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Green Fiscal Policy and Climate Mitigation in Indonesia

Author

Listed:
  • Resosudarmo, Budy P.
  • Abdurohman

Abstract

In common with other archipelagic countries, Indonesia is vulnerable to such impacts of climate change as prolonged droughts, increased frequency in extreme weather events, and heavy rainfall resulting in floods. These threats, coupled with the fact that Indonesia has been declared one of the three biggest greenhouse gases emitters, has induced the Indonesian government to place a high priority on climate change issues. In particular, the government considers its fiscal policy to be a key instrument in both mitigating against and adapting to climate change. This paper reviews Indonesia’s implementation of green fiscal policies and discusses recent Indonesian fiscal policy responses to its commitment to reduce its emissions by 2020. In general, one can conclude that although progress has been made in the area of green fiscal policy in Indonesia, a more vigorous approach is needed to protect Indonesia’s environment and to cope with the new challenges of controlling CO2 emission in the era of climate change.

Suggested Citation

  • Resosudarmo, Budy P. & Abdurohman, 2011. "Green Fiscal Policy and Climate Mitigation in Indonesia," Working Papers 249532, Australian National University, Centre for Climate Economics & Policy.
    • Handle: RePEc:ags:ancewp:249532
    DOI: 10.22004/ag.econ.249532
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    References listed on IDEAS

    as
    1. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801.
    2. Hal Hill, 2000. "Indonesia: The Strange and Sudden Death of a Tiger Economy," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 117-139.
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    6. Budy Resosudarmo & Ari Kuncoro, 2006. "The Political Economy of Indonesian Economic Reforms: 1983-2000," Oxford Development Studies, Taylor & Francis Journals, vol. 34(3), pages 341-355.
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