Singapore could strengthen efforts to address the recurring haze problem by focusing on economic measures that discourage environmentally harmful practices, rather than relying primarily on legislation and enforcement actions. According to environmental advocates, the current model allows certain companies to profit from the sale of products linked to land clearing involving slash-and-burn methods, which contribute significantly to haze pollution.

One proposed approach involves imposing environmental levies on commodities such as palm oil and paper products. These levies would apply broadly, with tax exemptions or rebates granted only to firms that can demonstrate their supply chains adhere to strict, independently verified sustainability standards. Such a system aims to shift the financial incentives in favor of responsible sourcing and production.

Beyond taxation, public sector procurement practices could also play a critical role. Governments purchase large quantities of paper, food items, and other goods, and by prioritizing suppliers with verifiable commitments to sustainable sourcing, they could reduce demand for products tied to deforestation or other destructive activities. Advocates argue that public funds should not inadvertently support companies contributing to environmental degradation.

This strategy would effectively transfer responsibility to companies to prove their products come from sustainable sources, making sustainability a competitive factor in the marketplace. Proponents contend that allowing businesses to compete on the basis of environmental stewardship, rather than on the basis of cost advantages derived from environmentally damaging land clearance, would help reduce haze-inducing practices.

While such measures could lead to higher prices for some consumer products, proponents maintain that this reflects the true cost of protecting the environment—costs that have often been externalized or overlooked. Encouraging responsible production by making it the more economically attractive option might be a necessary step to address the persistent haze crisis in the region.