agricultural Resource Requirements (Indonesia)

Adam Briggs and Shyamal Chowdhury ()

No 211538, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: We analyse food demand patterns of Indonesian households from a resource intensity perspective, and quantify the impact of changed demand patterns on the use of three major resource inputs – fossil fuel, land and water – in agricultural production. Using Indonesian Family Life Survey (IFLS) data, 13 major food items (which constitute 70% of food expenditure) are categorised into low, moderate and high resource intensity, and income elasticity and Engel curves are estimated for the period from 1997 to 2007. Our results show that income growth in Indonesia is associated with demand patterns that are more resource intensive. By 2007, per capita requirements of fossil fuel, land and water increased by 42.7% (3.13 MJ), 44.9% (1.24 m2) and 50.4% (2.1 KL) respectively relative to 1997. The results imply that at least for Indonesia, changed food demand patterns resulting from economic development will increase the demand for natural resources substantially.

Keywords: Consumer/Household Economics; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 41
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-env and nep-sea
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Related works:
Working Paper: Economic Development, Food Demand and the Consequences for Agricultural Resource Requirements (Indonesia) (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:211538

DOI: 10.22004/ag.econ.211538

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