1 AIT Asian Institute of Technology

Appropriate conservation of Indonesian peatlands through the pricing of full ecosystem services

AuthorPertiwi, Nurul
Call NumberAIT Thesis no.NR-20-03
Subject(s)Peatlands--Conservation--Indonesia
Peatlands--Economic aspects--Indonesia

NoteA Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Science in Natural Resources Management, School of Environment, Resources and Development
PublisherAsian Institute of Technology
Series StatementThesis ; no. NR-20-03
AbstractPeatlands are widely recognized as the largest terrestrial carbon storage, in addition to storing water and providing various ecosystem services. While Indonesia possesses the largest tropical peatlands, overexploitation, mismanagement, clearing for industrial plantations cause rapid peatland degradation and eventual huge carbon emissions. Although various efforts were undertaken to restore and protect the peatlands, many of them have failed because of economically less attractive to other forms of land uses. This study aimed at investigating the possible use of appropriate pricing of full ecosystem services as a potential means of effective conservation of peatlands in comparison with revenue from other types of existing land use. The benefit-cost analysis was conducted to determine the carbon price and assess other ecosystem services on peatlands with several land use options, namely, conservation for carbon stocks and full ecosystem services, clearing for oil palm or rubber plantation. Key informant interviews were used to analyze the current land use practices, while revenues from land utilization were assessed under two discount rates on one management cycle. Conservation with and without benefits from ecosystem services was particularly discussed taking into consideration on existing global agreements on SDGs and Convention on Biological Diversity. Results from benefit-cost analysis indicated that peatland conservation under business as usual are not attractive compared to oil palm and rubber plantation at 0.03 US$/tCO2e. However, with considering value from full ecosystem services, overall pricing for conservation become more attractive reaching 24.8 - 26.8 US$/tCO2e compared to others. These findings suggest that identifying the clear pricing from ecosystem services could provide useful information for government interventions toward effective conservation of Indonesian peatlands. It can arouse the awareness of protecting natural resources because it can be integrated with many national and international development schemes in Indonesia. This study also proposed guidelines for decision making whether to conserve or to convert peatland with regard to carbon pricing and ecosystem services proposed. Combining carbon pricing and payment for ecosystem services scheme would exhibit potential for supporting long-term conservation of peatlands in Indonesia while also contributing to elimination of national greenhouse gas emissions, thereby fulfilling Indonesia’s NDC to the UNFCCC.
Year2020
Corresponding Series Added EntryAsian Institute of Technology. Thesis ; no. NR-20-03
TypeThesis
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Development and Sustainability (DDS)
Academic Program/FoSNatural Resources Management (NRM)
Chairperson(s)Sasaki, Nophea;
Examination Committee(s)Tsusaka, Takuji W.;Thi Phuoc Lai Nguyen;
Scholarship Donor(s)Kurita Water and Environment Foundation, Japan;
DegreeThesis (M. Sc.) - Asian Institute of Technology, 2020


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