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

Author

Listed:
  • Martana, Kadim
  • Lennox, James A.
  • Evison, David
  • Manley, Bruce

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.

Suggested Citation

  • Martana, Kadim & Lennox, James A. & Evison, David & Manley, Bruce, 2013. "What is the impact of reduced-impact logging (RIL) policy on the Berau Economy?," 2013 Conference, August 28-30, 2013, Christchurch, New Zealand 160268, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzar13:160268
    DOI: 10.22004/ag.econ.160268
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