Table 5 Single commodity partial equilibrium model of the Indonesian oil palm
Commodity demand equations | |
\( {\widehat{D}}_y^M=\left(1-{\alpha}_y^{\mathrm{EU}}-{\alpha}_y^{\mathrm{ROW}}\right)\ {\widehat{D}}_{\mathrm{y}}^{\mathrm{Dom}}+{\alpha}_y^{\mathrm{EU}}{\widehat{D}}_y^{\mathrm{EU}}+{\alpha}_y^{\mathrm{ROW}}{\widehat{D}}_y^{\mathrm{ROW}} \) | 1 |
\( {\widehat{D}}_y^D=\left({\widehat{P}}_y^M-{\widehat{U}}_y^{\mathrm{Dom}}\right){\varepsilon}_y^{\mathrm{Dom}} \) | 2 |
\( {\widehat{D}}_y^{\mathrm{EU}} = \left({\widehat{P}}_y^{\mathrm{EU}}-{\widehat{U}}_y^{\mathrm{EU}}\right)\ {\varepsilon}_y^{\mathrm{EU}} \) | 3 |
\( {\widehat{D}}_y^{\mathrm{ROW}}=\left({\widehat{P}}_y^{\mathrm{ROW}}-{\widehat{U}}_y^{\mathrm{ROW}}\right){\varepsilon}_y^{\mathrm{ROW}} \) | 4 |
Derived demand under locally constant return to scale condition | |
\( {\widehat{D}}_i={\displaystyle {\sum}_{j=1}^n{c}_j{\sigma}_{i j}\;{\widehat{P}}_j^M+{\widehat{S}}_y^{\mathrm{Dom}}} \) | 5 |
Zero profit condition | |
\( {\widehat{P}}_y^M={\displaystyle {\sum}_{i=1}^n}{c}_i{\widehat{P}}_i^M \) | 6 |
Input supply equations for two subsector | |
\( {\widehat{S}}_i={v}_i{\widehat{P}}_i^M \) | 7 |
Forest and peatland conversion functions | |
\( {\widehat{D}}_{\mathrm{Fst}}=\gamma {\widehat{D}}_{\mathrm{Land}} \) | 8 |
\( {\widehat{D}}_{\mathrm{Ptls}}=\mu {\widehat{D}}_{\mathrm{Land}} \) | 9 |
Factor market clearing conditions | |
\( {\widehat{D}}_i={\widehat{S}}_i \) | 10 |
Commodity market clearing conditions | |
\( {\widehat{D}}_y^M={\widehat{S}}_y \) | 11 |