PERANAN INSTRUMEN EKONOMI DALAM MENGURANGI EMISI GAS CO2 “SUATU PERSPEKTIF UNTUK INDONESIA”

Kemas Fachruddin

Abstract


Indonesia still using common and control (CAC) instruments in controlling
environmental problems. Law No 23 year 1997 and decree of the minister
and others regulations related to the law were established based on
top-down policy approach. Environmental problems in most cases are
effective to be controlled using common and control policy, however in
issues of pollution or emission control, economic instrument or market
based instrument is effective compare to the CAC. Another reason is
flexibility of the instrument. This empirical study is intended to analyze
how an instrument economy is useful in controlling CO2 emission. DICE
model (Dynamic Integrated and Climate Change Economic ) or sometime
called Three–Box model system is one of economic models which is
used for controlling CO2 emission in response to potential threat of
global warming. Emission of CO2 from fossil fuel is taxed through
optimation of the model. Emission control rate is policy variable. Model
system equations are solved using General Algebraic Modeling System
(GAMS). Optimum scenario is occurred where value of rate of social
preference 5%. Model outcome suggest that abatement cost having
range between 0.1-6.7% of GDP and reduction of emission in range of
20 - 80% of current emission rate for the period of 1990-2019. In optimal
condition, model suggest that appropriate emission tax for fossil fuel
having range of 0.002 – 0.024 USD per liter or equivalent to 3.90-40.35
USD carbon tax per ton of fossil fuel coal having range 1,95 -20,25
USD per ton CO2.


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DOI: http://dx.doi.org/10.29122/jtl.v8i2.412

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