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Amid the euphoria of Reducing Emissions from Deforestation and Forest Degradation (REDD) and REDD+ discussions, the expectations of large financial gains raise the interest of all. A country, however, will only enjoy REDD benefits if the cost of REDD is lower than the benefit. The opportunity cost analysis is an effective tool for assessing the feasibility of REDD+ since the largest portion of costs associated with REDD+ and can help to identify fair compensation for those who change their land use. The opportunity cost analysis has been exercised in Tanjung Jabung Barat (Tanjabar) district-Indonesia to examine the economic-feasibility of carbon emission reduction under different type carbon price scenarios. This study reveals a sharp decline of land-use systems with high carbon-stock and low profitability is obvious. On mineral soil, low carbon-stock and high profitability (mostly oil palm) has increased rapidly, especially in the period 2000-2009. It has become the dominant land-use system. The low-to-medium carbon stock and medium profitability land-use category increased from 1990 to 2005 but declined from 2005 to 2009. The low carbon-stock and low profitability category was constant and the proportion of the area was below 15%. The ex-ante analysis in predicting the potential for future emissions reduction in Tanjabar through REDD+ approaches shows that the cumulative emission of Tanjabar in 2020 is estimated at 61.91 Mg CO
The conflict between poverty and the resulting over-exploitation of natural resources on the one hand, and ecological restoration and sustainable development on the other hand, in the southwest China karst region was studied. In this region, the karst forest (a mixed evergreen and deciduous broad-leaved forest) is rapidly degrading due to over-exploitation (sloping farming). We suggest that an Ecological Compensation (EC) model should be established with: financial institutions, local people, and a third part as an intermediate link. The process would continue for 20 years. As a case study we used Bangui town (3800 families) in the upper reaches of Pearl River. The per capita income of residents was used as the benchmark. The compensation would start with 80%, and decrease to 20% over a period of 20 years. Infrastructure investment would decrease from 20% of the total person’s compensation to 5% as the farmers increasingly use alternative income sources. The EC includes compensation for individual, infrastructure, and environmental investments. The total EC for Bangui would be 305,064 × 104 yuan during the 20 years.