Skip to main content

Advertisement

Table 4 Definitions of variables of model

From: Risks and opportunities from key importers pushing for sustainability: the case of Indonesian palm oil

Endogenous variables
\( {D}_y^M \) Market demand for final output (y = CPO)
\( {D}_y^{\mathrm{EU}},{D}_y^{\mathrm{ROW}} \) Demand for y from EU and Rest of the World (ROW), respectively.
\( {D}_y^{\mathrm{Do} m},{S}_y^{\mathrm{Do} m} \) Domestic demand and domestic supply for y, respectively.
D i , S i Derived demand for and supply of ith primary input
\( {P}_y^M \) Market price of y
\( {P}_y^{\mathrm{EU}},{P}_y^{\mathrm{ROW}} \) Export price of y to EU and rest of the world (ROW)
D frst, D ptls Demand for forest and peatland conversion, respectively
Parameters
\( {\varepsilon}_y^{\mathrm{Dom}} \) Own price elasticity of domestic demand for y.
\( {\varepsilon}_y^{\mathrm{EU}},{\varepsilon}_y^{\mathrm{ROW}}, \) Export price elasticity of EU and rest of the world (ROW) demand for y.
σ ij Allen substitution elasticity between input i and j
\( {\alpha}_y^{\mathrm{EU}},\ {\alpha}_y^{\mathrm{ROW}} \) Share export demands from of EU and ROW for y in total market demand
\( {\alpha}_y^{\mathrm{Dom}} \) Share of domestic demand for y in total market demand
c i The cost share of ith primary input with respect to total cost of producing y
v i supply price elasticity of ith input
γμ Forest and peatland conversion elasticities with respect to total land demand, respectively.
Exogenous variables (policy shocks)
\( {U}_y^{\mathrm{Dom}} \) Price equivalent shift factor in domestic demand schedules for y
\( {U}_y^{\mathrm{EU}},{U}_y^{\mathrm{ROW}} \) Price equivalent shift factors in EU and ROW export demand schedules for y