The costs of reducing deforestation in Indonesia

Hunt, Colin (2010) The costs of reducing deforestation in Indonesia. Bulletin of Indonesian Economic Studies, 46 2: 187-192. doi:10.1080/00074918.2010.503563

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Author Hunt, Colin
Title The costs of reducing deforestation in Indonesia
Journal name Bulletin of Indonesian Economic Studies   Check publisher's open access policy
ISSN 0007-4918
Publication date 2010-08-20
Year available 2010
Sub-type Article (original research)
DOI 10.1080/00074918.2010.503563
Volume 46
Issue 2
Start page 187
End page 192
Total pages 6
Editor Ross H. McLeod
Place of publication London, U.K.
Publisher Taylor & Francis
Collection year 2011
Language eng
Subject D Environment
C Society
B Economic Development
14 Economics
Formatted abstract
"In Indonesia lucrative oil palm is replacing forests at a rapid rate. Developed countries propose to make available funds for the reduction in deforestation and forest degradation (REDD). Compensating for a reduction in palm oil establishment in forests will be costly and there are many stakeholders involved, for example smallholders and tiers of government as well as palm oil companies; and often overlooked are the large economic impacts of spending by companies. Compensation packages need to be designed to deliver similar regional and national benefits to those foregone."

In this second contribution to the Policy Dialogue, Colin Hunt emphasises the large contribution that oil palm plantations and the pulp and paper industry have been making to Indonesia's economic growth in recent years, notwithstanding the environmental consequences of such activities. The implication is that avoided deforestation can be expected to have a significant negative impact on segments of the population who would benefit from the business and employment opportunities that would otherwise be generated, directly or indirectly. Palm oil companies typically spend about three dollars on goods, services and labour for every dollar of profit. The author argues that any compensation package for avoided deforestation needs to include all the potential beneficiaries of palm oil production, not just the palm oil companies, and to generate economic activity similar to that being replaced. (Ed.).
© 2010 Indonesia Project ANU.
Keyword Indonesia
Opportunity costs of REDD
Palm oil
Forest conservation
Economic impact
Climate change
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Title under heading - Policy dialogue: Climate change policy in Indonesia (2)

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2011 Collection
School of Economics Publications
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Citation counts: TR Web of Science Citation Count  Cited 12 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 13 times in Scopus Article | Citations
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Created: Sun, 10 Oct 2010, 13:44:09 EST by Dr Colin Hunt on behalf of School of Economics