Preliminary Analysis of REDD on Indonesian's Economy
Budy Resosudarmo (),
Arief Yusuf () and
Ditya A. Nurdianto ()
Additional contact information
Ditya A. Nurdianto: Division of Economics, RSPAS, The AUstralian National University
No 201204, Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University
Approximately 10 per cent of the world’s tropical forests or around 144 million ha are located in Indonesia, scattered from the westernmost tip of Sumatra to the eastern border of Papua, occupying approximately 70 per cent of the country’s land area (Barbier, 1998). Thus, Indonesia ranks third — after Brazil and Zaire — in its endowment of tropical forests (Forest Watch Indonesia, 2002). Indonesia’s forests have been one of its most important natural assets. Forestry related activities have provided an important source of formal as well as informal employment for many people and have generated large amounts of both government revenue and foreign exchange (Indonesia-UK Tropical Forest Management Program, 2001). Meanwhile, deforestation and forest degradation has been the main source of Indonesia’s Green House Gas (GHG) emission; i.e. 70-80% of Indonesia’s GHG emission. Incentive to reduce the rate of deforestation, through the Reducing Emissions from Deforestation and Forest Degradation (REDD) program, has recently widely discussed. In general, the program allows international communities to transfer a certain amount of funding to Indonesia to compensate its successful efforts to reduce its rate of deforestation. The question is what will the likely impact on the Indonesian economy, if Indonesia commits to be involved in this REDD program. This report illustrates the impacts of reduced deforestation have on the Indonesian economy and demonstrates the complexity in distributing Reducing Emissions from Deforestation and Forest Degradation (REDD) fund to compensate the negative economic impacts of reduced deforestation.
Keywords: REDD; Indonesia (search for similar items in EconPapers)
JEL-codes: Q5 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env and nep-sea
Date: 2012-12, Revised 2012-12
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://ceds.feb.unpad.ac.id/wopeds/201204.pdf First version, 2012 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:unp:wpaper:201204
Access Statistics for this paper
More papers in Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University Contact information at EDIRC.
Series data maintained by Arief Anshory Yusuf ().