This study examines the role of economic incentives and social norms in farmers’ fire prevention behaviors using survey and remote sensing data. We focus on Central Kalimantan, Indonesia, where large peatland fires cause environmental and social problems. Our regression results indicate that farmers’ prevention behaviors are positively associated with agricultural economic returns and participation in local community mutual assistance activities. On the contrary, economic returns on non-agricultural activities are negatively associated with prevention behavior. In addition, we find no difference in fire prevention activities between villages participating in the Reducing Emissions from Deforestation and Forest Degradation scheme and non-participating villages. These results suggest that a performance-based incentive is important to improve the effectiveness of policies designed to prevent peatland fires and mitigate the risk of climate change.
Journal of Forest Economics, Volume 35, Issue 2-3 Special issue - Natural capital and ecosystem service: Sustainable forest management and climate change: Articles Overiew
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