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Estimating the Break-Even Price for Forest Protection in Central Kalimantan

Author

Listed:
  • Yuki Yamamoto

    () (Graduate School of Economics, Kobe University)

  • Kenji Takeuchi

    () (Graduate School of Economics, Kobe University)

Abstract

This paper estimates the break-even price in Central Kalimantan province, Indonesia and evaluates the effectiveness of a REDD+ mechanism in this area. On the basis of data collected through a field survey, we found that the break-even price is $17.14 per ton of carbon or $4.68 per ton of carbon dioxide. The figure can be even lower when we take the peat thickness of the area into account. Our analysis shows that the current level of carbon price can provide adequate compensation for Indonesian farmers.

Suggested Citation

  • Yuki Yamamoto & Kenji Takeuchi, 2011. "Estimating the Break-Even Price for Forest Protection in Central Kalimantan," Discussion Papers 1111, Graduate School of Economics, Kobe University.
  • Handle: RePEc:koe:wpaper:1111
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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2011/1111.pdf
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    References listed on IDEAS

    as
    1. Osborne, Tracey & Kiker, Clyde, 2005. "Carbon offsets as an economic alternative to large-scale logging: a case study in Guyana," Ecological Economics, Elsevier, vol. 52(4), pages 481-496, March.
    2. Ken-Ichi Akao, 2011. "Optimum forest program when the carbon sequestration service of a forest has value," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 13(4), pages 323-343, December.
    3. Bellassen, Valentin & Gitz, Vincent, 2008. "Reducing Emissions from Deforestation and Degradation in Cameroon -- Assessing costs and benefits," Ecological Economics, Elsevier, vol. 68(1-2), pages 336-344, December.
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    Cited by:

    1. Cacho, Oscar J. & Milne, Sarah & Gonzalez, Ricardo & Tacconi, Luca, 2014. "Benefits and costs of deforestation by smallholders: Implications for forest conservation and climate policy," Ecological Economics, Elsevier, vol. 107(C), pages 321-332.
    2. Meley M. Araya & Ole Hofstad, 2016. "Monetary incentives to avoid deforestation under the Reducing emissions from deforestation and degradation (REDD)+ climate change mitigation scheme in Tanzania," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 21(3), pages 421-443, March.
    3. Yuki Yamamoto & Kenji Takeuchi & Gunnar Kohlin, 2013. "What Factors Promote Peatland Fire Prevention? Evidence from Central Kalimantan, Indonesia," Discussion Papers 1312, Graduate School of Economics, Kobe University.
    4. Dang Phan, Thu-Ha & Brouwer, Roy & Davidson, Marc, 2014. "The economic costs of avoided deforestation in the developing world: A meta-analysis," Journal of Forest Economics, Elsevier, vol. 20(1), pages 1-16.
    5. Heli Lu & Guifang Liu, 2015. "Opportunity Costs of Carbon Emissions Stemming from Changes in Land Use," Sustainability, MDPI, Open Access Journal, vol. 7(4), pages 1-18, March.

    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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