THE ECONOMY-WIDE IMPACT OF THE INTEGRATED FOOD CROP PEST MANAGEMENT IN INDONESIA

The excessive use of pesticides in Indonesia during the 1970s and 1980s caused serious environmental problems such as acute and chronic human pesticide poisoning, animal poisoning and contaminated agricultural products, destruction of both beneficial natural parasites and pest predators, and pesticide resistance in pests. To overcome these environmental problems, since 1989 the Indonesian government has actively adopted a strategy of integrated pest management (IPM). During the first few years of the IPM program's implementation, the program has been able to help farmers reduce the use of pesticides by approximately 56 percent, and increase yields by approximately 10 percent. However, economic literature that analyzes the impact of the IPM program on household incomes and national economic performance is very limited. The general objective of this research is to analyze the impact of the IPM program on Indonesian economic growth and household incomes for different socioeconomic groups.Crop Production/Industries,

Indonesia's Clean Air Program

Unprecedented industrial development in Indonesia during the last two decades, accompanied by a growing population, has increased the amount of environmental damage. One of the most important environmental problems is that the level of air pollution in several large cities has become alarming, particularly in the last few years. This high pollution level has stimulated the government to develop a national clean air program designed to control the quantity of pollutants in the air. However, the impact of this national clean air program on national economic performance and household incomes has not yet been analysed systematically. The main goal of this paper is to analyse the expected impact of the clean air program on national economic performance and household incomes for various socio-economic groups.environmental economics, computable genral equilibrium model

THE CONSTRUCTION OF A BIOECONOMIC MODEL OF THE INDONESIAN FLYING FISH FISHERY

The high price of flying fish eggs in Japan encourages South Sulawesi fishermen in Indonesia to harvest increasing quantities of eggs every year. Similarly, the increasing local demand for flying fish encourages Indonesian fishermen to use gill nets to catch more fish. As a consequence of this increasing quantity of eggs harvested and fish caught, Indonesia has become concerned about the overexploitation of the flying fish population. Thus far policy suggestions concerning the management of the flying fish fishery have been based on a static biological model, since the data needed to construct a dynamic bioeconomic model are very limited. This paper presents a method for constructing a dynamic bioeconomic model of the Indonesian flying fish fishery with very limited data on the fish population. A calibration technique is developed to build the dynamic biological model.Resource /Energy Economics and Policy,

Impact of the Integrated Pest Management Program on the Indonesian Economy

The excessive use of pesticides in Indonesia during the 1970s and 1980s caused serious environmental problems, such as acute and chronic human pesticide poisoning, animal poisoning, the contamination of agricultural products, the destruction of both beneficial natural parasites and pest predators, and pesticide resistance in pests. To overcome these environmental problems, the Indonesian government implemented an integrated pest management (IPM) program from 1991 to 1999. During that time, the program was able to help farmers reduce the use of pesticides by approximately 56% and increase yields by approximately 10%. However, economic literature that analyses the impact of the IPM program on household incomes and national economic performance is very limited. The general objective of this research is to analyse the impact of the IPM program in food crops on the Indonesian economy and household incomes for different socioeconomic groups.computable general equilibrium model, agricultural economics,environmental economics

The Economy-wide Impact of Fuel Oil, Gas and Electricity Pricing and Subsidy Policies as well as Their Consumption Improvement Efficiency in Indonesia

In Indonesia, the government determines the domestic prices of energy; namely fuel oil, such as gasoline, automotive diesel oil (ADO) and kerosene, gas and electricity. In response to the weakening of rupiah during the 1997/1998 economic crisis and the increasing of the world price of crude oil, the government tends to increase the energy subsidy on domestic prices of fuel oil, gas and electricity, rather than letting these domestic prices follows the world prices of fuel oil, gas and electricity. Currently domestic prices of fuel oil, such as gasoline, automotive diesel oil, kerosene as well as gas and electricity are significantly lower than the world prices of those commodities. Meanwhile government subsidy for fuel oil, gas and electricity has reached approximately 30 per cent of total government expenditure. There have been suggestions that the government should eliminate this subsidy letting the prices of fuel oil, gas and electricity equal to the world prices, since, among others, energy subsidy has foregone government’s opportunities to spend more on development expenditures that would improve the country’s growth rate. On the other hand various groups keep pressing the government to keep the prices of fuel oil, gas and electricity; i.e. do not reduce the energy subsidy, since the poor could not afford higher prices of fuel oil, gas and electricity.fuel subsidy, CGE, Indonesia

The Economy-wide Impact of Controlling Energy Consumption in Indonesia: An Analysis Using a Social Accounting Matrix Framework

Escalating oil prices and the need to control carbon emissions sound the alarm for Indonesia to reduce or be more efficient in its energy use. To create an incentive for society to be more energy efficient, the government needs to reduce the current energy subsidy, which, in any case, has imposed a tremendous fiscal burden on the country. This paper aims to analyse the impact on the economy of energy policies aiming to reduce and to improve the efficiency of energy use, particularly on the income of various household groups. This paper will, first, construct a Social Accounting Matrix for Indonesia with detailed energy sectors and, second, utilise various multiplier analyses to observe and understand the impact of these energy policies.Social Accounting Matrix, Energy, Indonesia

Does Sending Farmers Back to School Have An Impact? A Spatial Econometric Approach

Replaced with revised version of paper 02/08/07.agricultural economics, spatial econometrics, economic development, Labor and Human Capital, Q12, C59, O13,

Assessing the Value of Clean Air in a Developing Country: A Hedonic Price Analysis of the Jakarta Housing Market, Indonesia

This paper is motivated by the common argument that clean air is a luxury good and has much less or even no value in a less developed country. It applies a hedonic property value analysis, a method commonly used to infer the value of clean air in developed countries, using a combination of data on house values and their characteristics from the Indonesian Family Life Survey, and data of the ambient level of six different pollutants in Jakarta, Indonesia. The result suggests that air quality may affect property value in Jakarta, indicating a preference toward environmental amenities. Moreover, this study is one of the first hedonic studies that may potentially give comparable estimates of the value of clean air in developing countries.Hedonic Prices, Air Pollution, Indonesia

Indonesia

This paper is motivated by the common argument that clean air is a luxury good and has much less or even no value in a less developed country. It applies a hedonic property value analysis, a method commonly used to infer the value of clean air in developed countries, using a combination of data on house values and their characteristics from the Indonesian Family Life Survey, and data of the ambient level of six different pollutants in Jakarta, Indonesia. The result suggests that air quality may affect property value in Jakarta, indicating a preference toward environmental amenities. Moreover, this study is one of the first hedonic studies that may potentially give comparable estimates of the value of clean air in developing countries

Is the Log Export Ban Effective? Revisiting the Issue through the Case of Indonesia

The effectiveness of a log export ban policy in achieving the twin goals of conservation and economic development has been vigorously debated by many researchers and policymakers for the last two decades or so. Despite the abundance of work focusing on this issue that demonstrates the perversity of this policy, many countries around the world still implement it. This paper will, first, review the economic and political arguments on the pros and cons of this policy. Second, it will review the Indonesian experience in implementing the policy in the 1980s and 2000s. Third, using a CGE model, this paper will predict the anticipated impact of implementing the log export ban policy on the national economy and on household incomes for various socio-economic groups.log export ban policy, conservation and economic development, national economy, household incomes, CGE