Palm oil, a liquid produced by palm trees and used for cooking and other purposes, has become very popular in recent years. As a result, the palm oil industry has had a dramatic impact on the economies and landscapes of the countries in which it operates. When asked to make a recommendation about whether expanding palm oil production even more would be good or bad for the environment and the economy, many experts have stated that palm oil production has several positive effects and should be expanded.

First, the experts point out that palm tree farming helps preserve the world's forests. Palm trees have a very high oil yield—far higher than that of other crops. For this reason, farming palm trees requires less land than farming other crops to produce the same economic value. Since palm tree farms require relatively little land (compared with many other crops), palm tree plantations require the clearing of smaller areas of forest than many other crops would. In other words, palm tree farms cause less deforestation and therefore have a lesser negative impact on the environment than other types of crops.

Second, palm oil is sometimes used to produce biodiesel, a fuel for motor vehicles. Using biodiesel in vehicle engines creates fewer carbon emissions than using traditional fossil fuels does. Carbon emissions are known to contribute to climate change. Biodiesel from palm oil, when used as an alternative to fossil fuels, can help reduce this effect.

Third, palm oil production helps reduce poverty among small-scale farmers. About 50 percent to 70 percent of land used for farming in palm-oil-producing countries is actually cleared by small-scale, low-income family farmers. Growing palm trees is usually more profitable for such farmers than growing other crops, and it has in many cases helped improve the farmers' standard of living.