Green Fiscal Policy and Climate Change Mitigation in Indonesia

Budy Resosudarmo and Abdurohman Abdurohman

CCEP Working Papers from Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University

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.

JEL-codes: H23 H30 H61 (search for similar items in EconPapers)
Date: 2011-08
New Economics Papers: this item is included in nep-ene, nep-env and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:een:ccepwp:1109

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