Valuation Analysis of Economic Losses in Forest and Land Fires Using Carbon Tax and Ecosystem Service Valuation Calculation Methods Edelweiss Ulima Ardianti (a*), Putri Setiani (a), Akhmad Adi Sulianto (a)
(a) Environmental Engineering Program, Department of Biosystem Engineering, Faculty of Agricultural Engineering, Brawijaya University
Jalan Veteran, Kota Malang, Indonesia
*edelardianti[at]student.ub.ac.id
Abstract
Forest fires in Indonesia are a significant environmental issue, causing carbon emissions and environmental function loss. Calculating the fiscal impact involves methods like a carbon tax for emission-related losses and Ecosystem Service Valuation (ESV) for environmental function damages. In 2019, fire on Mount Arjuno covering 35.06 km2 area released 89,880.8 tCO2, resulting in a fiscal loss of IDR 28,754,875,800 for carbon tax. ESV calculations, using Permen LHK no.7 of 2014, estimate losses of IDR 197,012,090,000 due to damaged environmental services. The total recovery cost, considering reforestation and compost addition, is IDR 738,495,558,333. Overall, the economic loss from the Mount Arjuno fires in 2019 reaches IDR 964,262,524,133. This study underscores the need to raise awareness about the severe economic and ecological consequences of these fires.
Keywords: Carbon Tax, Economical Loss, Ecosystem Service Valuation, Forest Fire
