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The Effect of Forest Fires and Oil Palm Plantations on Green House Gases (GHG) Emissions in Indonesia

Author

Listed:
  • Farida Yulistianingrum

    (Master of Applied Economics, Padjadjaran University)

Abstract

Indonesia had recorded a large amount of carbon emissions from forests and peatland fires in last decade. This study therefore, investigates the effect of forest fires and oil palm plantations on GHG (Green-House Gases) emissions in Indonesia using the econometrics approach. The statistical result indicates that fire incidences (hotspots) do have a positive significant effect on GHG emissions in Indonesia. This implies that people still use fire as medium for land clearing in the forest. The coefficients of oil palm plantation measurement on GHG emission are positive, implying that land clearing process in forest and peatland areas and converting them into oil palm plantations have increased GHG emissions. To establish a system for sustainable forest management, it will be crucial that the government maintain the enforcement of legal sanctions to every aspect who burning the forests deliberately.

Suggested Citation

  • Farida Yulistianingrum, 2019. "The Effect of Forest Fires and Oil Palm Plantations on Green House Gases (GHG) Emissions in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201909, Department of Economics, Padjadjaran University, revised Dec 2019.
    • Handle: RePEc:unp:wpaper:201909
    as

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    File URL: http://ceds.feb.unpad.ac.id/wopeds/201909.pdf
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    References listed on IDEAS

    as
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    2. Shahbaz, Muhammad & Hye, Qazi Muhammad Adnan & Tiwari, Aviral Kumar & Leitão, Nuno Carlos, 2013. "Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 109-121.
    3. Muhammad Shahbaz & Smile Dube & Ilhan Ozturk & Abdul Jalil, 2015. "Testing the Environmental Kuznets Curve Hypothesis in Portugal," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 475-481.
    4. Luca Tacconi, 2016. "Preventing fires and haze in Southeast Asia," Nature Climate Change, Nature, vol. 6(7), pages 640-643, July.
    5. Alam, M. Shahid, 2006. "Economic Growth with Energy," MPRA Paper 1260, University Library of Munich, Germany.
    6. repec:eco:journ2:2017-04-13 is not listed on IDEAS
    7. Susan E. Page & Florian Siegert & John O. Rieley & Hans-Dieter V. Boehm & Adi Jaya & Suwido Limin, 2002. "The amount of carbon released from peat and forest fires in Indonesia during 1997," Nature, Nature, vol. 420(6911), pages 61-65, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    forest fires; oil palm; green house gases; emissions Indonesia;
    All these keywords.

    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

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