Measuring Environmental and Socio-economic Impact of Deforestation at Kalimantan Island

Abstract

Abstract Indonesia’s forests in the period of 2000-2009 has been deforested by about 15.158 million ha out of 103.309 milion ha. Deforestation caused carbon emissions. One method for measuring emissions from deforestation and forest degradation is GeOSIRIS model. A modeled GeOSIRIS policy used a carbon payment system to incentivize emission reductions. Data used in this study were maps of forest cover in 2005 and 2010, map of deforestation 2005-2010, carbon and agricultural price and driver variables for deforestation such as slope, elevation, logarithmic distance to the nearest road or provincial capital, or the amount of area per pixel included in a national park, or a timber plantation. The result of this study showed rate of deforestation was 1.417 million ha/5 years (observed). The REDD policy could decrease deforestation in Kalimantan Island by 0.170 million ha (16.70%), with assumption that international carbon price of US$ 10/tCO2e. The change of emissions due to REDD was 22.29%, or reduced emissions by 245.03 million tCO2e/5 years. Finally, Gross National Revenue from carbon payments (NPV 5 years) was US$ 2,450.34 billion, where incentivize emission reductions to sub-national entities (NPV, 5 years) was US$ 2,150.07 million and net central government surplus from carbon payments was US$ 300.26 million (NPV, 5 years).