Singapore’s willingness to pay for mitigation of transboundary forest-fire haze from Indonesia

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Haze pollution over the past four decades in Southeast Asia is mainly a result of forest and peatland fires in Indonesia. The economic impacts of haze include adverse health effects and disruption to transport and tourism. Previous studies have used a variety of approaches to assess the economic impacts of haze and the forest fires more generally. But no study has used contingent valuation to assess non-market impacts of haze on individuals. Here we apply contingent valuation to estimate impacts of haze on Singapore, one of most severely affected countries. We used a double-bounded dichotomous-choice survey design and the Kaplan-Meier-Turnbull method to infer the distribution of Singaporeans' willingness to pay (WTP) for haze mitigation. Our estimate of mean individual WTP was 0.97% of annual income (n = 390). To calculate total national WTP, we stratified by income, the demographic variable most strongly related to individual WTP. The total WTP estimate was $643.5 million per year (95% CI [$527.7 million, $765.0 million]). This estimate is comparable in magnitude to previously estimated impacts of Indonesia's fires and also to the estimated costs of peatland protection and restoration. We recommend that our results be incorporated into future cost-benefit analyses of the fires and mitigation strategies. © 2017 IOP Publishing Ltd. View source


Secondary Title

Environmental Research Letters


Institute of Physics Publishing








contingent valuation, haze, Indonesian forest fires, peatlands, willingness to pay, Deforestation, Economic analysis, Economic and social effects, Fire hazards, Fires, Resource valuation, Wetlands, Contingent valuations, Forest fires, Peat land, Cost benefit analysis, cost analysis, cost-benefit analysis, economic impact, environmental economics, environmental protection, forest fire, peatland, survey design, transboundary pollution, Indonesia, Singapore [Southeast Asia]

Form: Journal Article
Geographical Area: Singapore, Indonesia

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