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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. 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.
  2. 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.
  3. Ken-Ichi Akao, 2011. "Optimum forest program when the carbon sequestration service of a forest has value," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, vol. 13(4), pages 323-343, December.
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Cited by:
  1. Dang Phan, Thu-Ha & Brouwer, Roy & Davidson, Marc, 2014. "The economic costs of avoided deforestation in the developing world: A meta-analysis," Journal of Forest Economics, Elsevier, vol. 20(1), pages 1-16.
  2. Yuki Yamamoto & Kenji Takeuchi & Gunnar Kohlin, 2013. "What Factors Promote Peatland Fire Prevention? Evidence from Central Kalimantan, Indonesia," Discussion Papers 1312, Graduate School of Economics, Kobe University.

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