The role of fiscal instruments in encouraging the private sector and smallholders to reduce emissions from deforestation and forest degradation: Evidence from Indonesia

While developing countries around the world are preparing to implement REDD+, there is a debate on the possible role of fiscal instruments in encouraging the private sector and smallholder stakeholders in reducing emissions. Drawing on a case of Indonesia, an early leader on REDD+, this paper investigates the role of fiscal instruments in encouraging the private sector to reduce forest-based emissions and the implications for improving the forest sector governance. In particular the study highlights the perspectives of a range of forest sector stakeholders on the role of fiscal instruments that contribute either positively or negatively to reducing emissions from deforestation and forest degradation in Indonesia. The study comprised a review of the existing instruments in Indonesia, as well as surveys and interviews. An online survey and structured face-to-face interviews were conducted with a range of forest sector stakeholders, including government, civil society, academia, and palm oil concession holders. Findings indicate that there is a range of formal and informal fiscal instruments at the various jurisdictional levels, and a variety of incentives and disincentives. More emphasis on cross-sectoral co-ordination, alternatives to commodities such as palm oil, and continued land reform, is required

Policy and Projects: Reduction of Carbon Emissions in the Manufacturing Industry in South Asia

This study investigates manufacturing industry carbon reduction policy based on sustainable developmentcriteria for Clean Development Mechanism (CDM); one of the three Emissions Trading System (ETS)mechanisms. Based on the manufacturing industry CDM projects undertaken in the South Asian countries, it alsoexplores the growth of Certified Emission Reduction (CERs) in relation with Estimated Emission Reduction(EERs) for the period between 2006 and 2011. The study finds that the majority (90%) of the CDM projects inSouth Asian countries are based in India. The registered projects are mostly concentrated on fuel switch orenergy efficiency of which less than half (44%) belong to the Cement industry and about 24% belong to Brickmanufacturing industry. The study also finds an unstable trend of CERs (116% on an average) and weakcorrelation (30%) against EERs followed by low CERs (17%) and negative correlations about 33% againstcumulative EERs. This study recommends specific targets for the post 2012 period both for EERs and CERsfor the manufacturing industry in deciding carbon emissions targets to achieve maximum credits from emissionstrading.Keywords: Sustainable Development Criteria, Emissions Trading System, CDM project, Estimated EmissionReductions (EERs), Certified Emission Reductions(CERs)

Sustainable Coastal and Maritime Tourism: A Potential Blue Economy Avenue for Bangladesh

The geographic and strategic location of Bangladesh beside the Bay of Bengal has opened up multidimensional opportunities for the development of coastal and maritime tourism (CMT). Though various legal documents and research have already detected opportunities for CMT from the perspective of Bangladesh, there is scant evidence of any systematic research on the institutional arrangements influencing the prospect of the development and promotion of CMT in Bangladesh. The status of the sociocultural, economic, environmental, and institutional perspectives on the coastal and marine zones of Bangladesh warrants an in-depth study focusing on the institutional arrangements that can support sustainable CMT in Bangladesh. Therefore, we examine the institutional arrangements to identify the prospects and challenges involved in developing sustainable CMT in Bangladesh. In particular, we appraise the existing institutions that support sustainable CMT and suggest policy guidelines to develop sustainable CMT policy and practice in Bangladesh. We also consider how sustainable CMT can potentially influence the blue economy, which can enhance poverty reduction through new job creation, biodiversity conservation, environmental pollution control, and the promotion of the sustainable use of coastal and marine natural resources. We aim to draw some useful policy guidelines for policy makers to intensify their emphasis on sustainable CMT as an avenue to promote the blue economy and facilitate better living standards for coastal zone communities

Energy Sources and Carbon Emissions in the Iron and Steel Industry Sector in South Asia

This paper examines CO2 emissions from electricity and fuel consumption of different energy sources consumed in the Iron and Steel Industry sector (non-ferrous included, also known as basic metal) in five South Asian countries including Bangladesh, India, Nepal, Sri Lanka and Pakistan. The study finds that about 30% of the total energy in the manufacturing industry is used in this sector, which is about 11% of total industrial input, contributing approximately 13% to the Manufacturing Value Added (MVA). Electricity, on the other hand, shares almost 60% of total energy consumption in the five countries in South Asia, followed by natural gas, coal, kerosene and diesel. The study also finds that CO2 emissions vary across sectors in countries in which the study was conducted. For instance, while in Bangladesh CO2 emissions are primarily caused by electricity generation, in India the majority of CO2 emissions are originated from coal. On the contrary, CO2 emissions in Nepal are mostly generated through other fuels such as Charcoal, Diesel and Kerosene. This study provides some policy recommendations, which could help reduce CO2 emissions in the Iron and Steel Industry sector in the South Asian region. Keywords: CO2 Emissions, Iron & Steel Industry, South Asia JEL Classifications: L61; Q40; Q5

Sustainable coffee supply chain management: a case study in Buon Me Thuot City, Daklak, Vietnam

This paper aims to analyze and discuss the evolution towards sustainable coffee supply chain and its management in Vietnam. Coffee is a major agricultural export commodity of Vietnam with the export value accounts for 3% of national GDP in 2014 and provides a livelihood for approximately 2.6 million people. However, the sector is facing enormous challenges as the current farming methods and processing infrastructure have been unsustainable resulting in many catastrophic impacts on the environment such as deforestation and soil degradation that have the potential to lead to a decrease in the quality of coffee beans. Using a case study in Buon Me Thuot City, Daklak, Vietnam, the paper analyses the key factors influencing the sustainable coffee supply chain management in Vietnam. Our analysis confirms that although productivity is high, and farmers have positive experiences in this sector, sustainability issues are emerging. For instance, the farmers have experienced soil erosion and a lack of water and as such are now more willing to incorporate sustainability initiatives in their production and processing

Demographic Dividend, Digital Innovation, and Economic Growth: Bangladesh Experience

This study aims to understand the linkages between demographic dividends, digital innovation, and economic growth, using Bangladesh as a case study. It adopts a three-stage least squares (3SLS) model to explore how and to what extent the digitization and demographic transition lead towards faster economic growth in Bangladesh. Results imply that economic growth is significantly influenced both by digitization and the demographic transition. Estimation reveals that with an increase of 1 percentage point in the number of internet users, the GDP would increase by 0.11%, ceteris paribus, while a 10-basis point decrease in the dependency ratio would increase the GDP by 7.2%, on average. The key driving factors for digitization are the labor participation rate, workers’ productivity, and mobile penetration. The urbanization rate, however, adversely impacts the rise in internet users. Estimations imply that the Human Development Index (HDI) score and urbanization rate have significant negative impacts on the dependency ratio, while female participation in the labor force has a positive impact on it. The study provides insights to assist the government and policymakers in framing a roadmap on how Bangladesh could utilize demographic transition to achieve faster economic growth while fostering digitization and technological innovation. Lessons learned could also be used in other developing countries in the Asia and Pacific region

Factors Influencing the Green Bond Market Expansion: Evidence from a Multi-Dimensional Analysis

Expansion of green bond markets as an appropriate way to lower environmental pollution is one of the most debatable issues among scholars. However, the expansion of this market is not a simple matter and depends on several factors. The main purpose of this study is to carry out a multi-dimensional analysis using the analytic hierarchy process (AHP) method to find and prioritize factors influencing the development of green bond markets. As a case, we do our analysis for Vietnam that, since the last years, has been trying to expand green bond market as an effective investment channel to finance low-carbon projects. The main findings revealed that legal infrastructure, official interest rate of green bonds, and economic stability are the most important factors directly affecting green bond market expansion. Therefore, economic and legal requirements should be addressed by policy makers. As major policy implications, we recommend an affordable price of green bonds and improvement of economic and financial stability to accelerate the development of green bond markets

SMEs’ Changing Organisational Landscape: Strategising the Workplace of the Future

All of us are having to operate under a ‘new normal’ in a post-COVID-19 pandemic peak. On the one hand, as business organisations have been trying to move towards normal operational and financial capability post the 2007/08 global crash, the outbreak of the pandemic in 2019/20 has provided many new challenges and opportunities. Dealing with the challenges will enhance business organisational and operational efficiency and effectiveness and enable staff and Human Resource Management to innovatively think outside the box. As the lifeblood of regional and national economies worldwide, Small and Medium Enterprises (SMEs) are pivotal in spearheading innovative strategies of how Human Resource professionals and staff can mitigate against the challenges whilst maximising the opportunities from now onwards

Role of the Land-Based Private Sector in Low-Emission Development: An Indonesian Case

The land-based private sector is a critical player in reducing emissions in Indonesia. While the Indonesian Government has undertaken various national efforts to reduce the rate of deforestation and land degradation, the involvement of land-based private sectors are still minimal. Using content and thematic analysis, this study explores why land-based private sector is not leading to low carbon development in Indonesia. More specifically, this study aims to: (1) analyse two key policies critically shaping the land-based private sector’s involvement in low emission development in Indonesia; (2) identify the land-based sector’s practices to engage in the development of low carbon policies in the East Kalimantan Province in Indonesia; and (3) conduct a participants’ perceptions analysis to identify the critical factors influencing their involvement in low emissions development. The results show that even though the Government has adopted several mandatory regulations to support the land-based private sector’s participation in emission reduction activities, to date, only a handful of businesses are actively involved in emission reduction efforts. The key barrier identified is the lack of incentives for the businesses to implement low emission programs/activities. This study offers four specific policy recommendations that could support land-based private sector involvement in low emission development in Indonesia. These include (1) establishment of an independent monitoring agency; (2) incentives for ecologically sustainable companies that meet predetermined standard criteria; (3) strict and fair sanctions as disincentives for companies that ignore regulations, and (4) building capacity of the land-based private sector to adopt and develop innovative low emission practices

Spillovers of the COVID-19 Pandemic: Impact on Global Economic Activity, the Stock Market, and the Energy Sector

In this study, we examine the effect of the COVID-19 pandemic on global economic activity, the stock market, and the energy sector considering the sizable damaging impacts in these crucial aspects. Our results, based on the structural vector autoregression (SVAR) model for the data from 21 January 2020, to 26 February 2021, indicate that the COVID-19 cases significantly and negatively impact all the endogenous variables such as Baltic dry index (BDI), MSCI world index (MSCI), and MSCI world energy index (MSCIE). Our results also reveal that of the three variables, the stock markets indices (MSCI and MSCIE) are comparatively more affected by COVID-19 cases. The findings imply that the stock markets are more sensitive to the COVID-19 pandemic than the real economy. The results further indicate that of the three variables, the MSCIE index is the most affected by COVID-19 due to two factors: one is the dwindling power consumption caused by COVID-19 and the other is the decline in oil price because of the Russia–OPEC price war. Our findings enhance the understanding of the spillover impacts of the global health crisis on economic activity, the stock market, and the energy sector. Moreover, our study offers insights for policymakers and governments into the relationship dynamics of COVID-19 that would help them be more cautious in taking preventive measures against the health crisis to save the economy, the stock market, and the energy sector from falling into a more deepened crisis