research title: “An analysis into the Indonesian wood based industry”
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Abstract (200 words)
keywords( 4-5 words)
references: 20( Vancouver style)
Word count 1800- 2000 words.
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Indonesian Carbon and Wood-based Product Trade
Wood-based products industry is a natural forest industry faded. It dilemma, on the one hand the government is losing revenue as capital construction, but have to face the international issue of global warming. There are two skemainternasional to replace the financing of this development, the Clean Development Mechanism (PDM or the Clean Development Mechanism, CDM) and the Reduction of Emissions from Deforestation and Degradation (REDD, Reducing Emissions from Deforestation and Forest Degradation). Both of these schemes face institutional problems for acceptable forest dwellers. The first year produced a model of simultaneous equations showing weak wood products trade in forest products and services trade carbon sequestration or carbon trading in Indonesia. The results show the potential of Indonesia's carbon market of US $ 19.84 billion. The application of the net proceeds enlarge Pigovian Tax carbon trading, and trading timber forest products "suffer" fell 65.7%. The second year study utilizing the first year of research information to study the institutional aspects of carbon markets and carbon trading potential measure spatially in western Indonesia and research third year in eastern Indonesia. The measurement is based on two schemes, CDM and REDD, show different results in each region.
Keywords: Climate Change, Carbon Trading, Carbon Accounting, Investment Potential territory
Climate change is an issue the world. The sustainability of human life is threatened by the ozone layer is disturbed by greenhouse gas emissions, acid rain, and climate change, which is largely caused by economic incentives. Forests are cleared for the extraction of natural resources (oil, forest products) or for growing industrial crops and pasture. No carbon dioxide is released every time a tree is cut down. According Mudiyarso (1999), the carbon released by 0:33 Gt / year / ha during a conversion and deforestation. Reduced wooded acreage is a measure damage to the environment, since reduced the capacity of forests to life. Tropical forests store carbon by 300 tc per hectare, ocean two gtc per year and 1.5 to 2.5 gtc trees per year. (Totten, WRI, 1999) Carbon trading is a response to the Kyoto Protocol. Signed by 180 countries in December 1997, the Kyoto Protocol requires 38 industrial nations to reduce emissions of greenhouse gases (GHG, greenhouse gases) between 2008 to 2012 to a level 5.2% lower than in 1990. The carbon market was created to facilitate the sale and purchase of the right to release greenhouse gases. industrialized countries are required to reduce emissions can buy the rights to release industry from other countries that do not produce greenhouse gases as much as them. The market for carbon can be formed for the purpose of the Kyoto Protocol collectively reduce GHG release. Size congenital (endowment) Indonesia’s forest resources estimated 109.57 million hectares (FAO, 2000-2006). With a wealth of ni, Indonesia has the potential to fill the opportunity to participate in the global carbon trading. But on the other hand, Indonesia is also rely on forests as a source of revenue through forest extraction and export oriented timber industry.
If Indonesia participated in the global carbon trade, it is necessary to change the proportion of category Indonesia. The proportion of protected areas (protected forests, nature reserves and water) will be even greater, while the conversion of forest areas and smaller production concession. These changes will have implications for the shrinking timber industry, which in turn reduces earnings from the sector. The first year focused on building models that can indicate market linkages timber based products and markets carbon Indonesia. This model can be simulated to measure changes that occur with the application of some scenarios. Expansion of protected areas can be compensated through skemacarbon trading in response to the Kyoto Protocol. To be involved in carbon trading, required precise calculations, how much profit / loss. In the first year of the study, indicated that the wood-based forest products trade Indonesia is interchanged with carbon trading. With the issue of global warming are getting stronger, there is a great tendency to reduce trading activity of wood-based products. In the Government Regulation No. 34 of 2002, stated that all gazetted forests for the convening of the carbon trading business (Article 20.3d and 27.2d article). Carbon trading is a business of providing services or sequestration and carbon storage in forests, including maintaining and rehabilitating the forest ecosystem. Carbon trading business can be done in all the functions of forests, state forests and forests both hak.Usaha carbon trading can be done between the Government and Industrial emitters of carbon, in the form of eight investment projects and increase the absorption capacity or carbon storage, prevention of carbon emissions from forests and the compensation for the loss of other benefits from forests owned. In the second year the study obtained information existing state and community perceptions of forests and mitigation schemes that can compensate for some loss of wood-based business opportunity. In this second study obtained the formula to calculate the potential carbon trading region. Formulation inimengadopsi enterprise value measurement model of managerial economics. By utilizing such formulation can be calculated the potential of land selected by the two schemes, namely the clean development mechanism (clean development mechanism, CDM) and the reduced emissions from deforestation and forest degradation (reducing emission of deforestation and degradation, REDD). The results of calculations for six different regions shows the importance of disaggregation for the scale of Indonesia.
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