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Environmental Economics Policy Brief (Executive summary (A statement on…
Environmental Economics Policy Brief
Executive summary
A description of the problem addressed
Indonesia has one of the highest rates of deforestation in SE Asia, having lost over 50% of its original forest cover
https://esajournals.onlinelibrary.wiley.com/doi/full/10.1002/ecs2.1624
Lost 36.7% of total tree cover between 2001 and 2018
https://rainforests.mongabay.com/deforestation/archive/Indonesia.htm
Indonesia is the most heavily forested place on Earth after the Amazon, and is home to roughly 11% of the world’s flowering plants, 13% of its mammals – including 46 primate species, 6% of its amphibians, 7% of its reptiles,16% of its birds and 14% of its fish
https://www.fauna-flora.org/countries/indonesia
Global demand for natural rubber is increasing because many products, such as tyres, industrial equipment, medical and laboratory devices, use it
https://0-www-sciencedirect-com.pugwash.lib.warwick.ac.uk/science/article/pii/S0959652619332275?via%3Dihub
Has worlds largest rubber plantation area and produces 25% of global natural rubber supplies
A statement on why the current approach/policy option needs to be changed
Indonesia has pledged an ‘unconditional reduction target of 29% and conditional reduction target up to 41% of the business-as-usual scenario by 2030 ’
https://0-www-sciencedirect-com.pugwash.lib.warwick.ac.uk/science/article/pii/S138993411830460X?via%3Dihub
According to the Indonesian NDC, projected emissions from land use change, forestry and peatland fires should be reduced by 91%, an extremely high target. Achieving that target will be challenging and require a range of policies and activities
https://0-www-sciencedirect-com.pugwash.lib.warwick.ac.uk/science/article/pii/S138993411830460X?via%3Dihub
Its final design and implementation should learn from past experience similar to that generated by the National Action Plan for Greenhouse Gas Emissions Reductions. This plan was implemented between 2010 and 2014 following the commitment made by the Indonesian President at the G20 meeting in 2009 to reduce emissions by 2020 by 26% unconditionally and by a further 15% depending on international financial support. Essentially, the research found that there is little evidence that any of the forestry related activities of the Action Plan had reduced emissions. Emissions increased by about 38% between 2010 when they stood at 1337.4 MtCO2e (Government of Indonesia, 2016), and 2014 when they reached 1844.3 MtCO2e
https://0-www-sciencedirect-com.pugwash.lib.warwick.ac.uk/science/article/pii/S138993411830460X?via%3Dihub
https://0-www-sciencedirect-com.pugwash.lib.warwick.ac.uk/science/article/pii/S1389934118304623?via%3Dihub
https://0-www-sciencedirect-com.pugwash.lib.warwick.ac.uk/science/article/pii/S1389934118304647?via%3Dihub
Significant commitments have been made by the Indonesian government to reduce emissions from deforestation and forest degradation. However, the lack of careful consideration in implementing policy, combined with the lack of engagement with certain agents in the economy (particularly those in the private sector) have resulted in many forecasting that Indonesia will fall significantly short of target
https://0-www-sciencedirect-com.pugwash.lib.warwick.ac.uk/science/article/pii/S1389934118304647
Your recommendations for action
Market based incentives
Eco-certification premiums
Carbon Payments
https://0-www-cambridge-org.pugwash.lib.warwick.ac.uk/core/journals/environment-and-development-economics/article/marketbased-instruments-for-riskaverse-farmers-rubber-agroforest-conservation-in-jambi-province-indonesia/B4A6268591CDFD93240DA04683F5B2C3/core-reader
Pigouvian Taxes
Behavioural economics
Behavioural nudges
Precontemplation - increasing information about the benefits of agroforestry and how perceived barriers can be easily overcome
Contemplation - likely seek clarification on agroforestry benefits
Preparation
Action
Increased productivity of rubber plantations
Providing subsidised interest loans for farmer's working capital infrastructure development and supporting infrastructure for productivity
Role for central government is as policymakers and strateigic decision makers . Local governments must be actively involved as the initiator and facilitator to establish policies that support commodity development programmes
http://ap.fftc.agnet.org/ap_db.php?id=1093
Context and importance of the problem
A clear statement of the problem or issue in focus
Short overview of the root causes of the problem (
framed in economic analysis
)
A clear statement of the policy implications of the problem that clearly establishes the current importance and policy relevance of the issue. This could be, for instance, in terms of its economic costs ($$$)
Critique of policy option(s)
A short overview of the policy option(s) in focus
An argument illustrating why and how the current or proposed approach is failing framed in economic analysis
Policy recommendations
An argument illustrating why and how the preferred policy is indeed preferrable, framed in economic analysis
Addressing the problem and issues relating to implementation. A breakdown of the specific practical steps or measures that need to be implemented
Conclusion
https://www.theguardian.com/environment/2014/jun/29/rate-of-deforestation-in-indonesia-overtakes-brazil-says-study
(Picture)