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All Journal Journal of Entrepreneurial Economics Kemakmuran Hijau: Jurnal Ekonomi Pembangunan Environment Conflict
Sari, Pepy Hapita
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Economics, Econometrics & Finance Environmental Science Social Sciences

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Transition risk analysis in the mining sector and its implications for environmental conflict: A Case study approach Sari, Pepy Hapita
Environment Conflict Vol. 2 No. 1: (February) 2025
Publisher : Institute for Advanced Science Social, and Sustainable Future

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61511/environc.v2i1.2025.1750

Abstract

Background: Climate change has become a major challenge of the 21st century, driving a global transition toward low-carbon energy to reduce greenhouse gas emissions, with a target of Net Zero Emissions (NZE) by 2050. The mining sector, particularly coal, faces significant transition risks, such as declining coal demand, rising operational costs, and social and environmental impacts due to increasingly stringent emission reduction policies. PT ABC, as a major coal producer in Indonesia, must adapt by shifting to renewable energy, reducing its dependence on coal, and managing transition risks while seizing opportunities for energy diversification. Methods: This study analyzes the transition risks faced by PT ABC, focusing on the impact of global climate policies, fluctuations in international carbon prices, and the shift toward renewable energy on the company’s financial performance. Findings: The analysis shows that the company needs to reduce emissions by approximately 993,478 tons of CO₂eq per year to meet Indonesia’s emission reduction targets in the Enhanced Nationally Determined Contributions (ENDC), with an additional annual cost of around IDR 29.8 billion at a carbon price of IDR 30,000 per ton. If carbon prices increase, costs could reach IDR 140.5 billion or IDR 198.7 billion by 2030. This study identifies four main transition risks: government policy changes, carbon price fluctuations, declining coal demand, and the implementation of a carbon tax. Conclusion: To mitigate financial and operational impacts, PT ABC needs to adopt environmentally friendly technologies, diversify investments in renewable energy, and improve energy efficiency. These risk mitigation efforts are expected to reduce negative impacts and support the company’s operational sustainability amid the global energy transition. Novelty/Originality of this article: By quantifying emission reduction costs and potential carbon price impacts, it offers insights into strategic measures for coal companies adapting to the low-carbon transition.
Economic valuation of agricultural land conversion to oil palm plantations: Assessing economic benefits and environmental impacts Sari, Pepy Hapita; Erpinda, Mia
Kemakmuran Hijau: Jurnal Ekonomi Pembangunan Vol. 2 No. 1: (February) 2025
Publisher : Institute for Advanced Science, Social, and Sustainable Future

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61511/jekop.v2i1.2025.1767

Abstract

Background: The conversion of agricultural land into oil palm plantations has become a pressing issue due to its significant economic and environmental impacts. While oil palm production offers economic benefits, it also contributes to biodiversity loss and the degradation of ecosystem services. This study aims to assess both the economic valuation and the environmental consequences of land conversion in Muaro Jambi Regency, addressing the gap in current research regarding the dual impact of this transformation. Methods: A total economic valuation (TEV) approach was applied, combining direct use value (DUV), indirect use value (IUV), and option value (OV) to quantify the economic impacts. Data collection included secondary data from government reports, industry studies, and previous academic works. Statistical methods were employed to estimate the economic contributions and environmental costs associated with land conversion. Findings: The total economic value of converting agricultural land to oil palm plantations was estimated at IDR 1.097 trillion per year, predominantly driven by the direct use value of palm oil production. The conversion, however, resulted in the loss of vital ecosystem services worth IDR 1.55 billion per year, as well as significant biodiversity and cultural heritage loss, valued at IDR 12.37 billion annually. These findings suggest that while oil palm cultivation provides substantial economic benefits, it also presents serious environmental challenges. Conclusion: The study underscores the importance of balancing economic benefits with environmental sustainability in land conversion decisions. Effective policy interventions, such as Payment for Ecosystem Services (PES), sustainability certifications, and land rehabilitation programs, are essential to mitigate the environmental impacts of oil palm plantations. Novelty/Originality of this article: While previous research has focused on the economic benefits, this study addresses the environmental consequences, such as biodiversity loss and ecosystem service degradation, providing a more comprehensive analysis.
Cost and benefit analysis of waste management at Rawa Kucing landfill with the refuse-derived fuel (RDF) method Sari, Pepy Hapita; Zahra, Nabila Fathia
Journal of Entrepreneurial Economics Vol. 2 No. 1: (February) 2025
Publisher : Institute for Advanced Science, Social, and Sustainable Future

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61511/jane.v2i1.2025.1780

Abstract

Background: This study addresses the complex challenges of waste management at Indonesia's Rawa Kucing landfill, highlighting the need for sustainable solutions such as Refuse- Derived Fuel RDF) to reduce reliance on landfills and address gas emissions. Ineffective waste management, environmental pollution, and limited infrastructure reinforce the urgency for methods that can effectively reduce waste volumes and promote renewable energy. This study aims to evaluate the feasibility of RDF in waste management by assessing the economic, environmental, and health benefits. Methods: Using circular economy theory and cost- benefit analysis (CBA), RDF was assessed for its potential in carbon reduction, renewable energy production, and sustainability. Findings: Findings show significant benefits of the RDF in reducing waste in landfills, improving management efficiency, and providing alternative energy sources. Economic benefits, such as revenue from RDF sales, and environmental benefits in the form of reduced greenhouse gas emissions are particularly important. addition, RDF can reduce health risks by lowering pollution from well-managed waste piles. RDF is proven to be an effective and economically beneficial waste management alternative to conventional methods. Conclusions: This study recommends expanding the adoption of RDF in various landfills in Indonesia as well as increasing public awareness on the benefits of RDF. Novelty/Originality of this Article: This research offers a novel approach by combining circular economy theory with cost-benefit analysis (CBA) to evaluate the multiple benefits of RDF, not only in waste reduction and energy production, but also in improving public health. 
Co-Authors Erpinda, Mia Zahra, Nabila Fathia