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Haze-pollution control as infrastructure investment

The only way to stop slash-and-burn by farmers is to finance stakeholders' costs of switching land-clearance methods.

The ADB estimated the 1997 costs of haze to be US$9 billion, and that does not include the negative images of deforestation and pollution highlighted by activists and in turn leading to a fall in FDI. Those who resent the pollution must invest US$1.2 billion to avoid the US$9 billion in costs.


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-