Oil palm production in the 20th century and beyond: the impact of climate change in Malaysia

The widespread concern about the devastating impact of climate change, especially in the agricultural sector, has become severe. This paper aims to explore and predict the impact of climate change on oil palm production using future climate conditions projected by the National Water Research Institu...

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Main Authors: Wan Mohd Noor, Wan Noranida, Mohd Nawi, Nolila, Buda, Mark, Kai Seng, Kelly Wong
Format: Article
Language:English
Published: Department of Agribusiness, Universitas Muhammadiyah Yogyakarta 2024
Online Access:http://psasir.upm.edu.my/id/eprint/113640/
http://psasir.upm.edu.my/id/eprint/113640/1/113640.pdf
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author Wan Mohd Noor, Wan Noranida
Mohd Nawi, Nolila
Buda, Mark
Kai Seng, Kelly Wong
author_facet Wan Mohd Noor, Wan Noranida
Mohd Nawi, Nolila
Buda, Mark
Kai Seng, Kelly Wong
author_sort Wan Mohd Noor, Wan Noranida
building UPM Institutional Repository
collection Online Access
description The widespread concern about the devastating impact of climate change, especially in the agricultural sector, has become severe. This paper aims to explore and predict the impact of climate change on oil palm production using future climate conditions projected by the National Water Research Institute of Malaysia (NAHRIM). An error correction model (ECM) and autoregressive distributed lags (ARDL) cointegration approach were applied to assess the short-run and long-run impact of climate change on oil palm production. The estimated short-run coefficients disclosed that the oil palm own price and fertilizer use positively affected oil palm production in the second lag period, and increased acreage benefited oil palm production in the long run. The rainfall variable negatively affected the second lag period but positively rose oil palm production in the long run. The results of forecasting analysis revealed that SN1 (minimum climate variability), SN2 (maximum climate variability), and SN3 (average climate variability) would increase oil palm production by 5%, 1%, and 2%, respectively. Meanwhile, the oil palm yield would rise from 16.73 t/ha in 2020 to 16.89 t/ha in 2030 under SN1. However, with maximum rainfall, the yield would drop to 16.41 t/ha in 2030. Overall, climate change would likely reduce oil palm yield. This research could serve as empirical guides for policymakers and oil palm stakeholders in terms of practical and policy implications to adapt to climate change-related risks and uncertainties. The practical cover investments in technologies, such as developing drought-tolerant and early-maturity crop varieties, boosting water saving, and reducing evapotranspiration.
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institution Universiti Putra Malaysia
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language English
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publisher Department of Agribusiness, Universitas Muhammadiyah Yogyakarta
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spelling upm-1136402024-11-25T01:27:16Z http://psasir.upm.edu.my/id/eprint/113640/ Oil palm production in the 20th century and beyond: the impact of climate change in Malaysia Wan Mohd Noor, Wan Noranida Mohd Nawi, Nolila Buda, Mark Kai Seng, Kelly Wong The widespread concern about the devastating impact of climate change, especially in the agricultural sector, has become severe. This paper aims to explore and predict the impact of climate change on oil palm production using future climate conditions projected by the National Water Research Institute of Malaysia (NAHRIM). An error correction model (ECM) and autoregressive distributed lags (ARDL) cointegration approach were applied to assess the short-run and long-run impact of climate change on oil palm production. The estimated short-run coefficients disclosed that the oil palm own price and fertilizer use positively affected oil palm production in the second lag period, and increased acreage benefited oil palm production in the long run. The rainfall variable negatively affected the second lag period but positively rose oil palm production in the long run. The results of forecasting analysis revealed that SN1 (minimum climate variability), SN2 (maximum climate variability), and SN3 (average climate variability) would increase oil palm production by 5%, 1%, and 2%, respectively. Meanwhile, the oil palm yield would rise from 16.73 t/ha in 2020 to 16.89 t/ha in 2030 under SN1. However, with maximum rainfall, the yield would drop to 16.41 t/ha in 2030. Overall, climate change would likely reduce oil palm yield. This research could serve as empirical guides for policymakers and oil palm stakeholders in terms of practical and policy implications to adapt to climate change-related risks and uncertainties. The practical cover investments in technologies, such as developing drought-tolerant and early-maturity crop varieties, boosting water saving, and reducing evapotranspiration. Department of Agribusiness, Universitas Muhammadiyah Yogyakarta 2024-06 Article PeerReviewed text en cc_by_sa_4 http://psasir.upm.edu.my/id/eprint/113640/1/113640.pdf Wan Mohd Noor, Wan Noranida and Mohd Nawi, Nolila and Buda, Mark and Kai Seng, Kelly Wong (2024) Oil palm production in the 20th century and beyond: the impact of climate change in Malaysia. Agraris, 10 (1). pp. 55-69. ISSN 2407-814X; eISSN: 2527-9238 https://agraris.umy.ac.id/index.php/agraris/article/view/33 10.18196/agraris.v10i1.33
spellingShingle Wan Mohd Noor, Wan Noranida
Mohd Nawi, Nolila
Buda, Mark
Kai Seng, Kelly Wong
Oil palm production in the 20th century and beyond: the impact of climate change in Malaysia
title Oil palm production in the 20th century and beyond: the impact of climate change in Malaysia
title_full Oil palm production in the 20th century and beyond: the impact of climate change in Malaysia
title_fullStr Oil palm production in the 20th century and beyond: the impact of climate change in Malaysia
title_full_unstemmed Oil palm production in the 20th century and beyond: the impact of climate change in Malaysia
title_short Oil palm production in the 20th century and beyond: the impact of climate change in Malaysia
title_sort oil palm production in the 20th century and beyond: the impact of climate change in malaysia
url http://psasir.upm.edu.my/id/eprint/113640/
http://psasir.upm.edu.my/id/eprint/113640/
http://psasir.upm.edu.my/id/eprint/113640/
http://psasir.upm.edu.my/id/eprint/113640/1/113640.pdf