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Is the Log Export Ban an Efficient Instrument for Economic Development and Environmental Protection? The Case of Indonesia

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  • Budy P. Resosudarmo

    (Economics Division Research School of Pacific and Asian Studies The Australian National University Canberra, ACT 0200 Australia)

  • Arief Anshory Yusuf

    (Economics Division Research School of Pacific and Asian Studies The Australian National University Canberra, ACT 0200 Australia and Faculty of Economics Padjadjaran University)

Abstract

The effectiveness of a log export ban policy in achieving the twin goals of conservation and economic development has been vigorously debated by many researchers and policymakers for the last two decades or so. Despite the abundance of work focusing on this issue that demonstrates the perversity of such policies, many countries around the world still implement them. This paper will first review the economic and political arguments in regard to the pros and cons of this policy. Second, it will review the Indonesian experience in implementing a log export ban policy in the 1980s and 2000s. Third, using a computable general equilibrium model, this paper will predict the anticipated impact of implementing a log export ban policy on the national economy and on household incomes for various socioeconomic groups. (c) 2006 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

Suggested Citation

  • Budy P. Resosudarmo & Arief Anshory Yusuf, 2006. "Is the Log Export Ban an Efficient Instrument for Economic Development and Environmental Protection? The Case of Indonesia," Asian Economic Papers, MIT Press, vol. 5(2), pages 75-104, Spring/Su.
    • Handle: RePEc:tpr:asiaec:v:5:y:2006:i:2:p:75-104
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    Cited by:

    1. Taingaun Sourn & Sophak Pok & Phanith Chou & Nareth Nut & Dyna Theng & Phanna Rath & Manuel R. Reyes & P.V. Vara Prasad, 2021. "Evaluation of Land Use and Land Cover Change and Its Drivers in Battambang Province, Cambodia from 1998 to 2018," Sustainability, MDPI, vol. 13(20), pages 1-22, October.
    2. Jacob R. Fooks & Steven J. Dundas & Titus O. Awokuse, 2013. "Are There Efficiency Gains from the Removal of Natural Resource Export Restrictions? Evidence from British Columbia," The World Economy, Wiley Blackwell, vol. 36(8), pages 1098-1114, August.
    3. Amoah, M. & Becker, G. & Nutto, L., 2009. "Effects of log export ban policy and dynamics of global tropical wood markets on the growth of timber industry in Ghana," Journal of Forest Economics, Elsevier, vol. 15(3), pages 167-185, August.
    4. Hajjar, Reem & Newton, Peter & Ihalainen, Markus & Agrawal, Arun & Alix-Garcia, Jennifer & Castle, Sarah E. & Erbaugh, James T. & Gabay, Monica & Hughes, Karl & Mawutor, Samuel & Pacheco, Pablo & Scho, 2021. "Levers for alleviating poverty in forests," Forest Policy and Economics, Elsevier, vol. 132(C).
    5. Terheggen, Anne, 2011. "The tropical timber industry in Gabon: a forward linkages approach to industrialisation," MPRA Paper 37976, University Library of Munich, Germany.
    6. Zhai, Jun & Kuusela, Olli-Pekka, 2022. "Incidence of domestic subsidies vs. export taxes: An equilibrium displacement model of log and lumber markets in Oregon," Forest Policy and Economics, Elsevier, vol. 135(C).
    7. Sun, Changyou, 2017. "Competition of wood products with different fiber transformation and import sources," Forest Policy and Economics, Elsevier, vol. 74(C), pages 30-39.
    8. Sun, Changyou, 2014. "Recent growth in China's roundwood import and its global implications," Forest Policy and Economics, Elsevier, vol. 39(C), pages 43-53.
    9. Myers, Rodd, 2015. "What the Indonesian rattan export ban means for domestic and international markets, forests, and the livelihoods of rattan collectors," Forest Policy and Economics, Elsevier, vol. 50(C), pages 210-219.

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