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Journal Article
JA0588-14
Article TitleTargeting REDD+: An Empirical Analysis of Carbon Sequestration in Indonesia
AuthorSamuel Skidmore, Paulo Santos and Beria Leimona
Year2014
Journal TitleWorld Development
InstitutionElsevier Ltd
Volume64
Pages781-790
Call NumberJA0588-14
KeywordsREDD+, 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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