The role of fiscal instruments in encouraging the private sector and smallholders to reduce emissions from deforestation and forest degradation: Evidence from Indonesia

Cadman, Tim and Sarker, Tapan ORCID: https://orcid.org/0000-0002-0682-2940 and Muttaqin, Zahrul and Nurfatriani, Firti and Maraseni, Tek ORCID: https://orcid.org/0000-0001-9361-1983 (2019) The role of fiscal instruments in encouraging the private sector and smallholders to reduce emissions from deforestation and forest degradation: Evidence from Indonesia. Forest Policy and Economics, 108:101913. pp. 1-10. ISSN 1389-9341

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Abstract

While developing countries around the world are preparing to implement REDD+, there is a debate on the possible role of fiscal instruments in encouraging the private sector and smallholder stakeholders in reducing emissions. Drawing on a case of Indonesia, an early leader on REDD+, this paper investigates the role of fiscal instruments in encouraging the private sector to reduce forest-based emissions and the implications for improving the forest sector governance. In particular the study highlights the perspectives of a range of forest sector stakeholders on the role of fiscal instruments that contribute either positively or negatively to reducing emissions from deforestation and forest degradation in Indonesia. The study comprised a review of the existing instruments in Indonesia, as well as surveys and interviews. An online survey and structured face-to-face interviews were conducted with a range of forest sector stakeholders, including government, civil society, academia, and palm oil concession holders. Findings indicate that there is a range of formal and informal fiscal instruments at the various jurisdictional levels, and a variety of incentives and disincentives. More emphasis on cross-sectoral co-ordination, alternatives to commodities such as palm oil, and continued land reform, is required.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Current - Institute for Life Sciences and the Environment - Centre for Sustainable Agricultural Systems (1 Aug 2018 -)
Faculty/School / Institute/Centre: Current - Institute for Life Sciences and the Environment - Centre for Sustainable Agricultural Systems (1 Aug 2018 -)
Date Deposited: 14 Jan 2020 05:52
Last Modified: 12 May 2022 05:00
Uncontrolled Keywords: REDD+, Indonesia, Fiscal instruments
Fields of Research (2008): 05 Environmental Sciences > 0502 Environmental Science and Management > 050209 Natural Resource Management
Fields of Research (2020): 41 ENVIRONMENTAL SCIENCES > 4104 Environmental management > 410406 Natural resource management
35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350201 Environment and climate finance
Socio-Economic Objectives (2008): D Environment > 96 Environment > 9603 Climate and Climate Change > 960302 Climate Change Mitigation Strategies
Socio-Economic Objectives (2020): 19 ENVIRONMENTAL POLICY, CLIMATE CHANGE AND NATURAL HAZARDS > 1903 Mitigation of climate change > 190301 Climate change mitigation strategies
Identification Number or DOI: https://doi.org/10.1016/j.forpol.2019.04.017
URI: http://eprints.usq.edu.au/id/eprint/36522

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