ABSTRACT

This chapter closely examines one such method of estimating the economic cost of air pollution with case studies to examine its use. Particulate matter is not only found to be widespread, but is also considered to be the most damaging, and measures relating to particulate matter in the air are used to create a useful measure of the economic cost of air pollution. Estimating the economic cost of particulate air pollution on health in a particular city or region involves using the damage function/dose–response approach. This approach measures the effects of premature death (mortality effects) and the effects of health deterioration (morbidity effects) of particulate air pollution. Large-scale forest fires caused mainly by the fires set as part of the slash-and-burn agriculture in Indonesia have occurred since 1960s, choking not only parts of the country but also its neighbouring Singapore and Malaysia.