Colin Hunt

The costs of reducing deforestation in Indonesia

Abstract In this second contribution to the Policy Dialogue, Colin Hunt emphasises the large contribution that oil palm plantations and the pulp and paper industry have been making to Indonesias economic growth in recent years, notwithstanding the environmental consequences of such activities. The implication is that avoided deforestation can be expected to have a significant negative impact on segments of the population who would benefit from the business and employment opportunities that would otherwise be generated, directly or indirectly. Palm oil companies typically spend about three dollars on goods, services and labour for every dollar of profit. The author argues that any compensation package for avoided deforestation needs to include all the potential beneficiaries of palm oil production, not just the palm oil companies, and to generate economic activity similar to that being replaced. (Ed.)

Economic globalisation impacts on Pacific marine resources

The article analyses trade and investment effects on Pacific island marine resources. Increasing fishing effort and new technology appears to be depleting a major tuna species. There are also repercussions of globalisation on the sustainability of vital inshore marine resources. If the incidence of El Nino events increases as a result of global warming then the national economies of some small island states will be impacted. In the long-term an ocean level rise will put small island and low atoll nations at risk. The article concludes by suggesting roles for aid in mitigating globalisation impacts.

Australia's greenhouse policy

Even though climate change effects and costs are uncertain, Australia has accepted that action is warranted in moving towards a global solution. In doing so the Australian government has chosen a range of ‘no regrets’ policy measures to reduce greenhouse gas (GHG) emissions to below its 2008–12 Kyoto target. However, a decrease in land clearing since 1990 rather than reductions in emissions from the energy, transport and industry sectors, is mainly responsible for Australia performing near to its target trend. In this article, it is argued that, in the future, the raft of inefficient taxpayer-burdensome greenhouse measures will need to be replaced by an economy-wide tax or a permit-trading scheme that would put a price on emissions. The result would be an economy less emission-intense, achieved at the lowest possible cost. At the same time ratification of the Kyoto protocol would enable the Australian government to eventually trade permits internationally and thus further reduce the costs of meeting future GHG targets.

Management of the South Pacific tuna fishery

South Pacific tuna is worth some

Property rights and environmental management on Pacific atolls

US1.5 billion and the economic future of many Pacific islands is dependent upon the conservation of the regions tuna stocks. The entry into force of UNCLOS in 1994 and the Implementing Agreement of 1995 have focussed attention on the management of South Pacific tuna, as have regional economic trends. However, the deficiencies apparent in fisheries management systems elsewhere are likely to be exacerbated in the South Pacific. The article suggests that a practical alternative to the direct control of tuna catches, while other methods are being researched, is area closures. This system is already in place in some island countries and requires only limited financial resources to implement.

Prospects for meeting Australia's 2020 carbon targets, given a growing economy, uncertain international carbon markets and the slow emergence of renewable energies

Argues that the serious environmental degradation occurring in two “low island” Pacific states, Kiribati and Tuvalu, can be directly attributed to the lack of allocation of rights of access to, or the lack of exclusion of non rights‐holders from, common property resources. A recommendation, resulting from research in the countries concerned, is that the governments must enforce their rights over lands and underground water, if these resources are to continue to provide benefits to the community and if disease incidence in the population (an outcome of open access to public resources) is to be reduced. For the management of inshore fisheries resources, it is suggested that rights of Island Councils are confirmed and reinforced by central government. In the case of the nations’ ocean resources, co‐operation between Pacific island states is required to manage access and exploitation by foreign vessels.

Carbon Sinks and Climate Change

The carbon emissions of Australia’s future energy consumption are compared with the emissions targets implied by the cuts in carbon emissions committed to by the Australian government for 2020 and 2050. Analysis shows that even the seemingly modest cut of 5% of carbon emissions by 2020 cannot be met without substantial contributions by low carbon sources that are in addition to the contribution of 20% of electricity supply mandated by the government. The choices in renewable energy are constrained by the need for base-load power to constitute a large proportion of energy supply but the short lead time to 2020 precludes sources that require more development or lengthy planning processes. The official forecasts of energy generation assume a large proportion of Australia’s emissions will be offset through international emission trading. However the prospects for the development of international carbon market are presently poor. The conclusion is that, even with a domestic price on carbon, the Australian government’s 2020 targets for carbon emission reductions are unlikely to be met and should be revised downwards.

Revenue Implications of Export Tax Denomination in Developing Countries: The Case of Forestry in Papua New Guinea

Reforestation and avoiding deforestation are methods of harnessing nature to tackle global warming - the greatest challenge facing humankind. In this book, Colin Hunt deals comprehensively with the present and future role of forests in climate change policy and practice. The author provides signposts for the way ahead in climate change policy and offers practical examples of forestrys role in climate change mitigation in both developed and tropical developing countries. Chapters on measuring carbon in plantations, their biodiversity benefits and potential for biofuel production complement the analysis. He also discusses the potential for forestry in climate change policy in the United States and other countries where policies to limit greenhouse gas emissions have been foreshadowed.

For the Sake of a Credible Climate Change Policy in Australia - Revisiting the Nuclear Energy Option

The denomination of the resource export tax – in US dollars or local currency – has implications for the efficiency of a tax system (in terms of achieving a social equilibrium), the distribution of resource rents between government and private harvesters, and the government’s revenue base. These issues are important where industrial logging is undertaken and where substantial tax revenues are generated from the export of logs. The currency denomination of the export tax system determines the effect on revenue of a change in the US dollar price for timber. Moreover, the denomination – a policy choice – either exacerbates or ameliorates the combined revenue effects of market price change and currency movement. A Papua New Guinea case study illustrates how the denomination if log export tax in local currency ameliorated the effects of the Asian financial crisis on government revenues.

Greenhouse Gas Abatement in Asia: Imperatives, Incentives and Equity

This article models the impact on the costs of introducing nuclear power into Australia’s energy mix. Energy from nuclear plants progressively replaces that from coal and a proportion of energy from gas by 2050. Cost savings are found to be substantial by reducing the need to purchase overseas abatement and by reducing carbon taxes. The analysis is presented in the belief that sound policy-making requires that all energy options should be on the table, notwithstanding the fact that there are many other considerations, apart from cost, in the adoption of nuclear energy in Australia.