Understanding the certification behavior of Indonesian smallholder farmers in the Palm Oil Industry

Although certification schemes have shown to be an effective market-based instrument ensuring certain standards within an industry, the share of certified smallholders remains small. The current certification schemes within the Palm Oil industry seem not to be encouraging smallholders to adopt a certification scheme.

This research uses a Discrete Choice Experiment eliciting smallholder farmers' preferences towards certification schemes and thus their willingness to pay and acceptance of such schemes. Additionally, this research builds on the previous C06 research measuring the time and risk preferences of smallholder farmers and their stability over time employing Holt and Laury as well as Coller-Williams tasks.