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Averting Behavior Among Singaporeans During Indonesian Forest Fires

Author

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  • 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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    Cited by:

    1. Bouwe R. Dijkstra, 2022. "Payments from Households to Distant Polluting Firms," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(3), pages 681-715, July.

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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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