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Unintended Effects of Forestry Fiscal Transfers on Deforestation in Indonesia

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Research uncovers the role of forestry fiscal transfers and population size in driving deforestation.

Forestry fiscal transfers significantly contribute to deforestation in Indonesia, indicating an unintended negative impact.
The Forest Revenue-Sharing Fund has a positive correlation (0.65) with deforestation, highlighting a need for policy refinement.
Analysis employed a spatial autoregressive model to assess the impact of various factors on deforestation in Indonesia.
Refining ecological fiscal transfer schemes could enhance alignment with conservation goals, supporting more sustainable practices.

Saragih et al. (2025) studied this question.

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