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Targeting REDD+: An Empirical Analysis of Carbon Sequestration in Indonesia

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  • Skidmore, Samuel
  • Santos, Paulo
  • Leimona, Beria

Abstract

The implementation of REDD+ requires knowledge of the willingness to accept land use change contracts and its application over large areas. This paper uses primary data from Indonesia to contrast two approaches to the elicitation of the supply curve for carbon: an auction and an analysis of opportunity costs. The analysis shows that there are important differences between the two approaches for a wide range of prices. An analysis of bidding behavior shows that location and individual preferences (time and risk preferences), but not opportunity costs, play a significant role in this decision. The implications for targeting are discussed.

Suggested Citation

  • Skidmore, Samuel & Santos, Paulo & Leimona, Beria, 2014. "Targeting REDD+: An Empirical Analysis of Carbon Sequestration in Indonesia," World Development, Elsevier, vol. 64(C), pages 781-790.
    • Handle: RePEc:eee:wdevel:v:64:y:2014:i:c:p:781-790
    DOI: 10.1016/j.worlddev.2014.07.013
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    2. Baker, K. & Baylis, K. & Bull, G.Q. & Barichello, R., 2019. "Are non-market values important to smallholders' afforestation decisions? A psychometric segmentation and its implications for afforestation programs," Forest Policy and Economics, Elsevier, vol. 100(C), pages 1-13.
    3. Abdul Aziz, Ammar & Dargusch, Paul & Phinn, Stuart & Ward, Adrian, 2015. "Using REDD+ to balance timber production with conservation objectives in a mangrove forest in Malaysia," Ecological Economics, Elsevier, vol. 120(C), pages 108-116.
    4. Tang, Kai & Hailu, Atakelty & Kragt, Marit E. & Ma, Chunbo, 2018. "The response of broadacre mixed crop-livestock farmers to agricultural greenhouse gas abatement incentives," Agricultural Systems, Elsevier, vol. 160(C), pages 11-20.
    5. Nielsen, Martin Reinhardt & Theilade, Ida & Meilby, Henrik & Nui, Nguyen Hai & Lam, Nguyen Thanh, 2018. "Can PES and REDD+ match Willingness To Accept payments in contracts for reforestation and avoided forest degradation? The case of farmers in upland Bac Kan, Vietnam," Land Use Policy, Elsevier, vol. 79(C), pages 822-833.

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