Uncertainty in Estimates, Incentives, and Emission Reductions in REDD+ Projects

Abstract

The accurate monitoring and measurement of emission reductions is a critical step in Reducing Emissions from Deforestation and Degradation (REDD+). However, the existence of uncertainty in emission reduction estimates affects the performance of REDD+ projects. We assert that incentive could be a valuable policy tool for reducing monitoring errors and transaction costs. Using Stackelberg models and simulation research, this paper examines the effects of uncertainty and incentive on performance and stakeholder benefits of REDD+ projects. Finally, the uncertainties in REDD+ projects are further discussed, and equilibrium errors, emission reductions, and stakeholder benefits in different scenarios are compared. The results show that errors do affect the measured value of carbon emissions and compensation payments. However, incentive for investors can reduce monitoring errors and improve the performance of REDD+ projects. Therefore, in the future, incentive should be provided to investors rather than landholders.

Regulation on the Utilization of Carbon Service as a Forest Protection Effort in Indonesia

“…REDD+ is the second scheme after the Clean Development Mechanism (CDM) which links the main tasks of developed countries for climate change mitigation. The central focus of this strategy revolves around endeavors aimed at curbing deforestation and the deterioration of forests, recognized as the leading factors driving global warming (Sheng et al, 2018). In general, it can be said that REDD+ is an effort to help countries that have forests by protecting their forests (Laurens & Fristikawati, 2014).…”

Identification of Socio-Economic Impacts as the Main Drivers of Carbon Stocks in China’s Tropical Rainforests: Implications for REDD+

“…About half of the illegal removal of timber from forests in East Africa is largely due to fuel wood harvesting [ 34 , 35 ]. In addition, most of Indonesia’s deforestation is driven by expanding agriculture such as rice, rubber, and palm oil [ 36 , 37 , 38 , 39 ]. The identification and analysis of the socio-economic forces driving forest change form the basis for the implementation of REDD+ projects [ 40 , 41 , 42 , 43 ].…”