Effects on Economy

Besides the loss of biodiversity and human health, forest fires also have negative impacts on the economy. Forest fires can incur huge amount of economic costs. World Wide Fund for Nature and the Economy and Environment Programme for Southeast Asia estimated about $4.4.billion economic cost accumulated throughout Southeast Asia as a result of Indonesia forest fires (Yoga and Aditama 2000). Not only that, fires also destroy potential revenues from timber and other forests resources (Yoga and Aditama 2000).

Adding on, due to the haze and hence, decreased visibility, flights have to be delayed or cancelled. Transportation on sea also gets affected. This breakdown in the transport system in turn incur more costs on top of those mentioned above.