HYBRID CARBON PRICING FOR INDONESIA'S DECARBONIZATION: A SCOPING REVIEW OF SECTORAL IMPACTS AND POLICY INTEGRATION

Abstract

This scoping review systematically mapped the literature on carbon pricing mechanisms (carbon taxes and emissions trading systems) in Indonesia, focusing on transportation, energy, and housing sectors post-Law No. 7/2021 implementation. Following Arksey and O'Malley's (2005) framework, 42 peer-reviewed sources (2000–2025) were analyzed. Findings reveal that hybrid carbon tax-ETS approaches yield optimal decarbonization while preserving economic resilience through revenue recycling, achieving double dividends via green subsidies. Transportation requires USD 30–50/ton thresholds for EV adoption; energy demands progressive coal phase-out taxation; housing necessitates upstream material levies to avert energy poverty. Compared to Scandinavian and Chinese models, Indonesia's polycentric governance demands sectoral coordination to prevent arbitrage. This study advances environmental economics by proposing differentiated pricing paradigms for archipelagic economies, filling critical gaps in equitable climate policy design and offering policymakers an adaptive roadmap for NZE alignment.