Economic development, food demand and the consequences for agricultural resource requirements: an application to Indonesia

Adam Briggs, Shyamal Chowdhury

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

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 data, 13 major food items (which constitute 70 per cent 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 per cent (3.13 MJ), 44.9 per cent (1.24 m2) and 50.4 per cent (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.

Original languageEnglish
Pages (from-to)420-437
Number of pages18
JournalAustralian Journal of Agricultural and Resource Economics
Volume62
Issue number3
DOIs
Publication statusPublished - Jul 2018
Externally publishedYes

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