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Targeting REDD+: An Empirical Analysis of Carbon Sequestration in Indonesia
Author
Samuel Skidmore, Paulo Santos and Beria Leimona
Year
2014
Journal Title
World Development
Institution
Elsevier Ltd
Volume
64
Pages
781-790
Call Number
JA0588-14
Keywords
REDD+, targeting, auction, opportunity costs, Southeast Asia, Indonesia
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.
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