When households stop logging — Evidence for household adaptation from East Kalimantan

Rising fuel prices are thought to drive households in developing countries to increase pressure on natural resources, primarily through firewood collection and logging. We revisit this assumption and conducted household surveys to elicit responses to energy price changes in East Kalimantan, Indonesia. Survey data suggests that household logging, rattan harvest and fishing are likely to decrease in response to increasing fuel prices. These empirical findings stand in contrast to other studies. Our findings show that if households perceive a specific livelihood to become unviable, the complete set of livelihoods is likely to be replaced by wage labour.

► Many scholars assume rising deforestation if forest dwellers adapt to higher costs.
► We present household data that suggests some adaptations decrease logging.
► Our analysis emphasises the relevance of reversed livelihood diversification.
► Poverty threshold triggers trade of diversified livelihoods for paid work.
► Emerging system outcomes include reduced pressure on forest resources.