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Fires in Indonesia: Causes, Costs and Policy Implications

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According to this book, fires are considered a potential threat to sustainable development because of their direct impacts on ecosystems, their contribution to carbon emissions and impacts on biodiversity. The estimate of area affected by fires in Indonesia in 1997/1998 is revised from 9.7 million hectares to 11.7 million hectares. The fires that resulted in forest degradation and deforestation had economic costs in the range of $1.62-2.7 billion. The valuation of costs associated with carbon emissions indicates that these may amount to as much as $2.8 billion. Detailed policy recommendations are presented.