Payments for environmental services – Carbon finance options for smallholders’ agroforestry in Indonesia

Christina Seeberg-Elverfeldt; Stefan Schwarze; Manfred Zeller

doi:10.18352/ijc.96

Figures & Tables

Table 1

Characteristics of household classes I–IV.

	I	II	III	IV
Total cultivated land (ha)	2.5	2.8	2.8	2.5
Rice (ha)	0.18	0.18	0.10	0. 13
Maize (ha)	0	0.012	0.012	0.38
Cacao AFS I (ha)	1.49	0.24	0	0
Cacao AFS II (ha)	0.77	1.31	1.09	0.33
Cacao AFS III (ha)	0.25	1.16	1.73	0
Cacao AFS IV (ha)	0.02	0	0	1.72
Family labour days per month	32.4	29.5	34.4	31.6
Credit limit (€/year)	33	720	1,015	570
Ethnicity (% non-indigenous HHs)	0	19	22	80
Poverty status	Poorest	Poor	Poor	Better-off

Table 2

Annuity payments for different prices of CER.

	I	II	III	IV
d 10%, CER €5 tCO₂e^–1	5.54	5.18	5.00	5.09
d 10%, CER €12 tCO₂e^–1	13.30	12.40	12.00	12.20
d 10%, CER €25 tCO₂e^–1	27.70	25.90	25.00	25.50

Table 3

Total gross margins for the household types for different CER price scenarios.

	I	II	III	IV
Baseline	375	1,063	1,331	2,705
Scenario 1 (CER €5)	389	1,076	1,344	2,715
Scenario 2 (CER €12)	408	1,094	1,361	2,729
Scenario 3 (CER €25)	443	1,128	1,393	2,756

Table 4

Scenarios of potential payments for avoided emissions from deforestation reduction.

		Low	Middle	High
Carbon content LLNP	t CO₂e ha⁻¹	326	435	479
Annual emissions avoided (deforestation rate reduced from 0.3% to 0)	t CO₂e ha⁻¹	13	17	19
Payments for different prices per tCO₂e avoided
5 € tCO₂e⁻¹	€ ha⁻¹	49	65	72
12 € tCO₂e⁻¹	€ ha⁻¹	117	157	172
25 € tCO₂e⁻¹	€ ha⁻¹	245	326	359

Activities	Sawah	Padi ladang	Maize	Cacao I	Cacao II	Cacao III	Cacao IV	Cacao I new	Cacao II new	Cacao III new	Cacao IV new	Forest to Cacao I	Forest to Cacao II	Forest to Cacao III	Forest to Cacao IV	Hired Labour	RHS
Objective values (GM 000 IDR/ha)	4.310	1.446	1.188	1.453	4.488	8.696	7.009	1.453	4.478	8.666	6.989	66	87	153	197	–437
Constraints
Land (ha)
January		1	1	1	1	1	1	1	1	1	1	–1	–1	–1	–1		2.74≤2.81
February		1	1	1	1	1	1	1	1	1	1	–1	–1	–1	–1		2.74≤2.81
March	1	1	1	1	1	1	1	1	1	1	1	–1	–1	–1	–1		2.81≤2.81
April	1			1	1	1	1	1	1	1	1	–1	–1	–1	–1		2.58≤2.81
May	1			1	1	1	1	1	1	1	1	–1	–1	–1	–1		2.58≤2.81
June	1			1	1	1	1	1	1	1	1	–1	–1	–1	–1		2.58≤2.81
July	1		1	1	1	1	1	1	1	1	1	–1	–1	–1	–1		2.69≤2.81
August	1	1	1	1	1	1	1	1	1	1	1	–1	–1	–1	–1		2.81≤2.81
September	1	1	1	1	1	1	1	1	1	1	1	–1	–1	–1	–1		2.81≤2.81
October	1	1	1	1	1	1	1	1	1	1	1	–1	–1	–1	–1		2.81≤2.81
November	1	1	1	1	1	1	1	1	1	1	1	–1	–1	–1	–1		2.81≤2.81
December		1	1	1	1	1	1	1	1	1	1	–1	–1	–1	–1		2.74≤2.81
Forest Conversion Cacao I				1				1				–1					0.00≥0.00
Forest Conversion Cacao II					1				1				–1				0.00≥0.00
Forest Conversion Cacao III						1				1				–1			0.77≥0.00
Forest Conversion Cacao IV							1				1				–1		1.74≥0.00
Land restrictions
Minimum sawah production (ha)	1																0.07≥0.07
Minimum padi production (ha)		1															0.11≥0.11
Miminum maize production (ha)			1														0.12≥0.12
Cacao I-restriction				1				1									0.00≥0.24
Cacao II-restriction					1				1								0.06≥0.23
Cacao III-restriction						1				1							0.77≥0.29
Cacao IV-restriction							1				1						1.74=0.00
Deforestation												1	1	1	1		0.06≤0.20
Maximum restriction I				1													0.00≤0.00
Maximum restriction II					1												0.06≤0.06
Maximum restriction III						1											0.77≤0.77
Maximum restriction IV							1										1.74≤1.74
Labour (mandays per month)
January		21.33	16.00	3.50	4.75	9.50	10.45	3.50	5.17	10.75	11.28	1.25	1.67	2.92	3.75	–1	13.74≤29.50
February		24.93	16.00	11.00	4.75	7.50	9.35	11.00	5.17	8.75	10.18	1.25	1.67	2.92	3.75	–1	10.70≤29.50
March	42.68	92.53	40.40	9.12	4.75	14.20	9.35	9.12	5.17	15.45	10.18	1.25	1.67	2.92	3.75	–1	29.50≤29.50
April	1.33			4.50	5.25	14.20	10.45	4.50	5.67	15.45	11.28	1.25	1.67	2.92	3.75	–1	13.18≤29.50
May	9.34			5.40	14.15	7.50	17.95	5.40	14.57	8.75	18.78	1.25	1.67	2.92	3.75	–1	22.12≤29.50
June	14.00			1.84	14.15	9.45	9.35	1.84	14.57	10.70	10.18	1.25	1.67	2.92	3.75	–1	9.03≤29.50
July	42.78		9.60	10.50	11.75	10.40	9.35	10.50	12.17	11.65	10.18	1.25	1.67	2.92	3.75	–1	12.79≤29.50
August	19.01	56.40	23.20	13.40	4.75	7.50	10.20	13.40	5.17	8.75	11.03	1.25	1.67	2.92	3.75	–1	17.97≤29.50
September	11.34	44.87	16.00	3.67	4.75	14.20	9.90	3.67	5.17	15.45	10.73	1.25	1.67	2.92	3.75	–1	19.91≤29.50
October	0.89	45.33	16.00	4.50	4.75	14.20	9.35	4.50	5.17	15.45	10.18	1.25	1.67	2.92	3.75	–1	18.27≤29.50
November	23.56	56.00	16.00	4.00	14.15	7.50	16.85	4.00	14.57	8.75	17.68	1.25	1.67	2.92	3.75	–1	29.50≤29.50
December		10.67	16.00	4.67	9.75	9.93	11.30	4.67	10.17	11.18	12.13	1.25	1.67	2.92	3.75	–1	14.62≤29.50
Capital (miscellaneous costs VC/ha 000IDR)	4.527	345	140	0	1.226	171	311	0	1.236	201	331	30	40	70	90	437	8.296≤8.296
Solution	0.07	0.11	0.12	0.00	0.06	0.77	1.74	0.00	0.00	0.00	0.00	0.00	0.06	0.00	0.00	16.41	2.87 12.578

Sawah=Paddy rice; Padi lading=Upland rice; VC=Variable costs; ha=hectare; RHS=Right-hand-side.