What is the impact of reduced-impact logging (RIL) policy on the Berau Economy?

Kadim Martana (kadimmartana@yahoo.com), James Lennox, David Evison and Bruce Manley

No 160268, 2013 Conference, August 28-30, 2013, Christchurch, New Zealand from New Zealand Agricultural and Resource Economics Society

Abstract: A dynamic recursive CGE model of the Berau District (East Kalimantan Province, Indonesia) was constructed, to analysis the impact of REDD policies. The model was used to simulate a policy to implement reduced-impact logging (RIL) by inducing a seven percent raise in logging cost. Results suggest that impact of the policy to the Berau economy is small. Agricultural-based households’ welfare decreased (with forestry households the most impacted) while non-agricultural households were better off. As logging output declines, other agricultural outputs increase, since factors of production that are not used in the logging sector, are re-employed in other agricultural sectors, especially the oil palm sector.

Keywords: Agribusiness; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; Crop Production/Industries; Demand and Price Analysis; Farm Management; Land Economics/Use; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 16
Date: 2013-08
New Economics Papers: this item is included in nep-agr, nep-cmp and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nzar13:160268

DOI: 10.22004/ag.econ.160268

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