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Table 7 Elasticity values, market shares, and conversion rates

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

  Variables description Value Sources
\( {\varepsilon}_y^{\mathrm{EU}} \) Palm oil own price demand elasticity in the European Union 0.38 FAPRI (2013) elasticities database
\( {\varepsilon}_y^{\mathrm{ROW}} \) Palm oil own price demand elasticity in the rest of the world 0.38
\( {\varepsilon}_y^{\mathrm{Dom}} \) Palm oil own price demand elasticity in Indonesia 0.38
\( {\alpha}_y^{\mathrm{EU}} \) CPO export demand share of total output to EU markets 0.22 Calculated based on Trade data (2010)
\( {\alpha}_y^{\mathrm{ROW}} \) CPO export demand share of total output to ROW markets 0.52
\( {\alpha}_y^{\mathrm{Dom}} \) CPO domestic demand share 0.26
v Land Elasticity of land supply 0.3 Salhofer (2000); Jafari and Jamal (2015, 2016, 2011); Jamal and Jafari (2011).
v Lab Elasticity of labor supply 0.55
v Cap Elasticity of capital supply 2
v Chem Elasticity of agrochemical supply 2
γ Elasticity of forest conversion with respect to oil palm expansion 0.19 Gunarso et al. (2013)
μ Elasticity of peatland conversion with respect to oil palm expansion 0.35