What is the impact of reduced-impact logging (RIL) policy on the Berau Economy?

A dynamic recursive CGE model of the Berau District (East Kalimantan Province, Indonesia) was constructed, to analysis the impact of REDD policies. The model was used to simulate a policy to implement reduced-impact logging (RIL) by inducing a seven percent raise in logging cost. Results suggest that impact of the policy to the Berau economy is small. Agricultural-based households’ welfare decreased (with forestry households the most impacted) while non-agricultural households were better off. As logging output declines, other agricultural outputs increase, since factors of production that are not used in the logging sector, are re-employed in other agricultural sectors, especially the oil palm sector.


Keywords:
Issue Date:
2013-08
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/160268
Total Pages:
16




 Record created 2017-04-01, last modified 2017-08-27

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