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All Journal JURNAL TEKNOLOGI LINGKUNGAN Scientific Contributions Oil and Gas
Kemas Fachruddin
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Chemical Engineering, Chemistry & Bioengineering Energy Environmental Science

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PERANAN INSTRUMEN EKONOMI DALAM MENGURANGI EMISI GAS CO2 “SUATU PERSPEKTIF UNTUK INDONESIA” Fachruddin, Kemas
Jurnal Teknologi Lingkungan Vol. 8 No. 2 (2007): JURNAL TEKNOLOGI LINGKUNGAN
Publisher : Center for Environmental Technology - Agency for Assessment and Application of Technology

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (82.281 KB) | DOI: 10.29122/jtl.v8i2.412

Abstract

Indonesia still using common and control (CAC) instruments in controllingenvironmental problems. Law No 23 year 1997 and decree of the ministerand others regulations related to the law were established based ontop-down policy approach. Environmental problems in most cases areeffective to be controlled using common and control policy, however inissues of pollution or emission control, economic instrument or marketbased instrument is effective compare to the CAC. Another reason isflexibility of the instrument. This empirical study is intended to analyzehow an instrument economy is useful in controlling CO2 emission. DICEmodel (Dynamic Integrated and Climate Change Economic ) or sometimecalled Three–Box model system is one of economic models which isused for controlling CO2 emission in response to potential threat ofglobal warming. Emission of CO2 from fossil fuel is taxed throughoptimation of the model. Emission control rate is policy variable. Modelsystem equations are solved using General Algebraic Modeling System(GAMS). Optimum scenario is occurred where value of rate of socialpreference 5%. Model outcome suggest that abatement cost havingrange between 0.1-6.7% of GDP and reduction of emission in range of20 - 80% of current emission rate for the period of 1990-2019. In optimalcondition, model suggest that appropriate emission tax for fossil fuelhaving range of 0.002 – 0.024 USD per liter or equivalent to 3.90-40.35USD carbon tax per ton of fossil fuel coal having range 1,95 -20,25USD per ton CO2.
PERANAN INSTRUMEN EKONOMI DALAM MENGURANGI EMISI GAS CO2 “SUATU PERSPEKTIF UNTUK INDONESIA” Kemas Fachruddin
Jurnal Teknologi Lingkungan Vol. 8 No. 2 (2007): JURNAL TEKNOLOGI LINGKUNGAN
Publisher : Center for Environmental Technology - Agency for Assessment and Application of Technology

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (82.281 KB) | DOI: 10.29122/jtl.v8i2.412

Abstract

Indonesia still using common and control (CAC) instruments in controllingenvironmental problems. Law No 23 year 1997 and decree of the ministerand others regulations related to the law were established based ontop-down policy approach. Environmental problems in most cases areeffective to be controlled using common and control policy, however inissues of pollution or emission control, economic instrument or marketbased instrument is effective compare to the CAC. Another reason isflexibility of the instrument. This empirical study is intended to analyzehow an instrument economy is useful in controlling CO2 emission. DICEmodel (Dynamic Integrated and Climate Change Economic ) or sometimecalled Three–Box model system is one of economic models which isused for controlling CO2 emission in response to potential threat ofglobal warming. Emission of CO2 from fossil fuel is taxed throughoptimation of the model. Emission control rate is policy variable. Modelsystem equations are solved using General Algebraic Modeling System(GAMS). Optimum scenario is occurred where value of rate of socialpreference 5%. Model outcome suggest that abatement cost havingrange between 0.1-6.7% of GDP and reduction of emission in range of20 - 80% of current emission rate for the period of 1990-2019. In optimalcondition, model suggest that appropriate emission tax for fossil fuelhaving range of 0.002 – 0.024 USD per liter or equivalent to 3.90-40.35USD carbon tax per ton of fossil fuel coal having range 1,95 -20,25USD per ton CO2.
ROLE OF CO2 GAS EMISSION TAX ON FOSSIL FUEL IN REDUCING ENVIRONMENTAL IMPACT “A PERSPECTIVE FOR INDONESIA” Kemas Fachruddin; Akhmad Fauzi; Ahmad Bey; Surjono H Surtjahjo
Scientific Contributions Oil and Gas Vol 30 No 2 (2007)
Publisher : Testing Center for Oil and Gas LEMIGAS

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29017/SCOG.30.2.982

Abstract

In the year 2001, Indonesia was ranked 21st in producing CO2 emissions. In 1990 thetotal emission of CO2 from the burning of fossil fuel was estimated at 83.8 million tonnesand by the end of the year 2020 the total emissions are estimated to be 368.3 milliontonnes. Currently, Indonesia has no specific regulation in place for controlling CO2 emissionseither in the form of an act or government regulation.Some approaches in controlling such emissions are through “common and control”and or “market based instrument” (sometimes this term is called “economic instrument”).Based on experience from developed countries, economic instrument in the form of carbontax or emission tax is preferred due to it’s effectiveness compared with the commonand control instrument.This empirical study is intended to analyze the role of economic instrument in the formof a carbon or emission tax on the energy of fossil fuel through a modified DICE (DynamicIntegrated Model of Climate Change and the Economy). The DICE model is alsocalled a “Three –Box Model” or “Two Folded Model”By using some rate of social preference (R), the model outcome suggests that appropriateoptimal taxes for petrol and coal are if model using R value of 5%. Value of carbon taxper ton in optimal condition for period of 1990-2019 is within the range $US3.90 – 40.35or $US1.06 -11.00 USD CO2 per ton. The price is equivalent to $US 0.002 – 0.024 perliter petrol and $US 1.95 -20.25 per ton coal.Based on the model output it is indicated that carbon or emission tax with optimalscenario has no significant impact on income per capita relative to “Base Case”. Shouldthe government apply tax instruments with optimal scenario, revenue of emission taxes willfall between $US 457.6 – 2,362.8 million for period 1990-2019. The revenue consists of$US 376.1 – 1,585.6 million generated from petrol and $US 81.4 – 777.2 million fromcoal.
Co-Authors AHMAD BEY Akhmad Fauzi Surjono H Surtjahjo Surjono H.Surtjahjo