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Green Fiscal Policy and Climate Change Mitigation in Indonesia

Author

Listed:
  • Budy P. Resosudarmo

    (Indonesia Project, The Arndt-Corden Department of Economics, Crawford School of Economics & Government, Australian National University, Canberra, ACT, Australia)

  • Abdurohman

    (The Arndt-Corden Department of Economics, Crawford School of Economics & Government, Australian National University, Canberra, ACT, Australia)

Abstract

In common with other archipelagic countries, Indonesia is vulnerable to such impacts of climate change as prolonged droughts, increased frequency in extreme weather events, and heavy rainfall resulting in floods. These threats, coupled with the fact that Indonesia has been declared one of the three biggest greenhouse gases emitters, has induced the Indonesian government to place a high priority on climate change issues. In particular, the government considers its fiscal policy to be a key instrument in both mitigating against and adapting to climate change. This paper reviews Indonesia's implementation of green fiscal policies and discusses recent Indonesian fiscal policy responses to its commitment to reduce its emissions by 2020. In general, one can conclude that although progress has been made in the area of green fiscal policy in Indonesia, a more vigorous approach is needed to protect Indonesia's environment and to cope with the new challenges of controlling CO2 emission in the era of climate change.

Suggested Citation

  • Budy P. Resosudarmo & Abdurohman, 2011. "Green Fiscal Policy and Climate Change Mitigation in Indonesia," CCEP Working Papers 1109, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:ccepwp:1109
    as

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    File URL: http://ccep.anu.edu.au/data/2011/pdf/wpapers/CCEP1109Resosudarmo.pdf
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    References listed on IDEAS

    as
    1. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801.
    2. Hill,Hal, 2000. "The Indonesian Economy," Cambridge Books, Cambridge University Press, number 9780521663670.
    3. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, January.
    4. Budy Resosudarmo & Ari Kuncoro, 2006. "The Political Economy of Indonesian Economic Reforms: 1983-2000," Oxford Development Studies, Taylor & Francis Journals, vol. 34(3), pages 341-355.
    5. Budy Resosudarmo & Arief Yusuf, 2009. "Survey of recent developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 45(3), pages 287-315.
    6. Arsenio M. Balisacan & Hal Hill (ed.), 2007. "The Dynamics of Regional Development," Books, Edward Elgar Publishing, number 4178.
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    More about this item

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

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