Economic Valuation of the Loss of Peatland Fires with the Parameter Calculation of Education and Changes in Air Quality


Authors : Tiara Grace Franzisca L; Dionisius Bryan Sencaky; Robby Arifandi

Volume/Issue : Volume 8 - 2023, Issue 6 - June

Google Scholar : https://bit.ly/3TmGbDi

Scribd : https://tinyurl.com/3hvu89xs

DOI : https://doi.org/10.5281/zenodo.8058507

Abstract : In 2015 there were forest fires covering an area of nearly 3 million hectares in the territory of Indonesia, which occurred not only dry land but also wet land such as peat. South Sumatra Province is the province with the largest burned area, where Ogan Komering Ilir (OKI) Regency is the largest burned area district. Peatland fires are mostly caused by human behavior. With the burning of peatlands, the functions and benefits of peat will be lost. We need to know that the benefits of the peatland ecosystem are numerous for the living things that grow around it as well as ecological benefits. Because of the large benefits of peatland ecosystems for the life of creatures on this earth, it is necessary to have an economic valuation to calculate losses due to damage to peatland ecosystems that are burned. On this occasion we calculated the economic valuation of losses due to peatland fires in Ogan Komering Ilir (OKI) Regency in 2015, due to the loss of the benefits of peat for education and the indirect consequence of peatland fires in the form of micro weather changes around OKI district so that many OKI people suffering from ARI due to inhaling toxic air from smoke. The amount of loss due to the loss of opportunities (Opportunity Cost) for teaching and learning for teachers and students in OKI district in 2015 amounted to Rp. 8,463,763,000 and the replacement cost of going to the puskesmas due to ISPA for OKI residents in 2015 due to peatland fires, amounting to Rp. 3,400,194,000,00. So the total loss is Rp. 11,863,957,000.00 or around 11.8 billion rupiah.

Keywords : Economic Valuation, Peatland Fires, Opportunity Costs of Education, Replacement Costs for Changes in Air Quality.

In 2015 there were forest fires covering an area of nearly 3 million hectares in the territory of Indonesia, which occurred not only dry land but also wet land such as peat. South Sumatra Province is the province with the largest burned area, where Ogan Komering Ilir (OKI) Regency is the largest burned area district. Peatland fires are mostly caused by human behavior. With the burning of peatlands, the functions and benefits of peat will be lost. We need to know that the benefits of the peatland ecosystem are numerous for the living things that grow around it as well as ecological benefits. Because of the large benefits of peatland ecosystems for the life of creatures on this earth, it is necessary to have an economic valuation to calculate losses due to damage to peatland ecosystems that are burned. On this occasion we calculated the economic valuation of losses due to peatland fires in Ogan Komering Ilir (OKI) Regency in 2015, due to the loss of the benefits of peat for education and the indirect consequence of peatland fires in the form of micro weather changes around OKI district so that many OKI people suffering from ARI due to inhaling toxic air from smoke. The amount of loss due to the loss of opportunities (Opportunity Cost) for teaching and learning for teachers and students in OKI district in 2015 amounted to Rp. 8,463,763,000 and the replacement cost of going to the puskesmas due to ISPA for OKI residents in 2015 due to peatland fires, amounting to Rp. 3,400,194,000,00. So the total loss is Rp. 11,863,957,000.00 or around 11.8 billion rupiah.

Keywords : Economic Valuation, Peatland Fires, Opportunity Costs of Education, Replacement Costs for Changes in Air Quality.

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