Publication: The Cost of Fire: An Economic Analysis of Indonesia’s 2015 Fire Crisis
Loading...
Other Files
24,285 downloads
Date
2016-02
ISSN
Published
2016-02
Editor(s)
Abstract
In a five-month period, man-made fire cost Indonesia $16.1 billion or 2 percent of GDP in 2015. An estimated 2.6 million hectares – an area four times the size of Bali – burned. While the 2015 fires were some of the worst in recent years (in part as a result of el Nino), they are by no means a singular event. Wide-scale fire crises occur annually in Indonesia. Indonesia’s fire story is not just one of loss and damage; fires contribute to significant economic upside for a diverse, if concentrated, group of actors. However, the majority of Indonesians suffer as a result of the economic and physical damage. This document provides a loss and damage analysis of the 2015 fires and explores not just economic costs, but environmental costs as well. It also looks at the important role that fire plays in commodity crops, particularly oil palm, and the actors who benefit.
Link to Data Set
Citation
“Glauber, Ann Jeannette; Moyer, Sarah; Adriani, Magda; Gunawan, Iwan. 2016. The Cost of Fire: An Economic Analysis of Indonesia’s 2015 Fire Crisis. Indonesia Sustainable Landscapes Knowledge Note No. 1. © World Bank. http://hdl.handle.net/10986/23840 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication Convenient Solutions to an Inconvenient Truth : Ecosystem-based Approaches to Climate Change(World Bank, 2010)Global warming and changes in climate have already had observed impacts on natural ecosystems and species. Natural systems such as wetlands, mangroves, coral reefs, cloud forests, and Arctic and high-latitude ecosystems are especially vulnerable to climate-induced disturbances. However, enhanced protection and management of biological resources and habitats can mitigate the impacts and contribute to solutions as nations and communities strive to adapt to climate change. Biodiversity is the foundation and mainstay of agriculture, forests, and fisheries. Biological resources provide the raw materials for livelihoods, agriculture, medicines, trade, tourism, and industry. Forests, grasslands, freshwater, and marine and other natural ecosystems provide a range of services often not recognized in national economic accounts but vital to human welfare: regulation of water flows and water quality, flood control, pollination, decontamination, carbon sequestration, soil conservation, and nutrient and hydrological cycling. Current efforts to address climate change focus mainly on reducing greenhouse gas (GHG) emissions by adopting cleaner energy strategies and on reducing the vulnerability of communities at risk by improving infrastructure to meet new energy and water needs. This book offers a compelling argument for including ecosystem-based approaches to mitigation and adaptation as an essential pillar in national strategies to address climate change. Such ecosystem-based strategies can offer cost-effective, proven, and sustainable solutions that contribute to, and complement, other national and regional adaptation strategies.Publication Convenient Solutions to an Inconvenient Truth : Ecosystem-based Approaches to Climate Change(World Bank, 2009-06-01)The World Bank's mission is to alleviate poverty and support sustainable development. Climate change is a serious environmental challenge that could undermine these goals. Since the industrial revolution, the mean surface temperature of earth has increased an average 2 degree Celsius due to the accumulation of greenhouse gases in the atmosphere. Most of this change has occurred in the past 30 to 40 years, and the rate of increase is accelerating. These rising temperatures will have significant impacts at a global scale and at local and regional levels. While it remains important to reduce greenhouse gas emissions and reverse climate change in the long run, many of the impacts of climate change are already in evidence. As a result, governments, communities, and civil society are increasingly concerned with anticipating the future effects of climate change while searching for strategies to mitigate, and adapt to, its current and future effects. Global warming and changes in climate have already had observed impacts on natural ecosystems and species. Natural systems such as wetlands, mangroves, coral reefs, cloud forests, arctic and high latitude ecosystems are especially vulnerable to climate-induced disturbances. Current efforts to address climate change focus mainly on reducing emissions of greenhouse gases, mainly through cleaner energy strategies, and on attempting to reduce vulnerability of communities at risk by improving infrastructure to meet new energy and water needs. This report attempts to set out a compelling argument for including ecosystem-based approaches to mitigation and adaptation as a third and essential pillar in national strategies to address climate change. The report is targeted at both Bank task teams and country clients. Such ecosystem-based strategies can offer cost-effective, proven and sustainable solutions contributing to, and complementing, other national and regional adaptation strategies.Publication Andean Countries : A Strategy for Forestry, Volume 3. Ecuador(FAO, Rome, 2006-08-31)The World Bank's revised forest policy came into being in 2002 and covers all types of forests. It has the following key objectives: (i) harnessing the potential of forests to reduce poverty in a sustainable manner; (ii) integrating forests effectively into sustainable development; and (iii) protecting vital local and global environmental services and values. The policy enables the bank to fully engage in forestry throughout the developing world, while ensuring that it complies with such safe guard policies such as OP 4.01 (Environmental Assessment), OP 4.04 (Natural Habitats) and OD 4.20 (Indigenous Peoples). On the other hand, the policy provides only a general framework for its lending operations in forestry and cannot take account of the individual socio-economic and environmental needs of regions and sub regions. To carry out the work, experienced local consultants were recruited to prepare country level reports following guidelines provided by the FAO Investment Centre, the aim being to gain a strong local perspective on the main issues and potential for sustainable and equitable growth in the sector. These reports were complimented by reference to an extensive literature base to produce individual country reports and the summary which follows. Given the complexity of forestry in the region, the need to involve large numbers of stakeholders, and the need to accommodate change, the findings of this report should not be regarded as definitive, but rather as a first step to shaping the Bank's interventions in the sector in individual countries over the medium term. It should also be noted that data have been obtained from a variety of sources, and that inconsistencies and gaps were common; they should consequently be regarded as orders of magnitude.Publication Environment Matters at the World Bank, 2009 Annual Review : Banking on Biodiversity(World Bank, 2010)This issue of environment matters celebrates the 2010 international year of biodiversity and describes some of the challenges and opportunities in protecting biodiversity for the benefit of humankind. From the world's highest mountain ranges to the lowland plains, and from the great oceans and coastal wetlands to agricultural landscapes, nations and communities rely on the bounty and services of natural ecosystems. Biological resources and the goods and ecosystem services they provide underpin every aspect of human life and livelihoods, from food and water security to general well-being and spiritual fulfillment. In many countries, it is the poorest of the poor who are most dependent on these benefits. Yet, as the Millennium Ecosystem Assessment showed, biodiversity is under severe threat, as ecosystems are being lost and degraded more rapidly and extensively than at any comparable period in our history. Habitat loss and fragmentation, overexploitation of resources, pollution, invasive alien species, and, increasingly, climate change will all lead to further biodiversity loss. One of the key challenges of the coming decades will be how to reconcile biodiversity conservation and development if we are to achieve the twin goals of poverty alleviation and a sustainable future for all. The World Bank is already a major global funder of biodiversity initiatives, including support to more than 624 projects in over 122 countries during the last 20 years. It is actively supporting national actions to safeguard biodiversity and improve natural resource management. Many of these projects have supported globally important protected areas, but efforts have also been made to mainstream biodiversity conservation in the production landscape. As well as national efforts, the Bank has supported numerous partnerships with international non-governmental organizations (NGOs) to promote global and regional biodiversity initiatives.Publication How Much is the Amazon Worth? The State of Knowledge Concerning the Value of Preserving Amazon Rainforests(World Bank, Washington, DC, 2013-10)This paper surveys the current state of knowledge concerning the value of the Amazon rainforest, including a survey of work to date to quantify changes in economic values when the rainforest cover changes. The focus is on local and regional impacts of forest loss or protection, including both gross values of forest protection and opportunity costs of converting the forest to other uses including agriculture. Important gross value items surveyed are timber and non-timber product extraction from a sustainably maintained rainforest; local values of eco-tourism; biological resources including bio-prospecting; a range of hydrological impacts including watershed protection, hydropower production, and changes in rainfall patterns; and impacts of forest fires and their control. Mapping such values in geographical space is of high value for implementing efficient and effective (Reducing Emissions from Deforestation and Forest Degradation ) programs for protecting the remaining forest. The current data basis for such mapping is found to be quite weak and in need of improvement for all value elements.
Users also downloaded
Showing related downloaded files
Publication Assistive Technologies for Children with Disabilities in Inclusive and Special Schools in Indonesia(World Bank, Washington, DC, 2023-09-25)This empirical study of the Indonesian context aims to rigorously examine availability and usage of AT for children with disabilities. It reviews key challenges and support needed in both inclusive and special schools, focusing on teachers in primary and secondary education in Ministry of Education, Culture, Research and Technology (MoECRT). Key questions included: 1) What is the availability and use of AT for students with disabilities in schools in Indonesia? 2) In what ways can teachers, schools, and local and national stakeholders work together to promote equitable and quality learning through AT for children with disabilities? To answer these questions, this study employed a mixed method to enhance the validity and quality of evidence based analysis of AT for children with disabilities in Indonesia, including a national level teacher survey with over 2,000 teachers who participated voluntarily, focus group discussions with teachers, school principals and policy makers as well as an international review of practices on AT for children with disabilities to address the lack of previous studies in Indonesia.Publication Market Study for Vietnam(World Bank, Washington, DC, 2021-09-28)Vietnam's public and private sector stakeholders are increasingly active in addressing plastics waste. The Vietnam Government has set ambitious national plastics waste management goals to combat the economic and environmental consequences of mismanaged plastics waste nationally. This study uses a plastics value chain approach to evaluate Vietnam’s plastics recycling industry and its role in supporting a circular economy.Publication The New Microfinance Handbook : A Financial Market System Perspective(Washington, DC: World Bank, 2013-02)The new microfinance handbook provides a primer on financial services for the poor. It is written for a wide audience, including practitioners, facilitators, policy makers, regulators, investors, and donors working to improve the financial system, but who are relatively new to the sector. It will also be useful for telecommunication companies and other support service providers, students and academics, and consultants and trainers. Although this book is in part an update of the original handbook, the growth of the sector and the complexity of the financial market system have led to a perspective much broader than the previous 'financial and institutional perspective.' As a result, additional chapters have been added to address issues more relevant than when the original handbook was written. To reflect this complexity, the author invited a number of experts to write many of the new chapters. In addition, given that this book does not go into as much detail as the previous book did, a list of key resources at the end of each chapter provides readers additional information on specific topics. Finally, although the title still uses the term microfinance, the book very much addresses the wider financial ecosystem, moving beyond the traditional meaning of microfinance to inclusive financial systems.Publication Migrating to Opportunity(Washington, DC: World Bank, 2017-10-08)The movement of people in Southeast Asia is an issue of increasing importance. Countries of the Association of Southeast Asian Nations (ASEAN) are now the origin of 8 percent of the world's migrants. These countries host only 4 percent of the world's migrants but intra-regional migration has turned Malaysia, Singapore, and Thailand into regional migration hubs that are home to 6.5 million ASEAN migrants. However, significant international and domestic labor mobility costs limit the ability of workers to change firms, sectors, and geographies in ASEAN. This report takes an innovative approach to estimate the costs for workers to migrate internationally. Singapore and Malaysia have the lowest international labor mobility costs in ASEAN while workers migrating to Myanmar and Vietnam have the highest costs. Singapore and Malaysia's more developed migration systems are a key reason for their lower labor mobility costs. How easily workers can move to take advantage of new opportunities is important in determining how they fare under the increased economic integration planned for ASEAN. To study this question, the report simulates how worker welfare is affected by enhanced trade integration under different scenarios of labor mobility costs. Region-wide, worker welfare would be 14 percent higher if barriers to mobility were reduced for skilled workers, and an additional 29 percent if barriers to mobility were lowered for all workers. Weaknesses in migration systems increase international labor mobility costs, but policy reforms can help. Destination countries should work toward systems that are responsive to economic needs and consistent with domestic policies. Sending countries should balance protections for migrant workers with the needs of economic development.Publication An Overview of Agricultural Pollution in Vietnam(World Bank, Washington, DC, 2017)Vietnamese agriculture has experienced remarkable growth over the past twenty years. Today, however, Vietnamese agriculture is edging toward the limits of a growth model rooted more in the intensification of production systems featuring heavy use of labor, chemicals, and natural resources than in efficiency or value addition gains. Agricultural growth is decelerating and Vietnam’s competitiveness as a provider of bulk, undifferentiated commodities is flagging as the agricultural sector faces rising competition for labor, land, and other resources. The environmental fallout from intensification has also begun to adversely impact productivity and the position of Vietnam’s commodities in international markets. If it is to fulfill its ambitions and remain a motor of economic development, Vietnam’s agriculture will need to start producing More from Less. In this regard, tackling agricultural pollution represents a key challenge for Vietnam. Pollution has started to take a toll on the sector’s own resource base, potentially impacting soil fertility and yields, the effectiveness of chemicals in combating pests and disease, farmer health and productivity, environmental health, and the safety of food. Growing evidence and public concern about pollution have led the Vietnamese government to adopt a new outlook and to take measures to address the problem. The research upon which this summary report is based represents the first attempt to assemble existing evidence on the nature and magnitude of agricultural pollution in Vietnam, looking across the livestock, aquaculture, and crops subsectors. It is also an attempt to shed light on the socioeconomic impacts and drivers of agricultural pollution, including the shortcomings of existing policies and programs to reign in the problem.