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Conserving Tropical Rain Forests In Indonesia: A Quantitative Assessment Of Alternative Policies

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  • R. Thiele

Abstract

The present paper provides a numerical general equilibrium assessment of policies to reduce tropical deforestation in Indonesia. Two groups of policy measures are examined: (i) forestry policies as a means to internalise the local externalities of deforestation; (ii) international measures to address the global dimension of the problem. Given the relatively short rotation periods and the high harvesting intensity in the forestry sector, it is concluded that among the forestry policies an increase in the minimum harvest age is the best solution from an ecological point of view, because it tackles both problems simultaneously. At the global level, import restrictions, for Indonesian wood products are ecologically ineffective and place considerable costs on the Indonesian economy, whereas compensation payments can compensate for the losses of forest conservation, if the money is invested in the creation of new employment opportunities.

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  • R. Thiele, 1995. "Conserving Tropical Rain Forests In Indonesia: A Quantitative Assessment Of Alternative Policies," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(2), pages 187-200, May.
    • Handle: RePEc:bla:jageco:v:46:y:1995:i:2:p:187-200
    DOI: 10.1111/j.1477-9552.1995.tb00765.x
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    1. Benjamin, Nancy C. & Devarajan, Shantayanan & Weiner, Robert J., 1989. "The Dutch disease in a developing country : Oil reserves in Cameroon," Journal of Development Economics, Elsevier, vol. 30(1), pages 71-92, January.
    2. Thiele, Rainer & Wiebelt, Manfred, 1993. "Modeling deforestation in a computable general equilibrium model," Kiel Working Papers 555, Kiel Institute for the World Economy (IfW Kiel).
    3. Simeon K. Ehui & Thomas W. Hertel, 1989. "Deforestation and Agricultural Productivity in the Côte d'Ivoire," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 703-711.
    4. Rainer Thiele & Manfred Wiebelt, 1993. "National and international policies for tropical rain forest conservation—A quantitative analysis for Cameroon," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 3(6), pages 501-531, December.
    5. Thiele, Rainer, 1994. "Conserving tropical rain forests in Indonesia: a CGE analysis of alternative policies," Kiel Working Papers 621, Kiel Institute for the World Economy (IfW Kiel).
    6. Todd Sandler, 1993. "Tropical Deforestation: Markets and Market Failures," Land Economics, University of Wisconsin Press, vol. 69(3), pages 225-233.
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    Cited by:

    1. Arunanondchai, Jutamas May, 2003. "Applied general equilibrium analysis of trade liberalisation on land-based sectors in Malaysia and Indonesia," Journal of Policy Modeling, Elsevier, vol. 25(9), pages 947-961, December.
    2. Manfred Wiebelt, 1995. "Stopping deforestation in the Amazon: Trade-off between ecological and economic targets?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 131(3), pages 542-568, September.
    3. Withey, P. & Lantz, V.A. & Ochuodho, T. & Patriquin, M.N. & Wilson, J. & Kennedy, M., 2018. "Economic impacts of conservation area strategies in Alberta, Canada: A CGE model analysis," Journal of Forest Economics, Elsevier, vol. 33(C), pages 33-40.
    4. Thiam, Djiby-Racine, 2010. "Renewable decentralized in developing countries: Appraisal from microgrids project in Senegal," Renewable Energy, Elsevier, vol. 35(8), pages 1615-1623.
    5. Thiele, Rainer & Wiebelt, Manfred, 1996. "Tropenwaldmanagement: Ein Balanceakt zwischen Schutz und Raubbau," Kiel Discussion Papers 282, Kiel Institute for the World Economy (IfW Kiel).
    6. Angelsen, Arild & Kaimowitz, David, 1999. "Rethinking the Causes of Deforestation: Lessons from Economic Models," The World Bank Research Observer, World Bank, vol. 14(1), pages 73-98, February.

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