Targeting REDD+: An empirical analysis of carbon sequestration in Indonesia

Samuel Skidmore, Paulo Santos, Beria Leimona

Research output: Contribution to journalArticleResearchpeer-review

Abstract

The implementation of REDD+ requires knowledge of the willingness to accept land use change contracts and its application over large areas. This paper uses primary data from Indonesia to contrast two approaches to the elicitation of the supply curve for carbon: an auction and an analysis of opportunity costs. The analysis shows that there are important differences between the two approaches for a wide range of prices. An analysis of bidding behavior shows that location and individual preferences (time and risk preferences), but not opportunity costs, play a significant role in this decision. The implications for targeting are discussed.
Original languageEnglish
Pages (from-to)781 - 790
Number of pages10
JournalWorld Development
Volume64
DOIs
Publication statusPublished - 2014

Cite this

Skidmore, Samuel ; Santos, Paulo ; Leimona, Beria. / Targeting REDD+: An empirical analysis of carbon sequestration in Indonesia. In: World Development. 2014 ; Vol. 64. pp. 781 - 790.
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Targeting REDD+: An empirical analysis of carbon sequestration in Indonesia. / Skidmore, Samuel; Santos, Paulo; Leimona, Beria.

In: World Development, Vol. 64, 2014, p. 781 - 790.

Research output: Contribution to journalArticleResearchpeer-review

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AB - The implementation of REDD+ requires knowledge of the willingness to accept land use change contracts and its application over large areas. This paper uses primary data from Indonesia to contrast two approaches to the elicitation of the supply curve for carbon: an auction and an analysis of opportunity costs. The analysis shows that there are important differences between the two approaches for a wide range of prices. An analysis of bidding behavior shows that location and individual preferences (time and risk preferences), but not opportunity costs, play a significant role in this decision. The implications for targeting are discussed.

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