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The Impact of Coal Mining on the Economy and Environment of South Kalimantan Province, Indonesia

Author

Listed:
  • Luthfi Fatah

    (Faculty of Agriculture, Lambung Mangkurat University)

Abstract

This study investigates the impact of coal mining on the economy and environment of South Kalimantan Province, one of the most important coal producing regions in Indonesia. It uses a Social Accounting matrix to assess how the industry affects the province's economy and the livelihoods of its people. It also investigates what policy options will best reduce its negative environmental impacts at least cost to the province's economy. The study, by Luthfi Fatah of Lambung Mangkurat University, finds that mining is one of the most significant parts of the province's economy and that it is steadily growing in importance. However, it also shows that the industry disproportionately benefits the better-off sectors of society and is having an unacceptable impact on the environment. Fatah recommends that policy makers slow the growth in coal mining through regulation of small-scale mining. This should help the environment. He also suggests that the government boost investment in agricultural -based activities to improve the employment prospects of the poorer sectors of society.

Suggested Citation

  • Luthfi Fatah, 2008. "The Impact of Coal Mining on the Economy and Environment of South Kalimantan Province, Indonesia," EEPSEA Research Report rr2008061, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jun 2008.
    • Handle: RePEc:eep:report:rr2008061
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    File URL: http://www.eepsea.org/pub/rr/12130843601Luthfi_RR2.pdf
    File Function: First version, 2008
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    Citations

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    Cited by:

    1. Calvo, Jorge Andrés Perdomo & Pérez, Ana María Jaramillo, 2016. "Optimal extraction policy when the environmental and social costs of the opencast coal mining activity are internalized: Mining District of the Department of El Cesar (Colombia) case study," Energy Economics, Elsevier, vol. 59(C), pages 159-166.
    2. Haftendorn, C. & Kemfert, C. & Holz, F., 2012. "What about coal? Interactions between climate policies and the global steam coal market until 2030," Energy Policy, Elsevier, vol. 48(C), pages 274-283.
    3. Gayatree Sahoo & Asis Kumar Senapati, 2021. "Are the households in coal mining regions more vulnerable? A study in Talcher Coalfield of India," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(3), pages 455-475, October.
    4. Clemens Haftendorn & Franziska Holz & Claudia Kemfert & Christian von Hirschhausen, 2013. "Global steam coal markets until 2030: perspectives on production, trade and consumption under increasing carbon constraints," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 4, pages 103-122, Edward Elgar Publishing.
    5. Rian Hilmawan & Siti Amalia, 2020. "Coal and Mineral and its Impact on Human Development Index: An Empirical Study in South and East Kalimantan Region, Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 488-494.

    More about this item

    Keywords

    Coal; Kalimantan;

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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