The Economic Value of the June 2013 Haze Impacts on Peninsular Malaysia

by Mohd Shahwahid H.O.

This study investigated the impacts of the 2013 haze on the people and economy of Peninsular Malaysia. The economic cost of the June 2013 haze was estimated to be MYR 1.49 billion (0.48% of the GDP); total cost of illnesses due to haze effects was MYR 78.03 per household (MYR 410.6 million for the whole peninsula) or 27.48% of the total cost; cost of medical treatment and hospitalization, MYR 22.59 per household (MYR 118.9 million); cost of medical-related leaves taken, MYR 38.54 per household (MYR 202.8 million); reduced activity days, MYR 13.17 per household (MYR 69.3 million); purchasing air pollution masks as protection, MYR 3.73 per household (MYR 19.6 million); and loss of income opportunities, MYR 182.05 per household (MYR 958 million), which was 64.11% of the total economic cost. Malaysians appear to have gotten used to the haze and tend to continue with their lives as normal, albeit taking measures to deal with its impacts. The willingness to participate in the insurance scheme to avoid a decline in quality of life due to haze was supported by only 37.5% of those surveyed. Their average willingness to pay was only MYR 23.90 per household (MYR 125.8 million) or 8.42% of the total economic cost of the haze.

  • Publication Year: 2016
  • Country: Malaysia
  • Research Area: Pollution Control
  • Research Topic: Pollution Impacts and Health
  • Analytical Framework: Damage Valuation
Economy and Environment Program for Southeast Asia