Economic climate model of the oil palm production in Malaysia

Climate change is arguably one of the most important factors influencing agricultural production in developing countries such as Malaysia. Therefore, it becomes important to explore the impacts of climate change on agricultural yield and production. Cocoa was brought to Malaysia for commercial plant...

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Main Authors: Chizari, Ali, Mohamed, Zainalabidin, Shamsudin, Mad Nasir, Wong, Kelly Kai Seng
Format: Article
Language:English
Published: AI Publications 2017
Online Access:http://psasir.upm.edu.my/id/eprint/61536/1/Economic%20climate%20model%20of%20the%20oil%20palm%20production%20in%20Malaysia.pdf
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author Chizari, Ali
Mohamed, Zainalabidin
Shamsudin, Mad Nasir
Wong, Kelly Kai Seng
author_facet Chizari, Ali
Mohamed, Zainalabidin
Shamsudin, Mad Nasir
Wong, Kelly Kai Seng
author_sort Chizari, Ali
collection UPM
description Climate change is arguably one of the most important factors influencing agricultural production in developing countries such as Malaysia. Therefore, it becomes important to explore the impacts of climate change on agricultural yield and production. Cocoa was brought to Malaysia for commercial planting in the 1950s. The palm oil industry grew to become the first major commodity crop in Malaysia. This study applied the autoregressive distributed lag (ARDL) co-integration approach over the periods (1980 - 2014). There are two main methods including the Regional Climate Model (RCM) which can reasonably produce appropriate projections that can be used for climate scenario generation in a country-scale. Based on this information, this study considered three scenarios: 1) First Scenario, Rainfall changes 2) Second Scenario, Temperature changes 3) Third Scenario, Scenario 1 and 2 simultaneously. Preliminary results from the Autoregressive Distributed Lag (ARDL) model applied indicated that despite the projected changes in the climate variables (temperature and rainfall), in scenario 1 (the projected changes (5% increase) in rainfall). The result showed that climate variables (rainfall and temperature) have negative impacts on palm oil yield. The production trend is expected to be positive while changes in rainfall (5% increase), changes in temperature (2% increase) and simultaneous changes in rainfall (+5%) and temperature (+2%) will cause the yield to decline by 0.24%, 0.58%, and 0.82% respectively.
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spelling upm.eprints-615362022-05-25T03:02:22Z http://psasir.upm.edu.my/id/eprint/61536/ Economic climate model of the oil palm production in Malaysia Chizari, Ali Mohamed, Zainalabidin Shamsudin, Mad Nasir Wong, Kelly Kai Seng Climate change is arguably one of the most important factors influencing agricultural production in developing countries such as Malaysia. Therefore, it becomes important to explore the impacts of climate change on agricultural yield and production. Cocoa was brought to Malaysia for commercial planting in the 1950s. The palm oil industry grew to become the first major commodity crop in Malaysia. This study applied the autoregressive distributed lag (ARDL) co-integration approach over the periods (1980 - 2014). There are two main methods including the Regional Climate Model (RCM) which can reasonably produce appropriate projections that can be used for climate scenario generation in a country-scale. Based on this information, this study considered three scenarios: 1) First Scenario, Rainfall changes 2) Second Scenario, Temperature changes 3) Third Scenario, Scenario 1 and 2 simultaneously. Preliminary results from the Autoregressive Distributed Lag (ARDL) model applied indicated that despite the projected changes in the climate variables (temperature and rainfall), in scenario 1 (the projected changes (5% increase) in rainfall). The result showed that climate variables (rainfall and temperature) have negative impacts on palm oil yield. The production trend is expected to be positive while changes in rainfall (5% increase), changes in temperature (2% increase) and simultaneous changes in rainfall (+5%) and temperature (+2%) will cause the yield to decline by 0.24%, 0.58%, and 0.82% respectively. AI Publications 2017 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/61536/1/Economic%20climate%20model%20of%20the%20oil%20palm%20production%20in%20Malaysia.pdf Chizari, Ali and Mohamed, Zainalabidin and Shamsudin, Mad Nasir and Wong, Kelly Kai Seng (2017) Economic climate model of the oil palm production in Malaysia. International Journal of Horticulture, Agriculture and Food Science (IJHAF), 1 (3). 27 - 32. ISSN 2456-8635 http://aipublications.com/ijhaf/detail/economic-climate-model-of-the-oil-palm-production-in-malaysia-2/ 10.22161/ijhaf.1.3.6
spellingShingle Chizari, Ali
Mohamed, Zainalabidin
Shamsudin, Mad Nasir
Wong, Kelly Kai Seng
Economic climate model of the oil palm production in Malaysia
title Economic climate model of the oil palm production in Malaysia
title_full Economic climate model of the oil palm production in Malaysia
title_fullStr Economic climate model of the oil palm production in Malaysia
title_full_unstemmed Economic climate model of the oil palm production in Malaysia
title_short Economic climate model of the oil palm production in Malaysia
title_sort economic climate model of the oil palm production in malaysia
url http://psasir.upm.edu.my/id/eprint/61536/1/Economic%20climate%20model%20of%20the%20oil%20palm%20production%20in%20Malaysia.pdf
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AT mohamedzainalabidin economicclimatemodeloftheoilpalmproductioninmalaysia
AT shamsudinmadnasir economicclimatemodeloftheoilpalmproductioninmalaysia
AT wongkellykaiseng economicclimatemodeloftheoilpalmproductioninmalaysia