PERANAN INSTRUMEN EKONOMI DALAM MENGURANGI EMISI GAS CO2 “SUATU PERSPEKTIF UNTUK INDONESIA”

Abstract

Indonesia still using common and control (CAC) instruments in controlling environmental problems. Law No 23 year 1997 and decree of the minister and others regulations related to the law were established based on top-down policy approach. Environmental problems in most cases are effective to be controlled using common and control policy, however in issues of pollution or emission control, economic instrument or market based instrument is effective compare to the CAC. Another reason is flexibility of the instrument. This empirical study is intended to analyze how an instrument economy is useful in controlling CO2 emission. DICE model (Dynamic Integrated and Climate Change Economic ) or sometime called Three–Box model system is one of economic models which is used for controlling CO2 emission in response to potential threat of global warming. Emission of CO2 from fossil fuel is taxed through optimation of the model. Emission control rate is policy variable. Model system equations are solved using General Algebraic Modeling System (GAMS). Optimum scenario is occurred where value of rate of social preference 5%. Model outcome suggest that abatement cost having range between 0.1-6.7% of GDP and reduction of emission in range of 20 - 80% of current emission rate for the period of 1990-2019. In optimal condition, model suggest that appropriate emission tax for fossil fuel having range of 0.002 – 0.024 USD per liter or equivalent to 3.90-40.35 USD carbon tax per ton of fossil fuel coal having range 1,95 -20,25 USD per ton CO2.