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

Type of content
Publisher's DOI/URI
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Degree name
Publisher
University of Canterbury. School of Forestry
Journal Title
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Date
2013
Authors
Martana, K.
Evison, D.
Manley, B.
Lennox, J.
Abstract

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.

Description
Citation
Martana, K,. Lennox, J., Evison, D., Manley, B. (2013) What is the impact of reduced-impact logging (RIL) policy on the Berau economy?. Lincoln, Canterbury: 2013 NZARES Conference, 28-30 August 2013.
Keywords
reduced impact logging, CGE, forestry, Indonesia
Ngā upoko tukutuku/Māori subject headings
ANZSRC fields of research
Fields of Research::38 - Economics::3801 - Applied economics::380101 - Agricultural economics
Fields of Research::30 - Agricultural, veterinary and food sciences::3007 - Forestry sciences::300799 - Forestry sciences not elsewhere classified
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