As the haze situation worsens as a result of unfavourable Southerly, South-Westerly winds blowing the smoke from the forest fires in Sumatra to Singapore. Although forest fires occur naturally at around this time of the year due to the lack of rain and hot weather, the situation is worsened by farmers who set fire to clear land for farming as it is the cheapest way. However, it might be the most costly way to clear land, if the external costs are taken into consideration. Millions of people in the region are affected by the haze and I suppose flights have either been delayed or cancelled in the past few days due to poor visibility. In addition to that, many people with respiratory and heart ailments might have experienced breathing difficulties or have their existing condition worsened. All these inconvenience caused would definitely have a higher cost than that of clearing the forest using alternative, more environmentally friendly methods. (If such methods actually exist, since the very act of deforestation is harming the environment.)

Internalising the external costs by making farmers pay to clear their land by burning would definitely not work as most of the farmers are poor and will not be able to afford it. Hence, I would suggest that the Indonesian government be stricter in enforcing the law that farmers should not set fire to clear their land. This would deter some farmers from setting the forest alight and help not to worsen the air quality further. The government should even consider helping the poorer farmers to clear their land using bulldozers so that they do not have to set fire to plots of land. The cost incurred though high, can be offset through removing the fuel subsidy. This would serve not only to reduce the number of forest fires but also to reduce fuel consumption which also generates a significant level of air pollution. However, this move might lead to protests as it is politically unpopular to remove subsidies, considering that the reduction in fuel subsidies earlier this year has lead to a fair amount of displeasure amongst the Indonesian. Whatever the government chooses to do, it has to be far-sighted and it has to take immediate action on the problem of air pollution caused by the forest fires and not let the problem remain unsolved as it might worsen the following year. Also, the government should be reminded that the air pollution caused does not just affect Indonesia, but also its neighbouring countries. Surely it does not want the pollution issue to adversely affect its bilateral relationships with neighbouring countries.

As most people fret over the worsening air conditions, producers of air cleaning and purifying devices are smiling as more people purchase their products, resulting in higher earnings. People are more health conscious now as the level of education of the general population is higher than 10 years ago. Hence, more people are buying air cleaning devices so that they are able to breathe cleaner air. The raise in demand for these products caused by the sudden deterioration of air quality might even exceed the supply and cause prices to raise even when output remains constant, resulting in inflation in the price of air purifiers. However, this is unlikely to be a problem since it has been predicted that the haze is expected only to last for another week or so, before the monsoon season starts and hopefully extinguishes the forest fires and clear the air of a significant proportion of pollutants and smoke and dust particles. The demand would then fall back to its original demand and prices would also go in the same direction. The higher profits could be used to invest in research and development to come out with better technology to produce such products cheaper or to make them even more efficient so as to reduce costs and increase demand respectively so that the firm can continue to make high levels of profit.

I shall stop talking about haze and economics. It's really taxing on my brain to think about all that. I really hate the haze and I wish that something is done to rectify it immediately. I am just thankful that so far, all I have experienced is a sore throat and nothing worse. I hope that the situation does turn for the better over the next few days.

Anyway, I have just received a letter I wished I never received, opened nor read. It's just my luck that the letter came at such a bad timing. Nothing I can do about it unless I am filthy rich and do not mind spending 3 years in prison. Oh well, I think I will stop here. 25 more days to the 'A' levels as of today.