IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v64y2014icp781-790.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X14002150
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2014.07.013?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David Coady & Margaret Grosh & John Hoddinott, 2004. "Targeting of Transfers in Developing Countries : Review of Lessons and Experience," World Bank Publications - Books, The World Bank Group, number 14902.
    2. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
    3. Stoneham, Gary & Chaudhri, Vivek & Ha, Arthur & Strappazzon, Loris, 2003. "Auctions for conservation contracts: an empirical examination of Victoria’s BushTender trial," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 1-24.
    4. John M. Antle & Roberto O. Valdivia, 2006. "Modelling the supply of ecosystem services from agriculture: a minimum‐data approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), pages 1-15, March.
    5. Gary Stoneham & Vivek Chaudhri & Arthur Ha & Loris Strappazzon, 2003. "Auctions for conservation contracts: an empirical examination of Victoria's BushTender trial," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 477-500, December.
    6. Antle, John M. & Diagana, Bocar & Stoorvogel, Jetse J. & Valdivia, Roberto O., 2010. "Minimum-data analysis of ecosystem service supply in semi-subsistence agricultural systems," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 1-17.
    7. Glenn W. Harrison & Morten I. Lau & E. Elisabet Rutström, 2007. "Estimating Risk Attitudes in Denmark: A Field Experiment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(2), pages 341-368, June.
    8. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
    9. Ajayi, Oluyede C. & Jack, B. Kelsey & Leimona, Beria, 2012. "Auction Design for the Private Provision of Public Goods in Developing Countries: Lessons from Payments for Environmental Services in Malawi and Indonesia," World Development, Elsevier, vol. 40(6), pages 1213-1223.
    10. B. Kelsey Jack, 2013. "Private Information and the Allocation of Land Use Subsidies in Malawi," American Economic Journal: Applied Economics, American Economic Association, vol. 5(3), pages 113-135, July.
    11. B Kelsey Jack, 2009. "Auctioning Conservation Contracts in Indonesia - Participant Learning in Multiple Trial Rounds," CID Working Papers 35, Center for International Development at Harvard University.
    12. Bulte, Erwin H. & Lipper, Leslie & Stringer, Randy & Zilberman, David, 2008. "Payments for ecosystem services and poverty reduction: concepts, issues, and empirical perspectives," Environment and Development Economics, Cambridge University Press, vol. 13(3), pages 245-254, June.
    13. Wünscher, Tobias & Engel, Stefanie & Wunder, Sven, 2008. "Spatial targeting of payments for environmental services: A tool for boosting conservation benefits," Ecological Economics, Elsevier, vol. 65(4), pages 822-833, May.
    14. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
    15. Cacho, Oscar J. & Marshall, Graham R. & Milne, Mary, 2005. "Transaction and abatement costs of carbon-sink projects in developing countries," Environment and Development Economics, Cambridge University Press, vol. 10(5), pages 597-614, October.
    16. Ferraro, Paul J., 2008. "Asymmetric information and contract design for payments for environmental services," Ecological Economics, Elsevier, vol. 65(4), pages 810-821, May.
    17. Claassen, Roger & Cattaneo, Andrea & Johansson, Robert, 2008. "Cost-effective design of agri-environmental payment programs: U.S. experience in theory and practice," Ecological Economics, Elsevier, vol. 65(4), pages 737-752, May.
    18. Wunder, Sven & Engel, Stefanie & Pagiola, Stefano, 2008. "Taking stock: A comparative analysis of payments for environmental services programs in developed and developing countries," Ecological Economics, Elsevier, vol. 65(4), pages 834-852, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sawosri, Arieska Wening & Mußhoff, Oliver, 2020. "Risk and time preferences of farmers in India and Indonesia," EFForTS Discussion Paper Series 32, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    2. 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.
    3. 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.
    4. 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.
    5. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Skidmore, Samuel & Santos, Paulo & Leimona, Beria, 2012. "Seeing REDD: A Microeconomic Analysis of Carbon Sequestration in Indonesia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126688, International Association of Agricultural Economists.
    2. Cho, Seong-Hoon & Soh, Moonwon & English, Burton C. & Yu, T. Edward & Boyer, Christopher N., 2019. "Targeting payments for forest carbon sequestration given ecological and economic objectives," Forest Policy and Economics, Elsevier, vol. 100(C), pages 214-226.
    3. Whitten, Stuart M., 2017. "Designing and implementing conservation tender metrics: Twelve core considerations," Land Use Policy, Elsevier, vol. 63(C), pages 561-571.
    4. Balmford, Ben & Collins, Joseph & Day, Brett & Lindsay, Luke & Peacock, James, 2023. "Pricing rules for PES auctions: Evidence from a natural experiment," Journal of Environmental Economics and Management, Elsevier, vol. 122(C).
    5. Rolfe, John & Whitten, Stuart & Windle, Jill, 2017. "The Australian experience in using tenders for conservation," Land Use Policy, Elsevier, vol. 63(C), pages 611-620.
    6. Reutemann, Tim & Engel, Stefanie & Pareja, Eliana, 2016. "How (not) to pay — Field experimental evidence on the design of REDD+ payments," Ecological Economics, Elsevier, vol. 129(C), pages 220-229.
    7. Harriet Toto Olita & Md. Sayed Iftekhar & Steven G. M. Schilizzi, 2023. "Optimizing contract allocation for risky conservation tenders," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(1), pages 63-85, January.
    8. Ajayi, Oluyede C. & Jack, B. Kelsey & Leimona, Beria, 2012. "Auction Design for the Private Provision of Public Goods in Developing Countries: Lessons from Payments for Environmental Services in Malawi and Indonesia," World Development, Elsevier, vol. 40(6), pages 1213-1223.
    9. Kim-Bakkegaard, Riyong & Jacobsen, Jette Bredahl & Wunder, Sven & Thorsen, Bo Jellesmark, 2017. "Comparing tools to predict REDD+ conservation costs to Amazon smallholders," Resource and Energy Economics, Elsevier, vol. 49(C), pages 48-61.
    10. Marc N. Conte & Robert M. Griffin, 2017. "Quality Information and Procurement Auction Outcomes: Evidence from a Payment for Ecosystem Services Laboratory Experiment," American Journal of Agricultural Economics, John Wiley & Sons, vol. 99(3), pages 571-591, April.
    11. Chan, Kai M.A. & Anderson, Emily & Chapman, Mollie & Jespersen, Kristjan & Olmsted, Paige, 2017. "Payments for Ecosystem Services: Rife With Problems and Potential—For Transformation Towards Sustainability," Ecological Economics, Elsevier, vol. 140(C), pages 110-122.
    12. John Rolfe & Romy Greiner & Jill Windle & Atakelty Hailu, 2011. "Testing for allocation efficiencies in water quality tenders across catchments, industries and pollutants: a north Queensland case study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(4), pages 518-536, October.
    13. Alix-Garcia, Jennifer & Wolff, Hendrik, 2014. "Payment for Ecosystem Services from Forests," IZA Discussion Papers 8179, Institute of Labor Economics (IZA).
    14. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 541-571.
    15. Alain‐Désiré Nimubona & Jean‐Christophe Pereau, 2022. "Negotiating over payments for wetland ecosystem services," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(3), pages 1507-1538, August.
    16. Martin Persson, U. & Alpízar, Francisco, 2013. "Conditional Cash Transfers and Payments for Environmental Services—A Conceptual Framework for Explaining and Judging Differences in Outcomes," World Development, Elsevier, vol. 43(C), pages 124-137.
    17. Börner, Jan & Wunder, Sven & Wertz-Kanounnikoff, Sheila & Tito, Marcos Rügnitz & Pereira, Ligia & Nascimento, Nathalia, 2010. "Direct conservation payments in the Brazilian Amazon: Scope and equity implications," Ecological Economics, Elsevier, vol. 69(6), pages 1272-1282, April.
    18. Dörschner, T. & Musshoff, O., 2015. "How do incentive-based environmental policies affect environment protection initiatives of farmers? An experimental economic analysis using the example of species richness," Ecological Economics, Elsevier, vol. 114(C), pages 90-103.
    19. Sattler, Claudia & Trampnau, Susanne & Schomers, Sarah & Meyer, Claas & Matzdorf, Bettina, 2013. "Multi-classification of payments for ecosystem services: How do classification characteristics relate to overall PES success?," Ecosystem Services, Elsevier, vol. 6(C), pages 31-45.
    20. Banerjee, Simanti & Conte, Marc N., 2017. "Balancing Complexity and Rent-Seeking in Multi-Attribute Conservation Procurement Auctions: Evidence from a Laboratory Experiment," 2018 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2018, Philadelphia, Pennsylvania 266293, Agricultural and Applied Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:64:y:2014:i:c:p:781-790. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.