Introducing a haze derivative?

Abstract

The study explore the feasibility of developing a haze option, which will enable the haze-afflicted industries in Singapore to hedge against their resulting losses. The opportunity costs forgone are identified for the three industries most afflicted by the haze-tourism, airline andhealth. These estimates are correlated with the Pollutant Standards Index (PSI). Many haze-afflicted industries see an apparent relationship between a drop in their income levels and the occurrence of the haze.