Optimal Land-use with Carbon Payments and Fertilizer Subsidies in Indonesia

Abstract

Agroforests are often recommended as alternatives to the shifting-cultivation and continuous-cropping systems that are blamed for much of the land degradation in Southeast Asia (Roshetko et al., 2007; Makundi and Sathaye, 2004). But, landholders may not consider tree-based systems as viable alternatives to crops because of high establishment costs, delayed revenues and lack of secure property rights. Recognizing the environmental and social services provided by trees, such as mitigating climate change by sequestering carbon, may assist in overcoming these obstacles.