Estimating the opportunity costs of avoiding oil palm-based deforestation in Indonesia:Implications for REDD

Reducing emissions due to deforestation is considered a low-cost option for mitigating climate change.However,the recent literature suggests higher opportunity costs because of specific deforestation drivers,which render reducing emissions from deforestation and forest degradation(REDD+)for mitigating climate change an uncertain,less attractive,and controversial option.Indonesia is one of the largest greenhouse gas emitters.Since 1989,53.80%of its oil palm expansion has come from forestlands,which has generated a significant amount of carbon emissions.This study uses official data and results from the relevant literature to estimate the costs of oil palm-based deforestation under various scenario assumptions,including different output prices,yields,time horizons,and discount rates.We also calculate the additional cost to preserve a 1-ha forest.We demonstrate that the average opportunity cost from avoiding oil palm-based deforestation is 24.42 USD/tCO_(2)eq in Indonesia,approximately 1.3 times the 2011 EUA carbon price.Additional sums of around 5,466.90–11,042.96 USD/ha should be provided to landowners for the deforestation avoidance caused by oil palm expansion.Special attention should be given to the extensive oil palm expansion in Indonesia and the resulting high opportunity costs for achieving the REDD+​target.

Forest Tenure Transfer and Assessment of Dayi County

According to analysis of basic situations and achievements of forest tenure transfer in Dayi County,this paper points out problems in the assessment of forest tenure transfer in Dayi County,including few specialized organizations and personnel of forest tenure transfer value assessment,outmoded forest tenure assessment operating specifications,low charges of forest tenure assessment,and weak awareness of forest tenure assessment. In line with these problems,it presents ideas of increasing specialized forest tenure assessment organization,strengthening training of specialized forest tenure assessment personnel,promoting guiding price of forest tenure transfer,and energetically developing forest tenure transfer market. It is hoped to promote development of forest tenure transfer in Dayi County.