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REDD+ Projects and Their Impact on Household Incomes in Indonesian Borneo

REDD+ Projects and Their Impact on Household Incomes in Indonesian Borneo
In Indonesia, early Reducing Emissions from Deforestation and Forest Degradation (REDD+) projects, established in the early 2010s, were required to self-fund through carbon credit sales or donor aid while supporting local livelihoods. This paper examines the impact of REDD+ projects on both agricultural and overall household incomes (i.e., from all economic activities, including agriculture). We hypothesize that the agricultural incomes of REDD+ participating households (or treated households) would decrease as REDD+ forbids forest clearance, but this loss would be offset by a subsequent rise in overall household income as REDD+ encourages income diversification. Additionally, we assess whether REDD+ implementation has an intra-community 'spillover' effect by comparing the incomes of households living in REDD+ villages but abstaining from participation, with those in non-REDD+ (control) villages. We evaluate two such projects in Indonesian Borneo (Kalimantan) using panel survey data from over 400 households, collected in 2010, 2014, and 2018. Our analysis employs panel difference-in-differences in matched samples. Overall, our results reveal a small, heterogeneous impact of REDD+ on household incomes. While we found no significant impact in East Kalimantan’s BFCP site, participation in Central Kalimantan’s KMP site led to a reduced agricultural income over the short term (2010-2014). However, we detected no improvement in overall household income, nor did we find this impact to be long-lasting. We also found no conclusive evidence of intra-community spillover effects. The short-term income shock observed at the KMP site, despite its small overall magnitude, indicates the need for strategies to support and safeguard household incomes against temporary disruptions associated with REDD+ implementation. Our research contributes to the broader discourse on REDD+ performance, echoing previous findings of its mixed and modest impact on local communities' incomes globally.

This work is licensed under CC-BY 4.0
DOI:
https://doi.org/10.24259/fs.v9i2.44699
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TI  - REDD+ Projects and Their Impact on Household Incomes in Indonesian Borneo 
AU  - Nofyanza, S. 
AU  - Avia, Z. 
AU  - Chervier, C. 
AU  - Maulana, A.M. 
AB  - In Indonesia, early Reducing Emissions from Deforestation and Forest Degradation (REDD+) projects, established in the early 2010s, were required to self-fund through carbon credit sales or donor aid while supporting local livelihoods. This paper examines the impact of REDD+ projects on both agricultural and overall household incomes (i.e., from all economic activities, including agriculture). We hypothesize that the agricultural incomes of REDD+ participating households (or treated households) would decrease as REDD+ forbids forest clearance, but this loss would be offset by a subsequent rise in overall household income as REDD+ encourages income diversification. Additionally, we assess whether REDD+ implementation has an intra-community 'spillover' effect by comparing the incomes of households living in REDD+ villages but abstaining from participation, with those in non-REDD+ (control) villages. We evaluate two such projects in Indonesian Borneo (Kalimantan) using panel survey data from over 400 households, collected in 2010, 2014, and 2018. Our analysis employs panel difference-in-differences in matched samples. Overall, our results reveal a small, heterogeneous impact of REDD+ on household incomes. While we found no significant impact in East Kalimantan’s BFCP site, participation in Central Kalimantan’s KMP site led to a reduced agricultural income over the short term (2010-2014). However, we detected no improvement in overall household income, nor did we find this impact to be long-lasting. We also found no conclusive evidence of intra-community spillover effects. The short-term income shock observed at the KMP site, despite its small overall magnitude, indicates the need for strategies to support and safeguard household incomes against temporary disruptions associated with REDD+ implementation. Our research contributes to the broader discourse on REDD+ performance, echoing previous findings of its mixed and modest impact on local communities' incomes globally. 
PY  - 2025 
UR  - https://www.cifor-icraf.org/knowledge/publication/45764/ 
DO  - https://doi.org/10.24259/fs.v9i2.44699 
KW  - agricultural production, carbon credits, community involvement, deforestation, environmental policies, forest conservation, household income, impact assessment, livelihoods, local communities, participation, redd-plus 
ER  -
%T REDD+ Projects and Their Impact on Household Incomes in Indonesian Borneo 
%A Nofyanza, S. 
%A Avia, Z. 
%A Chervier, C. 
%A Maulana, A.M. 
%D 2025 
%U https://www.cifor-icraf.org/knowledge/publication/45764/ 
%R https://doi.org/10.24259/fs.v9i2.44699 
%X In Indonesia, early Reducing Emissions from Deforestation and Forest Degradation (REDD+) projects, established in the early 2010s, were required to self-fund through carbon credit sales or donor aid while supporting local livelihoods. This paper examines the impact of REDD+ projects on both agricultural and overall household incomes (i.e., from all economic activities, including agriculture). We hypothesize that the agricultural incomes of REDD+ participating households (or treated households) would decrease as REDD+ forbids forest clearance, but this loss would be offset by a subsequent rise in overall household income as REDD+ encourages income diversification. Additionally, we assess whether REDD+ implementation has an intra-community 'spillover' effect by comparing the incomes of households living in REDD+ villages but abstaining from participation, with those in non-REDD+ (control) villages. We evaluate two such projects in Indonesian Borneo (Kalimantan) using panel survey data from over 400 households, collected in 2010, 2014, and 2018. Our analysis employs panel difference-in-differences in matched samples. Overall, our results reveal a small, heterogeneous impact of REDD+ on household incomes. While we found no significant impact in East Kalimantan’s BFCP site, participation in Central Kalimantan’s KMP site led to a reduced agricultural income over the short term (2010-2014). However, we detected no improvement in overall household income, nor did we find this impact to be long-lasting. We also found no conclusive evidence of intra-community spillover effects. The short-term income shock observed at the KMP site, despite its small overall magnitude, indicates the need for strategies to support and safeguard household incomes against temporary disruptions associated with REDD+ implementation. Our research contributes to the broader discourse on REDD+ performance, echoing previous findings of its mixed and modest impact on local communities' incomes globally. 
%K agricultural production 
%K carbon credits 
%K community involvement 
%K deforestation 
%K environmental policies 
%K forest conservation 
%K household income 
%K impact assessment 
%K livelihoods 
%K local communities 
%K participation 
%K redd-plus 
    Année de publication

    2025

    ISSN

    2549-4724

    Auteurs

    Nofyanza, S.; Avia, Z.; Chervier, C.; Maulana, A.M.

    Langue

    English

    Mots clés

    agricultural production, carbon credits, community involvement, deforestation, environmental policies, forest conservation, household income, impact assessment, livelihoods, local communities, participation, redd-plus

    Source

    Forest and Society. 9(2): 44699

    Géographique

    Indonesia