Title
Environmental costs assessment for improved environmental-economic account for Indonesia
Author
Pirmana, V.
Alisjahbana, A.S.
Yusuf, A.A.
Hoekstra, R.
Tukker, A.
Publication year
2021
Abstract
he overall purpose of this study is to assess priorities for new environmental accounts in Indonesia. Weuse environmental costs related to air pollution and resource extraction in Indonesia as a measure forpriority. This study uses the damage costs approach to estimate the environmental degradation costsvalue and the Net Present Value (NPV) approach to obtain the environmental cost of natural resourcesdepletion of several natural resources that are most important for the Indonesian economy. Our estimateof the total environmental costs amounts to around 13% of GDP in 2010. Environmental costs are mostlydue to depletion of energy and mineral resources, followed by environmental degradation cost from airpollution, and the use of forestry resources and related depletion of ecosystems. The Indonesian CentralBureau of Statistics (BPS) has already published damage costs data related to resource depletion, whichwefind is a priority. However, the BPS should consider completing its data with additional informationon the depletion costs of ecosystem services related to forestry. Moreover, the BPS could expand Indo-nesia’s economic-environmental accounts by including environmental degradation costs due to airpollution. We found that from a substance perspective, the priorities are SOx, NOx, CO2,CH4, and par-ticulate matter. At the same time, from a sector perspective, the priorities are electricity, manufacture ofbasic iron and steel and of ferro-alloys andfirst products thereof, mining of coal and lignite, andextraction of peat, because if the national accounts included the external costs of air pollution and thedepletion of natural resources, these sectors would create a negative value-added.©2020 The Author(s). Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND
Subject
Environmental cost
Environmental degradation cost
Ecosystem services
Natural resources depletion
To reference this document use:
http://resolver.tudelft.nl/uuid:f2c50957-792c-418b-b396-f88d6aea12e2
TNO identifier
946574
Publisher
Elsevier Ltd
ISSN
0959-6526
Source
Journal of Cleaner Production, 280 (280)
Document type
article