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Sustainable Production Policy Impact on Palm Oil Firms’ Performance: Empirical Analysis from Indonesia

机译:可持续生产政策对棕榈油公司的绩效影响:印度尼西亚的实证分析

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摘要

Sustainable production is a key element of sustainable development. The concept was first introduced in the United Nations Rio Earth Summit in 1992 and has become an important item on the management of industries. In conjunction, the government of Indonesia introduced the Indonesian Sustainable Palm Oil (ISPO) policy in 2011 to adhere to international sustainability standards of Sustainable Palm Oil and of reducing emissions from deforestation and forest degradation (REDD+). This study investigates the impact of ISPO policy on palm oil firms’ performance. Using a sample of 409 palm oil firms of the Indonesian palm oil sector for the years 2010 and 2015, we employed a regression discontinuity (RD) with a difference-in-differences approach to explore the effect of the policy on firms’ performance. The RD results show that the introduction of the policy significantly reduced large firms’ profit by IDR 75m (equivalent to USD 5250); the negative effect of the policy increased with firm size. Furthermore, there was a significant reduction in performance for firms that promptly purchased land before the policy’s ban on land expansion. These findings suggest that a punitive sustainable production policy does not sustain the palm oil sector. Nevertheless, large companies that complied with international sustainability measures ahead of the introduction of the domestic policy benefited.
机译:可持续生产是可持续发展的关键要素。该概念于1992年在联合国Rio地球峰会中介绍,已成为行业管理的重要项目。结合,印度尼西亚政府在2011年介绍了印度尼西亚可持续棕榈油(ISPO)政策,遵守可持续棕榈油的国际可持续性标准,并减少森林砍伐和森林退化(REDD +)的排放。本研究调查了ISPO政策对棕榈油公司绩效的影响。 2010年和2015年使用印度尼西亚棕榈油部门的409棕榈油公司的样本,我们雇用了回归不连续性(RD),差异差异探讨了对公司业绩政策的影响。 RD结果表明,该政策的引入明显减少了IDR 75M的大公司利润(相当于5250美元);政策的负面影响与坚定的规模增加。此外,在政策禁止土地扩张之前,迅速购买土地的公司的表现显着减少。这些调查结果表明,惩罚性的可持续生产政策不维持棕榈油部门。尽管如此,遵守国际可持续发展措施的大型公司在引入国内政策的引入中受益。

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