This paper studies the political economy of the Southeast Asian haze and discusses the obstacles that, unless overcome, can prevent a permanent and effective solution to the transboundary pollution problem, which originates in Indonesia. Following a cost-benefit analysis of the problem, the paper takes note of the weaknesses in Indonesia's governance structure, which make it difficult to enforce national policies aimed at curbing the haze problem. The paper also puts forward a number of suggestions for strengthening the current policy regime for tackling the problem.
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