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Estimating the Break-Even Price for Forest Protection in Central Kalimantan

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  • Yuki Yamamoto

    () (Graduate School of Economics, Kobe University)

  • Kenji Takeuchi

    () (Graduate School of Economics, Kobe University)

Abstract

This paper estimates the break-even price in Central Kalimantan province, Indonesia and evaluates the effectiveness of a REDD+ mechanism in this area. On the basis of data collected through a field survey, we found that the break-even price is $17.14 per ton of carbon or $4.68 per ton of carbon dioxide. The figure can be even lower when we take the peat thickness of the area into account. Our analysis shows that the current level of carbon price can provide adequate compensation for Indonesian farmers.

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File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2011/1111.pdf
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Bibliographic Info

Paper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 1111.

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Length: 22pages
Date of creation: Aug 2011
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Handle: RePEc:koe:wpaper:1111

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Web page: http://www.econ.kobe-u.ac.jp
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  1. Osborne, Tracey & Kiker, Clyde, 2005. "Carbon offsets as an economic alternative to large-scale logging: a case study in Guyana," Ecological Economics, Elsevier, vol. 52(4), pages 481-496, March.
  2. Bellassen, Valentin & Gitz, Vincent, 2008. "Reducing Emissions from Deforestation and Degradation in Cameroon -- Assessing costs and benefits," Ecological Economics, Elsevier, vol. 68(1-2), pages 336-344, December.
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