<![CDATA[instruments that price externalities. This study examines how the carbon tax under Indonesia's Harmonization of Tax Regulations Law, the Carbon Economic Value framework, and the tax architecture of public–private partnerships jointly shape the viability and environmental outcomes of natural-resource-management infrastructure. Secondary data from the outline business cases of two dam-outflow (run-of-dam) mini-hydro projects in North Sulawesi—Lolak (1.50 MW) and Kuwil (2.50 MW)—covering economic-benefit, value-for-money and risk-allocation analyses were reinterpreted through a fiscal lens. Three findings emerged, although the two cases are near-replicates rather than independent observations. First, the statutory minimum carbon-tax rate of IDR 30,000/tCO₂e, a legal floor not yet in force, anchors the carbon shadow price; economic value remained strongly positive at that floor, and the sensitivity results rather than the point estimates are the operative findings. Second, treating taxes as eliminated transfer payments contributes to the wedge between financial and economic feasibility, though unmonetized externalities account for most of it. Third, while risk transfer drives most of the value-for-money gap, tax revenue from the project company is the decisive offset—a fiscal–environmental co-benefit that attaches to private ownership rather than to the partnership scheme as such.]]>
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