Haze-pollution control as infrastructure investment

Singapore

DESPITE political pressures over many years and various enforcement measures, palm oil producers in Indonesia continue to slash and burn to clear land, harassing neighbouring countries with transboundary pollution.

Simple economics may offer a new approach for slash-and-burn agriculture, which if successful might also have relevance for similar environmental encroachments. Farmers and plantations must find it profitable to ditch slash and burn, and those demanding a haze-free life must contribute financing. Benefits and costs must be designed in such a way that no alternative exists making countries better off - creating a win-win situation for everybody taking part.

Palm oil is the world's most competitive vegetable oil with global production more than doubling since 2000 and expected to grow even more as advanced economies favour natural oils over artificial trans fats for health reasons. The palms, native to Africa, were transferred to Malaysia in the 20th century and later to Indonesia. Today, that region produces more than 80 per cent of the …