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Sulistiadi Dono Iskandar and Andhika Putra Pratama
Abstract
In 2009, Indonesian ex-President, Susilo Bambang Yudhoyono declared Indonesia's commitment to reduce its Green House Gas (GHG) emissions. The commitment later became legalized in Government Regulation No. 61 2011 (PP 61 of 2011) along with the legal establishment of RAN-GRK (National Action Plan for GHG Emission Reduction) and RAD-GRK (Local Action Plan for GHG Emission Reduction) Program. However, following ?ve years after the implementation of both programs, the effectiveness itself is still in question especially in the case of local government level. This paper aims to evaluate the effectiveness of GHG emission mitigation activities at provincial level from the budget perspective. On top of that, this paper also attempts to investigate the determinant factors of local government's efforts to reduce GHG emissions proxied by the total mitigation expenditure in the particular province. Using Panel data analysis for each province with timespan of 2010–2015, our results suggest that mitigation activities conducted by the local government are significant in reducing the GHG emissions. Our results also show that local government's scale capacity does determine the level of budget dedicated to reducing GHG emissions although with a very low coefficient, suggesting that emission mitigation has not become a priority for the local government in Indonesia.
