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Land-use changes have transformed tropical landscapes throughout the past decades dramatically. We describe here an ecologicaleconomicland-use change model to provide an integrated, exploratory tool to analyze how tropical land use and land-use change affect ecological and socio-conomic functions. The guiding question of the model is what kind of landscape mosaic can improve the ensemble of ecosystem functioning, biodiversity and economic benefit based on the synergies and trade-offs that we have to account for. The economic submodel simulates smallholder land-use management decisions based on a profit maximization assumption and a Leontief production function. Each household determines factor inputs for all household fields and decides about land-use change based on available wealth. The ecological submodel includes a simple account of carbon sequestration in above- and belowground vegetation. Initialized with realistic or artificial land use maps, the ecological-economic model will advance our understanding of the mechanisms underlying the trade-offs and synergies of ecological and economic functions in tropical landscapes.

The rapid expansion of the oil palm area in many tropical countries has raised concerns about its negative impact on local communities, food security, and on the environment. While the expansion of oil palm in early stages was mainly driven by large private and public companies, it is expected that smallholders will outnumber large estates in the near future. For policy formulation it is hence important to better understand who these smallholders are and why they have started to cultivate oil palm. In this paper, we used a rich dataset collected in the province of Jambi, which is one of the most important production areas for oil palm, to analyse smallholders' decision making by combining qualitative, quantitative, and experimental methods. We identified agricultural expertise, lacking flexibility in labour requirements, availability of seedlings, and investment costs as the major constraints for farmers to cultivate oil palm. Important reasons for oil palm cultivation are the higher returns to labour and the shorter immature phase of oil palm. We also showed that oil palm farmers are neither risk-averse nor risk-loving, rather, they appear to be risk-neutral.