The carbon efficiency of oil palm plantations: an opportunity cost analysis

The introduction and expansion
of oil palm in Indonesia reflects the crop’s
economic attractiveness and benefits, but the social interactions between
companies and local communities have had a mixed track record that requires attention. To some extent, oil
palm plantations have been portrayed as costly from social and environmental perspectives.
To understand the economic benefits of palm oil production, we analyzed both private and financial returns at the
plantation level as well as the return to labour. Socially, interaction areas were identified as the result of labour
requirements of oil palm plantations and the profitability of independent and plasma smallholders’ plantations.