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Balancing economic development with international commitments to protect biodiversity is a global challenge. Achieving this balance requires an understanding of the possible consequences of alternative future scenarios for a range of stakeholders. We employ an integrated economic and environmental planning approach to evaluate four alternative futures for the mega-diverse island of Borneo. We show what could be achieved if the three national jurisdictions of Borneo coordinate efforts to achieve their public policy targets and allow a partial reallocation of planned land uses. We reveal the potential for Borneo to simultaneously retain ∼50% of its land as forests, protect adequate habitat for the Bornean orangutan (Pongo pygmaeus) and Bornean elephant (Elephas maximus borneensis), and achieve an opportunity cost saving of over US$43 billion. Such coordination would depend on enhanced information sharing and reforms to land-use planning, which could be supported by the increasingly international nature of economies and conservation efforts.

Indonesia faces an energy trilemma on the energy security, climate change goals and energy poverty fronts. Policies that focus exclusively on one prong of the trilemma may lead to unacceptable consequences in the others. Conceiving the predicament as a trilemma will encourage a more unified approach to its problem solving. Successful management will require a search for policy complementarities-the likeliest source of which may be the renewable energy sector-that allow the country to move forward on all three fronts. A reform of its bureaucracy to address implementation gaps in its energy policy will also be needed. The reduction in transaction costs associated with the implementation of Indonesia's energy policy could be used as a broad criterion when considering these necessary changes.

thank Stephen Howes for his comments. Salim Mazouz was involved in earlier joint work with Frank Jotzo from which underlying ideas in the section on providing local incentives emerged.

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