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Home > Featured Articles > Structuring economic incentives to reduce emissions from deforestation within Indonesia > Structuring economic incentives to reduce emissions from deforestation within Indonesia

Structuring economic incentives to reduce emissions from deforestation within Indonesia [1]

We estimate and map the impacts that alternative national and subnational economic incentive structures for reducing emissions from deforestation (REDD+) in Indonesia would have had on greenhouse gas emissions and national and local revenue if they had been in place from 2000 to 2005. The impact of carbon payments on deforestation is calibrated econometrically from the pattern of observed deforestation and spatial variation in the benefits and costs of converting land to agriculture over that time period. We estimate that at an international carbon price of $10/tCO2e, a “mandatory incentive structure,” such as a cap-and-trade or symmetric tax-and-subsidy program, would have reduced emissions by 163–247 MtCO2e/y (20–31% below the without-REDD+ reference scenario), while generating a programmatic budget surplus. In contrast, a “basic voluntary incentive structure” modeled after a standard payment-for-environmental-services program would have reduced emissions nationally by only 45–76 MtCO2e/y (6–9%), while generating a programmatic budget shortfall.

Publication Date: 
24/01/2012
Jonah Busch [2], Ruben N. Lubowski [3], Fabiano Godoy & et al [4]
Proceedings of the National Academy of Sciences [5]
109
4
1062-1067
Tags:
Deforestation [6], Indonesia [7], REDD [8], Green House Gases [9], Land Use [10], Cap And Trade [11]
Centre for Science and Environment
National Knowledge Commission Government of India

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Source URL: http://admin.indiaenvironmentportal.org.in/feature-article/structuring-economic-incentives-reduce-emissions-deforestation-within-indonesia

Links:
[1] http://admin.indiaenvironmentportal.org.in/feature-article/structuring-economic-incentives-reduce-emissions-deforestation-within-indonesia
[2] http://admin.indiaenvironmentportal.org.in/category/author/jonah-busch
[3] http://admin.indiaenvironmentportal.org.in/category/author/ruben-n-lubowski
[4] http://admin.indiaenvironmentportal.org.in/category/author/fabiano-godoy-et-al
[5] http://admin.indiaenvironmentportal.org.in/category/journal/proceedings-national-academy-sciences
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/deforestation
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/indonesia
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/redd
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/green-house-gases
[10] http://admin.indiaenvironmentportal.org.in/category/thesaurus/land-use
[11] http://admin.indiaenvironmentportal.org.in/category/thesaurus/cap-and-trade