MANAJEMEN HUTAN TROPIKA Journal of Tropical Forest Management
Vol. 19 No. 2 (2013)

Double Dividend from Tariff Differentiation of Reforestation Fund

Sudarsono Soedomo (Department of Forest Management, Faculty of Forestry, Bogor Agricultural University, IPB Darmaga Campus, PO Box 168, Bogor 16680, Indonesia)



Article Info

Publish Date
26 Aug 2013

Abstract

Distortionary levy applied uniformly to all diameter classes of logs from logging natural forest can lead to inefficiencies; certain diameter should be left in the field because it is not economical to be used. Win-win or Pareto improving solution can be achieved if the government is more flexible. Social welfare is higher because of the waste that can be utilized to create employment, production and additional benefits for employers, as well as revenue for the state. Even if the levy rates are forced to zero for small-diameter timber, governments is actually not harmed at all because from the beginning the government does not get any revenue from small timber that is left in the field as waste. In scarcity situations of timber from natural forests, it is desirable if the government is considering differentiating charges in order to reduce or possibly eliminate the volume of waste generated by the levy. In general, tariff differentiation done in the form of higher tariffs for higher diameter logs. If possible, the lowest diameter limit of logs is forced down to its technical limits. That is, the processing tool that will determine how the minimum diameter logs can be processed profitably.Keywords: tariff differentiation, efficiency, timber utilization, government revenue, win-win solutionDOI: 10.7226/jtfm.19.2.163

Copyrights © 2013






Journal Info

Abbrev

jmht

Publisher

Subject

Agriculture, Biological Sciences & Forestry

Description

Jurnal Manajemen Hutan Tropika is a periodic scientific articles and conceptual thinking of tropical forest management covering all aspects of forest planning, forest policy, utilization of forest resources, forest ergonomics, forest ecology, forest inventory, silviculture, and management of ...