DATA_150_Dayshelay

The Palm Oil Industry’s Climatological Effects in Tropical Latitudes

by Dayshelay Evans

Word Count: 2662

This literature review will focus on the tropical areas located within Indonesia its primary subject, due to its status as a developing nation and its tendency to be impacted by climatological events. Additionally, the extensive presence of palm oil plantations also served as a factor in the selection of these nations. As of 2006, Indonesia is designated as the largest producer of crude palm oil on the planet. (Ayompe et al., 2020) The nature of these plantations leads to disruption of the natural ecosystem and the subsequent collapse of many ecosystem services. Palm oil plants contribute to a monoculture that is unable to act as a substitute for typical diverse ecosystem.

Spatial measurements appeared to be the most significant theme out of the literature observed while compiling the annotated bibliography. This is due to the latitudinal-specific nature of this topic. It was especially useful when examining emissions related to carbon dioxide, nitrous oxide, and other greenhouse gases. Some texts used this to highlight the regional impacts of tropical deforestation. (Lawrence & Vandecar, 2015) Additionally, many texts utilized algorithmic models, which further contributed to my understanding by adding both a visual component as well as the ability to account for multiple outcomes. Of course, these algorithms utilize previously established data to indicate possible outcomes.

The Reliance of Tropical Nations on a Hyper-perceptive Agricultural Industry

Approximately one-fourth of the planet’s habitable land has been converted for agricultural use. This is strongly correlated with the increase in human population and subsequent need for resources such as food, fresh water, fuel, etc. However, in our quest to meet the needs of all people, the human race has massively contributed to climate change. Global land use changes are responsible for approximately 14% of greenhouse gases in the atmosphere.

Crop simulation models suggest that a reduction in agricultural processes would have the greatest effect on the tropics; the nations that utilize the little food they do generate as exports for financial gain often struggle to produce enough to feed their own populations. (Cerri et al., 2007) Due to the specialized environment, the vegetation located in the tropics, which primarily consists of forests and shrublands, massively contributes to the economy. A 2018 study demonstrated the disproportionate allocation of wealth resulting from the financial yield of forested areas. This contributes to a preexisting cycle of continuous land monopolization among elite classes. Individuals who were considered poor were more likely to find benefits from external sources. These practices contributed to a redistribution of power that leaned in favor of the village authorities. However, elite classes are synonymous with leadership positions in certain cases. (Andersson, et al., 2018)

Nations located in the tropics are designated as having significantly less wealth than their first-world counterparts, which is attributed to the functioning of economic systems. Tropical environments, and therefore the agriculture occurring there, are sensitive to external stimuli or anything disruptive to its homeostasis. Examples of factors that modify the economic status of tropical nations include the presence of disease, absence of technology sources, the frequency of natural disasters, and average temperature, the latter of which are largely exacerbated by climate change whilst also contributing to the overall yield of the agricultural industry. Tropical climates are decidedly unique from locations in the respective northern and southern hemispheres; the difference stems from the manner in which the Earth rotates on its axis, resulting in varying levels of solar energy being delivered to temperate zones while tropical areas, which lie closer to the Equator in the latitudinal sense, experience a constant and unwavering level of radiation. While tropical nations do not experience seasons as varied as those in temperate zones, they do experience both a dry season and a wet season. (Hsiang & Meng, 2015)

How Palm Oil Plantations Disrupt Climate and Ecosystem Services

Over time, concerns have arisen over the expansion of palm oil plants and their lack of sustainability. They have been associated by many negative practices such as deforestation, loss of both habitat and biodiversity, fragmentation of forests, disruption of food chains, deterioration and erosion of soil, pollution of nearby fluids such as air and water, and modifications to the hydrologic cycle. The latter results in changes to the frequency of precipitation in the region which can also modify the success of agricultural ventures. There are negative externalities associated with acts associated with the production of crude palm oil. These include the disposal of waste products in an irresponsible manner, the overuse of nitrogen-rich fertilizers, the use of gasoline in weed cutters as well as the utilization of pesticides. (Ayombe et al., 2020)

For tropical nations further along in their development than others, this brings about the question if they are required to be conscious of sustainability practices. Because these economies are merely emerging, they have a fragile nature and little room for flexibility. In countries such as Indonesia that have grown to rely on palm oil production, their business practices possess very little flexibility. (Michaelowa & Michaelowa, 2015) When palm oil plantations expand into tropical communities, they fail to provide services such as carbon fixation, water supply and flood control, as well as soil maintenance and ecotourism, all of which contribute to the ease of development in regards to human civilization. (Shimamoto CY et al., 2018)

Deforestation resulting from palm oil production contributes to an increase of sediment traveling within waterways. While cleared land experiences relatively high erosion rates (~950 t ha-1y-1), those from established palm oil plantations are also fairly high at ~90 t ha-1y-1. The amount of sediment flowing through palm oil plantations are approximately 2-8 times larger than samples taken from further upstream where natural forests are present. These loads of sediment bring with them pesticides, herbicides, and nitrogen fertilizers, all of which contribute negatively to the quality of drinking water.

Figure 1. Riparian buffers are a naturally occurring ecosystem service that relate specifically to the erosion and deposition of sediment. When palm oil plantations are erected, riparian buffers and naturally occurring vegetative systems are often destroyed. While more convenient for those who establish palm oil plantations, the large pathways used to navigate these areas properly and facilitate efficiency possess little vegetation to secure sediments, therefore increasing the ease of erosion and water contamination. The above image displays a naturally-occurring riparian buffer to the left and a palm oil plantation on the right.

In addition to siphoning ecosystem services, the introduction of palm oil to these locations contributes to the production of a greenhouse gas known as nitrous oxide. The agriculture industry is responsible for up to 85% of nitrous oxide emissions. This is due to fertilization that utilizes nitrogen compounds and organic rich materials. Said emissions are exacerbated by the latitude’s characteristically warm climate. The conversion of natural forests and shrublands contributes to further emissions of a wide array of greenhouse gases such as carbon dioxide, methane, and of course, nitrous oxide. This can be attributed to a practice known as “slash and burn” agriculture.

Figure 2. The above image displays an area in which the slash and burn agriculture technique was applied. The slash and burn technique entails cutting away or chopping down any existing vegetation; then, to further clear the area, any remaining vegetation is burned along with the land that surrounds it. The early makings of a palm oil plantation are visible in the background. This landscape is in a later stage of development and rejuvenation, as shown by the presence of small, green, shrublike plants.

In Indonesia, peatlands are often cleared and drained, resulting in the disruption of both the local ecosystem and hydrological cycle. This poses a greater issue because peatlands possess >30% more carbon than mineral soils, which only have >10% carbon content. Consequently, when peatlands are burned, the release of greenhouse gases is exacerbated. For example, Indonesia contributed more carbon dioxide into the atmosphere than the entirety of Europe. Time is also a factor in the emissions of palm oil plants; while a plantation existing for one year has a massive output of greenhouse gases, a plantation existing for 12 years is capable of functioning as a carbon sink. In the observed locations, nitrous oxide production was halved from the emissions of plantations that had existed for a single year. However, palm oil plantations constructed from peatlands was in fact still capable of emitting carbon dioxide but was also emitting three times more nitrous oxide than a plantation housed on mineral soil. (Skiba et al., 2020)

The Interactions Between Palm Oil Corporations and Locals

The palm oil industry is often introduced to developing countries as a means of bolstering their respective economies. The groups of indigenous people that take part in farming palm oil are regarded as “smallholders”. There are two categories of smallholders, the first of them being directly tied to a larger corporation, and the other being independent producers. Observed villages with livelihoods based in subsistence farming displayed poor infrastructure due to isolation and a lack of interdependence. There were also greater rates of poverty. However, infant malnutrition rates were lower; this is attributed to farmers producing a wider variety of food sources and medicinal plants.

Villages situated near palm oil plantations experienced greater social and environmental degradation from 2000 to 2014. The introduction of palm oil plantations contributed to a transition in economic structure. Communities that had previously relied on subsistence farming saw a generally negative social and environmental trend. They experienced a notable increase in the frequency of both flooding and landslides; however, the researchers attributed this to the rainy nature of the previously cleared land combined with the collapse of ecosystem services that aided soil retention. Areas that had previously had a market-oriented economy also saw negative trend in the social and environmental variables. Both air and water pollution were more severe. However, they also experienced an, although less drastic than the previous variables, increase in their financial standing. Both areas experienced a relatively similar rate of forest conversion, meaning >60% of the forest was covered.

Socioeconomic factors in villages with an existing market economy displayed improvement over the first ten years. This includes access to healthcare and improvements in education. Those in areas previously reliant on subsistence farming experienced the opposite effects. These villages saw the loss of many indicators of wellbeing, such as electricity and adequate sanitation and energy. However, these elements reemerged upon the 11-14 year threshold where palm oil production would begin to hit its stride.

Conflicts occurred at a more frequent rate in areas that previously hosted a market-oriented economy. The literature attributes this to an inadequate distribution of funds on the part of larger corporation, subsequently reducing positive relations with the community. (Santika et al., 2019) A 2012 study indicated that migrant workers held more palm oil plots, and therefore more opportunity for financial gain, than the local (non-transient) population. However, approximately 45% of family members surveyed indicated they participated in activities, other than palm oil cultivation, that contributed to their household income. The production of palm oil contributed approximately 61% of total family income. This is value is a generalization—Data collected from Sumatra indicated that palm oil was a greater contributor to household income; surveys generated values ranging from 63% to 78%. However, areas in Kalimantan landed on the lower end of the distribution curve with surveys generating values ranging from as little as 31% to the average 61%. It is worth noting that these values possessed elements of a geographical correlation. For example, areas in South Kalimantan displayed the lowest reliance on palm oil while areas in East Kalimantan fell closer to the middle of the distribution curve. Monthly per capita income, based on family income data gathered in 2009, found that areas with a greater palm oil presence, such as Sumatra, were slightly more lucrative than household samples collected from their counterparts. (Budidarsono S, 2012) In formerly subsistence-based villages, many conflicts occurred at the beginning phase of converting forested areas to plantations. This is attributed to indigenous people’s feeling they were not adequately compensated for their land. (Santika et al., 2019)

Overall, palm oil has a significantly positive impact on the financial status of Indonesian households. However, these effects can be clustered which is due to different households having varied access to resources such as adequate labor, land to farm on, and investment funds. Research suggests that at least half of the total financial benefits from palm oil adoptions are the result of reallocation of household labor to other profitable activities rather than a direct product of an association with the palm oil industry. Households that start off with a greater amount of resources such as better access to land and labor experience an overproportional amount of benefits.

The capitalistic nature of the palm oil industry allows for those who possess land or greater financial standing to increase their funds while those already experiencing monetary distress continuously find themselves at the lower end of the financial spectrum; in some cases, the disparity increases drastically. With the global demand for palm oil increasing at a steady rate, the market’s productivity seems to have trouble keeping pace. However, this poses as an opportunity for smallholders, as palm oil can be sold for a higher price than agricultural alternatives. Low production palm oil locations have been known to financially outperform high productivity locations that house rubber plants. (Krishna et al., 2017)

The Ominous Interdependence of the Climatological and Economic Cycles

While the palm oil has many explicit effects on nations in the tropics, there is an arguably greater issue looming overhead: The palm oil industry does provide opportunities necessary for the development of smaller nations. However, this field of study proves itself vulnerable to generalization, as many studies fail to acknowledge the ever-present disparity between social classes, even when palm oil is properly instituted. Developing nations, especially those as vulnerable as the tropics, have a price to pay in order to become financially stable. In the case of tropical nations, specifically Indonesia, may experience greater climatological impacts. This is an especially urgent matter as anywhere from one-third to three-fourths of the nations’ gross domestic product per capita is generated by palm oil production, even with the presence of other plants.

There is an inherent gap in the literature when questioning the relationship between economic growth in the tropics and climatological change. It is possible that there is a positive correlation between the two variables. However, it is best to refrain from speaking too broadly on this topic as to avoid spurious correlations. Additionally, scientific literature has not begun to address the financial role of western civilizations (primarily corporations such as Nestle) play in the tropics, but I digress. A possible research question would be as follows: How does the conversion of land in the tropics, specifically for the use of palm oil plantations, correlate with carbon dioxide output?

It is also necessary to state that a long-standing palm oil operation is not inherently negative in an environmental sense. After all, trees that yield palm oil are still plants and still possess the potential to act as carbon sinks. If palm oil is produced at a sustainable rate, as is often done by smallholders, and cultivated without the overuse of fertilizers (growth inducing compounds such as nitrogen and phosphorus) and pesticides while also responsibly disposing of wastewater and other byproducts, there is little room for negative environmental effects.

Problems arise when previously occupied land is converted using means such as slash and burn agriculture. This is especially problematic when massive amounts of land are converted at once, leaving little room for the existing ecosystem to repair itself. While at a loss for ecosystem services, this can mitigate immediate positive economic effects as resources become more and more costly. Only when a palm oil operation has reached a certain level of maturity will it begin to prove itself as a lucrative investment. However, ten years may be too late to remedy economic disparity.  

References

Andersson, K. P., Smith, S. M., Alston, L., Duchelle, A., Mwangi, E., Larson, A., . . . Wong, G. (2018). Wealth and the distribution of benefits from tropical forests: Implications for REDD+. Land Use Policy, 72, 510-522. doi:https://doi.org/10.1016/j.landusepol.2018.01.012. Ayompe, L. M., Schaafsma, M., & Egoh, B. N. (2021). Towards sustainable palm oil production: The positive and negative impacts on ecosystem services and human wellbeing. Journal of Cleaner Production, 278. doi:https://doi.org/10.1016/j.jclepro.2020.123914

Budidarsono S, D. S. (2012). Socioeconomic Impact Assessment of Palm Oil Production. Bogor, Indonesia: World Agroforestry Centre. Retrieved from http://apps.worldagroforestry.org/sea/Publications/files/policybrief/PB0049-12.pdf

Cerri C, S. G. (2007). Tropical Agriculture and Global Warming Impacts and Mitigation Options. Sci. agric, 64(1), 83-99. doi:https://doi.org/10.1590/S0103-90162007000100013

Hsiang, S. M., & Meng, K. C. (2015). Tropical Economics. American Economic Review, 105(5), 257-261. doi:http://dx.doi.org/10.1257/aer.p20151030

Krishna, V., Euler, M., Siregar, H., & Quaim, M. (2017). Differential livelihood impacts of palm oil expansion in Indonesia. Agricultural Economics, 48(5), 639-653. doi:https://doi.org/10.1111/agec.12363

Lawrence, D., & Vandecar, K. (2015). Effects of tropical deforestation on climate and agriculture. Nature Climate Change, 5, 27-36. doi:https://doi.org/10.1038/nclimate2430

Michaelowa, A., & Michaelowa, K. (2015, October 21). Do rapidly developing countries take up new responsibilities for climate change mitigation? Climactic Change, 133, 499-510. doi:https://doi.org/10.1007/s10584-015-1528-6

Shimamoto CY, P. A. (2018). Restoration of ecosystem services in tropical forests: A global meta-analysis. PLoS ONE. doi:https://doi.org/10.1371/journal.pone.0208523

Skiba, U., Hergoulc’h, K., Drewer, J., Meijide, A., & Knohl, A. (2020). Oil palm plantations are large sources of nitrous oxide, but where are the data to quantify the impact on global warming? Current Opinion in Environmental Sustainability, 47, 81-88. doi:https://doi.org/10.1016/j.cosust.2020.08.019