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 \(\$15.45\) per ton of carbon or \(\$4.21\) 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.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Akao K (2011) Optimal forest program when the carbon sequestration service of a forest has value. Environ Econ Policy Stud 13:323–343
Bellassen V, Gitz V (2008) Reducing emissions from deforestation and degradation in Cameroon: assessing costs and benefits. Ecol Econ 68: 336–344
Butler RA, Koh LP, Ghazoul J (2009) REDD in the red: palm oil could undermine carbon payment schemes. Conserv Lett 2: 67–73
Caldecott J, Indrawan M, Rinne P, Halonen M (2011) Indonesia–Norway REDD+ partnership: first evaluation of deliverables. Final Report, 3 May 2011
Couto Pereira SN (2010) Payment for environmental services in the Amazon forest: how can conservation and development Be reconciled? J Environ Dev 19:171–190
Deveny A, Nackoney J, Purvis N (2009) Forest carbon index: the geography of forests in climate change solutions. Resour Future
FAO (2010) Global forest resources assessment 2010. Food and Agriculture Organization of the United Nations, Rome
Grieg-Gran M (2008) The cost of avoiding deforestation. Update of the Report prepared for the Stern Review of the Economics of Climate Change. International Institute for Environment and Development
Hansen MC, Stehman SV, Potapov PV, Arunarwati B, Stolle F, Pittman K (2009) Quantifying changes in the rates of forest clearing in Indonesia from 1990 to 2005 using remotely sensed data sets. Environ Res Lett 4:1–12
Hooijer A, Page S, Canadell JG, Silvius M, Kwadijk J, Wösten H, Jauhiainen J (2010) Current and future CO2 emissions from drained peatlands in southeast asia. Biogeosciences 7:1505–1514
IPCC (2006) IPCC guidelines for national greenhouse gas inventories. In: Eggleston HS, Buendia L, Miwa K, Ngara T, Tanabe K (eds) Prepared by the national greenhouse gas inventories programme. Institute for Global Environmental Strategies, Japan
IPCC (2007) Climate change 2007: the physical science basis. In: Solomon S, Qin D, Manning M, Chen Z, Marquis M, Tignor KBM, Miller HL (eds) Contribution of working group I to the fourth assessment report of the intergovernmental panel on climate change. Cambridge University Press, Cambridge
Jaenicke J, Rieley JO, Mott C, Kimman P, Siegert F (2008) Determination of the amount of carbon stored in Indonesian peatlands. Geoderma 147:151–158
Osafo YB (2005) Reducing emissions from tropical forest deforestation: applying compensated reduction in Ghana. In: Moutinho P, Schwartzman S (eds) Tropical deforestation and climate change. Amazon Institute for Environmental Research, Amazon, pp 63–72
Osborne T, Kiker C (2005) Carbon offsets as an economic alternative to large-scale logging: a case study in Guyana. Ecol Econ 52:481–496
Palm CA, Woomer PL, Alegre J, Arevalo L, Castilla C, Cordeiro DG, Feigl B, Hairiah K, Kotto-Same J, Mendes A, Moukam A, Murdiyarso D, Njomgang R, Parton WJ, Ricse A, Rodrigues V, Sitompul SM, Noordwijk MV (1999) Carbon sequestration and trace gas emissions in slash-and-burn and alternative land-uses in the humid tropics. ASB Climate Change Working Group, Final Report Phase II, October 1999
Silva-Chávez GA (2005) Reducing greenhouse gas emissions from tropical deforestation by applying compensated reduction to Bolivia. In: Moutinho P, Schwartzman S (eds) Tropical deforestation and climate change. Amazon Institute for Environmental Research, Amazon, pp 73–86
The World Bank (2010) State and the trend in the carbon market 2010
Tomich TP, Noordwijk MV, Budidarsono S, Gilison A, Kusumanto T, Murdiyarso D, Stolle F, Fagi AM (eds) (1998) Alternatives to slash-and-burn in Indonesia: summary report and synthesis of phase II. ASB-Indonesia Report Number 8
Wang Z, Lu Y (2010) Compensation for the conversion of sloping farmland to forest in China: a feasibility study of payment based on carbon sink. J Environ Dev 19:28–41
Acknowledgments
The previous version of this paper has been presented at the 2011 annual meeting of the Society for Environmental Economics and Policy Studies held in Nagasaki University. Helpful comments from Makoto Inoue and session participants are gratefully acknowledged. We thank Aswin Usup, Ferrawanti Tusthenes, and Towa Tachibana for their help in conducting the field survey. This work was supported by JST/JICA SATREPS project “Wild Fire and Carbon Management in Peat-Forest in Indonesia” and the Asahi Glass Foundation.
Author information
Authors and Affiliations
Corresponding author
About this article
Cite this article
Yamamoto, Y., Takeuchi, K. Estimating the break-even price for forest protection in Central Kalimantan. Environ Econ Policy Stud 14, 289–301 (2012). https://doi.org/10.1007/s10018-012-0030-x
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10018-012-0030-x