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Averting Behavior Among Singaporeans During Indonesian Forest Fires

Author

Listed:
  • Tamara L. Sheldon

    (University of South Carolina)

  • Chandini Sankaran

    (Boston College)

Abstract

We estimate averting behavior in the form of increased electricity usage in Singapore during the haze caused by Indonesian forest fires. Our results indicate that increases in fire radiative power in Indonesia result in statistically significant increases in one- and two-day ahead electricity demand. Further results show that the Indonesian fires accounted for 0.5% of Singaporean electricity demand between February 2012 and August 2017 at a total cost of over $270 million. In addition, we find that the residential electricity share increases and the industrial share decreases during fire episodes, suggesting the increase in demand may be due to Singaporeans staying home and/or increasing their air conditioning use during these times. This averting behavior is persistent, not diminishing, during periods of frequent poor air quality.

Suggested Citation

  • Tamara L. Sheldon & Chandini Sankaran, 2019. "Averting Behavior Among Singaporeans During Indonesian Forest Fires," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(1), pages 159-180, September.
  • Handle: RePEc:kap:enreec:v:74:y:2019:i:1:d:10.1007_s10640-018-00313-8
    DOI: 10.1007/s10640-018-00313-8
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    References listed on IDEAS

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    1. Mansfield, Carol & Reed Johnson, F. & Van Houtven, George, 2006. "The missing piece: Valuing averting behavior for children's ozone exposures," Resource and Energy Economics, Elsevier, vol. 28(3), pages 215-228, August.
    2. Tamara L. Sheldon & Chandini Sankaran, 2017. "The Impact of Indonesian Forest Fires on Singaporean Pollution and Health," American Economic Review, American Economic Association, vol. 107(5), pages 526-529, May.
    3. Matthew Neidell, 2009. "Information, Avoidance Behavior, and Health: The Effect of Ozone on Asthma Hospitalizations," Journal of Human Resources, University of Wisconsin Press, vol. 44(2).
    4. Narayan Sastry, 2002. "Forest fires, air pollution, and mortality in Southeast Asia," Demography, Springer;Population Association of America (PAA), vol. 39(1), pages 1-23, February.
    5. Graff Zivin, Joshua & Neidell, Matthew, 2009. "Days of haze: Environmental information disclosure and intertemporal avoidance behavior," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 119-128, September.
    6. Luca Tacconi & Frank Jotzo & R. Grafton, 2008. "Local causes, regional co-operation and global financing for environmental problems: the case of Southeast Asian Haze pollution," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 8(1), pages 1-16, March.
    7. Enrico Moretti & Matthew Neidell, 2011. "Pollution, Health, and Avoidance Behavior: Evidence from the Ports of Los Angeles," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 154-175.
    8. Quah, Euston, 2002. "Transboundary Pollution in Southeast Asia: The Indonesian Fires," World Development, Elsevier, vol. 30(3), pages 429-441, March.
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    Cited by:

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    2. Lu, Pei-Jyun, and Mark Skidmore, 2024. "Tropical Cyclone Day-off Orders, Warnings, and Avoidance Behavior," The Review of Regional Studies, Southern Regional Science Association, vol. 54(3), pages 259-282.

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    More about this item

    Keywords

    Air pollution; Health; Avoidance behavior; Externalities; Forestry;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I1 - Health, Education, and Welfare - - Health
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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