The Study of Financial Innovation to Sustainably Increase Income of Rubber Farmers

Abstract

This research is qualitative. Gather information from document review in-depth interviews and brainstorming opinions from relevant stakeholder groups. The objectives are as follows: (1) To study the guidelines and feasibility of managing carbon credits according to the voluntary sector in rubber plantation areas of Thailand; (2) To study appropriate mechanisms and operating models for leading to generating income in carbon credits in the rubber agriculture sector; (3) To study processes to develop stakeholder cooperation towards carbon credit management by analyzing data through the SWOT and TOWS Matrix analysis frameworks. It emphasizes the development of the Voluntary Carbon Market, a mechanism for reducing greenhouse gas emissions and creating additional income for farmers through carbon credits selling. The research findings show that rubber plantations have the potential to sequester carbon dioxide and can also add value to rubber plantations in Thailand through the development of a carbon credit trading system. The study has designed four business model approaches for carbon credit development by government agencies: (1) In the case where the government agency acts as an intermediary for carbon credit trading. (2) In the case where the government agency collects areas and provides support. (3) In the case where the government agency collects areas and provides support so that companies registered with government agencies can invest in carbon credits. (4) In the case where the government agency and investors jointly invest in carbon credits. The results from the focus group still emphasize the importance of the government agency in driving carbon credit operations as the main body, especially in the rubber plantation sector. The Rubber Authority of Thailand (RAOT) should play a key role in coordinating and driving the project to make it a reality, so that all sectors can fully benefit from it.