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Reducing Indonesia’s Deforestation-based Greenhouse Gas Emissions

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  • Warr, Peter G.
  • Yusuf, Arief Anshory

Abstract

Indonesia has set the target that by the year 2020 its emissions of greenhouse gases will be reduced by 26 per cent relative to business-as-usual conditions. This paper analyzes the effectiveness of a subsidy to the use of land in forestry as a means of achieving this goal. The analysis uses a general equilibrium model of the Indonesian economy characterized by explicit treatment of land use, disaggregated by industry and by region. The results of the analysis indicate that the subsidy cost of permanently reducing carbon emissions by 26% is a little over US$1 per metric tonne of carbon emissions abated. This cost needs to be compared with that of alternative instruments and with the price of carbon that might be agreed under the proposed REDD scheme (Reducing Emissions through Deforestation and Land Degradation), to be administered through the World Bank and the UN.

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Bibliographic Info

Paper provided by Australian Agricultural and Resource Economics Society in its series 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia with number 100730.

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Date of creation: 2011
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Handle: RePEc:ags:aare11:100730

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Keywords: Environmental Economics and Policy; Land Economics/Use;

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Cited by:
  1. Arief Anshory Yusuf, 2013. "The Direct and Indirect Effect of Cash Transfers: The Case of Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201305, Department of Economics, Padjadjaran University, revised Jan 2013.
  2. Arief Anshory Yusuf & Ahmad Komarulzaman & Muhamad Purnagunawan & Budy P. Resosudarmo, 2013. "Growth, Poverty and Labor Market Rigidity in Indonesia: A General Equilibrium Investigation," Working Papers in Economics and Development Studies (WoPEDS) 201304, Department of Economics, Padjadjaran University, revised Jan 2013.
  3. Arief Anshory Yusuf, 2014. "Poverty, food prices and supply shocks of agricultural products in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201408, Department of Economics, Padjadjaran University, revised Jun 2014.
  4. Patrick Doup�, 2014. "Reduced Deforestation and Economic Growth," CCEP Working Papers 1402, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
  5. Lykke Andersen & Jonah Busch & Elizabeth Curran & Juan Carlos Ledezma & Joaquín Mayorga & Pablo Ruiz, 2012. "Impactos socio-económicos y ambientales de compensaciones por la reducción de emisiones de deforestación en Bolivia: Resultados del modelo OSIRIS-Bolivia," Development Research Working Paper Series 05/2012, Institute for Advanced Development Studies.
  6. Disdier, Anne-Célia & Marette, Stéphan & Millet, Guy, 2013. "Are consumers concerned about palm oil? Evidence from a lab experiment," Food Policy, Elsevier, vol. 43(C), pages 180-189.
  7. Arief Anshory Yusuf, 2014. "International Commodity Prices and Inequality in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201409, Department of Economics, Padjadjaran University, revised Jun 2014.
  8. Lykke Andersen & Jonah Busch & Elizabeth Curran & Juan Carlos Ledezma & Joaquín Mayorga & Mélissa Bellier, 2012. "Environmental and socio-economic consequences of forest carbon payments in Bolivia: Results of the OSIRIS-Bolivia model," Development Research Working Paper Series 02/2012, Institute for Advanced Development Studies.
  9. Peter Warr & Arief Anshory Yusuf, 2013. "World Food Prices and Poverty in Indonesia," Departmental Working Papers 2013-07, The Australian National University, Arndt-Corden Department of Economics.

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