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The role of fiscal instruments in encouraging the private sector and smallholders to reduce emissions from deforestation and forest degradation: Evidence from Indonesia

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  • Cadman, Tim
  • Sarker, Tapan
  • Muttaqin, Zahrul
  • Nurfatriani, Fitri
  • Salminah, Mimi
  • Maraseni, Tek

Abstract

While developing countries around the world are preparing to implement REDD+, there is a debate on the possible role of fiscal instruments in encouraging the private sector and smallholder stakeholders in reducing emissions. Drawing on a case of Indonesia, an early leader on REDD+, this paper investigates the role of fiscal instruments in encouraging the private sector to reduce forest-based emissions and the implications for improving the forest sector governance. In particular the study highlights the perspectives of a range of forest sector stakeholders on the role of fiscal instruments that contribute either positively or negatively to reducing emissions from deforestation and forest degradation in Indonesia. The study comprised a review of the existing instruments in Indonesia, as well as surveys and interviews. An online survey and structured face-to-face interviews were conducted with a range of forest sector stakeholders, including government, civil society, academia, and palm oil concession holders. Findings indicate that there is a range of formal and informal fiscal instruments at the various jurisdictional levels, and a variety of incentives and disincentives. More emphasis on cross-sectoral co-ordination, alternatives to commodities such as palm oil, and continued land reform, is required.

Suggested Citation

  • Cadman, Tim & Sarker, Tapan & Muttaqin, Zahrul & Nurfatriani, Fitri & Salminah, Mimi & Maraseni, Tek, 2019. "The role of fiscal instruments in encouraging the private sector and smallholders to reduce emissions from deforestation and forest degradation: Evidence from Indonesia," Forest Policy and Economics, Elsevier, vol. 108(C), pages 1-1.
    • Handle: RePEc:eee:forpol:v:108:y:2019:i:c:6
    DOI: 10.1016/j.forpol.2019.04.017
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    Cited by:

    1. Hunggul Yudono Setio Hadi Nugroho & Fitri Nurfatriani & Yonky Indrajaya & Tri Wira Yuwati & Sulistya Ekawati & Mimi Salminah & Hendra Gunawan & Subarudi Subarudi & Markus Kudeng Sallata & Merryana Kid, 2022. "Mainstreaming Ecosystem Services from Indonesia’s Remaining Forests," Sustainability, MDPI, vol. 14(19), pages 1-39, September.
    2. Tacconi, Luca & Muttaqin, Muhammad Zahrul, 2019. "Policy forum: Institutional architecture and activities to reduce emissions from forests in Indonesia," Forest Policy and Economics, Elsevier, vol. 108(C), pages 1-1.
    3. Tacconi, Luca & Muttaqin, Muhammad Zahrul, 2019. "Reducing emissions from land use change in Indonesia: An overview," Forest Policy and Economics, Elsevier, vol. 108(C), pages 1-1.
    4. Ileana Pătru-Stupariu & Constantina Alina Hossu & Simona Raluca Grădinaru & Andreea Nita & Mihai-Sorin Stupariu & Alina Huzui-Stoiculescu & Athanasios-Alexandru Gavrilidis, 2020. "A Review of Changes in Mountain Land Use and Ecosystem Services: From Theory to Practice," Land, MDPI, vol. 9(9), pages 1-21, September.

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