Chair: International Food Economics and Rural Development

Payments for Carbon Sequestration Services - A Solution to Stop Deforestation of the Lore Lindu National Park in Indonesia?

Abstract: The present research assesses whether payments for carbon sequestration activities can provide an incentive for forest conservation in the Lore Lindu National Park in Central Sulawesi, Indonesia. The encroachment on the forest margin of the Park through agricultural activities and especially cocoa production is occurring at an alarming rate. Hence, we analyze the impact of carbon sequestration payments for cocoa agroforestry systems, as well as for avoided deforestation on the prevailing land use systems. Additionally, the level of incentives which induces farmers to adopt more sustainable land use practices is determined. The household behavior and their resource allocation is analyzed with a comparative static linear programming model. As these models prove to be a reliable tool for policy analysis, the output can indicate the adjustments in resource allocation and land use when introducing compensation payments.

Researchers involved: Christina Seeberg-Elverfeldt, Stefan Schwarze, and various partners at universities in Germany and Indonesia

Funding: DFG, GAUG

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