Economic valuation of household preference for solid waste management in Malaysia: A choice modeling approach

This study estimated the economic values of household preferences for improved solid waste management (SWM) service attributes in Malaysia. The Choice Model (CM) was employed on 859 randomly selected urban households in Kajang and Seremban areas. The study found that households were willing to pay a premium for improvements in the SWM system. More specifically, the study ascertains that households on average are willing to pay a charge of RM1.57 per month for a change in collection frequency - from 3 irregular times to either 3 scheduled times or 4 times per week, ceteris paribus; RM3.32 if waste disposal method was improved from control tipping to sanitary landfill, ceteris paribus; and RM2.48 if transportation mode was improved from a mix of compactor and open trucks to either compactor or a mix of compactor and covered trucks, ceteris paribus. The CM has also shown that households derive positive utility from the provisions of recycling facilities and compulsory kerbside recycling with an implicit price (willingness to pay) of about RM3.51 monthly. Results from the study can be used by service providers to identify any mismatch between what the public actually wants and are willing to pay for and the affordability of supply on the part of service providers

Money and Sustainability

This paper overviews the political-economics of FIAT and asset-based money. The paper further highlights the presumably syariah standpoint of the impartiality character of money as the fundamental factor that differentiates money from her conventional counterpart. The paper argues that while it is ideal for asset-based money to make a comeback in the interest of holistic wellbeing (maslahah) of humankind, it necessarily be complemented by an appropriate financial and regulatory system to safeguard its impartiality, i.e., viz, non-tradable, non-interest bearing, and non-debt financing to avoid the recurring pitfalls which are immanent in conventional financial system. It is hoped this rather concise paper will offer a thought provoking discourse on how syariah principles may present the world a useful ideological construct for a new monetary and financial architecture in light of the global financial crises.Financial crises; Neutrality of money; FIAT money; Asset based money; Islamic perspectives of money; Financial regulatory system; Money and sustainability

Linking Agricultural Trade, Land Demand and Environmental Externalities: Case of Oil Palm in South East Asia

Reduction of support measures affecting soybean oil in the major soybean producing countries, as a consequence of WTO rules, coupled with rising demand for palm oil in non-traditional palm oil importing countries may lead to pronounced increases in agricultural land demand for oil palm expansion in Malaysia and Indonesia – two main palm oil producing and exporting countries. However, it is expected that the effects on agricultural land demand and consequently impact upon the environment will depend much on existing governance affecting environmental and forestry management in the two countries. Given the relatively more prevalent policy and institutional failures in Indonesia, it is anticipated that deforestation consequences and open burnings in the country will be stronger, inevitably giving rise to recurring haze externalities in the region. This study employed single and multi-country output supply exogenous policy models with explicit factor markets to examine agricultural land demand-trade linkages in the world vegetable oil markets. Shifts in export demand for palm oil and reductions of support measures affecting soybean production were simulated and effects on land use in Malaysia and Indonesia were observed under varying assumptions of environmental and forestry policy regimes in the two countries. Inferences on environmental effects are also provided.Agricultural trade and environment; Oil palm economy in Malaysia and Indonesia; Oil palm expansion and haze; Transboundary pollution; Policy failures and environmental impacts

Accounting for Depletion of Oil and Gas Resources in Malaysia

This paper provides an assessment of the changes in the availability of oil and gas resources in Malaysia. The physical and monetary balance sheets for crude oil and natural gas for the period 2000- 2007 was constructed. The net present value of expected future incomes to reflect the value of resource change was calculated based on a physical extraction and a resource rent scenario. Resource rent is gross operating surplus less the estimated user cost of produced capital in the crude oil and natural gas extraction industry. We obtained the gross operating surplus by subtracting the value of consumption of employees and net taxes on production cost from the value added of petroleum domestic products. Our findings noted serious reduction of oil reserves from 2001 – 2005, due to changes in crude oil prices, and thereafter the depletion rate decreased. Malaysia has depleted her natural gas reserves mainly in 2004 and 2005. Changes in reserves values were attributable more to price changes and new discoveries. Further, our study shows the royalty rate paid by the state oil company was far less than the estimated resource rent.Sustainability; Environmental Accounts and Accounting; Malaysian Oil and Gas Depletion

Accounting for Depletion of Oil and Gas Resources in Malaysia

This paper provides an assessment of the changes in the availability of oil and gas resources in Malaysia. The physical and monetary balance sheets for crude oil and natural gas for the period 2000- 2007 was constructed. The net present value of expected future incomes to reflect the value of resource change was calculated based on a physical extraction and a resource rent scenario. Resource rent is gross operating surplus less the estimated user cost of produced capital in the crude oil and natural gas extraction industry. We obtained the gross operating surplus by subtracting the value of consumption of employees and net taxes on production cost from the value added of petroleum domestic products. Our findings noted serious reduction of oil reserves from 2001 – 2005, due to changes in crude oil prices, and thereafter the depletion rate decreased. Malaysia has depleted her natural gas reserves mainly in 2004 and 2005. Changes in reserves values were attributable more to price changes and new discoveries. Further, our study shows that the royalty rate paid by the state oil company, Petronas was far less than the estimated resource rent.Sustainability, Environmental Accounts, Accounting, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q56,

Does ASEAN Freer Trade Benefit Malaysia?

This paper examines the impact of intra-ASEAN trade liberalization (AFTA) using a multi-country, computable general equilibrium model (GTAP Model) with special focus on Malaysia. The study considers the full elimination of intra-ASEAN import taxes and export subsidies. Results suggest that Malaysia‟s GDP would only increase marginally while the effects on the individual commodity sectors in the country differ substantially.ASEAN Free Trade (AFTA), GTAP, CGE Trade Model, AFTA Impacts on Malaysia, Trade liberalization

Linking exchange rates, market failures and agricultural land demand

The financial crisis of 1997/98 has provided the so-called "Sun set" agricultural sector a rejuvenated role as a growth impetus. This leads to concerns as to whether agricultural augmentation would pose significant repercussions on the pattern of naruml resource use, especially land factor. This paper explores whether sustained depreciation of The Malaysian Ringgit will pose significant impacts on agricultural land demand in the country, with special focus on the oil palm sub-sector. A comparative static, single commodity model with explicit land factor is employed. Analysis shows that a prolonged Ringgit depreciation of 40 percent ceteris paribus will have substantial impacts on land demand (about 10 percent for the oil palm sub-sector). In reality, expansion of oil palm land-use could be greater as other crops, especially rubber is steadily being converted to oil palm due to relative commodity price changes and rising production cost

Solid Waste Disposal: A Choice Experiment Experience in Malaysia

Increasing generation of solid waste requires better quality disposal options in Malaysia. Control tipping is the most commonly used complemented by sanitary landfill and incineration. This study estimates the non-market values of improved waste disposal services and also ranking them using choice experiment. River water quality is the most concerned followed by psychological fear, air pollution and land use. Socio-economic background and distance factor influence the types of compensating surpluses. These conclude the importance of perception, influenced by socio-economic background, the presence of the Not-In-My-Backyard syndrome and that sanitary landfill is more preferred.Solid waste disposal; willingness-to-pay; choice experiment

Household Demand for Solid Waste Disposal Options in Malaysia

This paper estimates the economic values of household preference for enhanced solid waste disposal services in Malaysia. The contingent valuation (CV) method estimates an average additional monthly willingness-to-pay (WTP) in solid waste management charges of €0.77 to 0.80 for improved waste disposal services quality. The finding of a slightly higher WTP from the generic CV question than that of label-specific, further reveals a higher WTP for sanitary landfill, at €0.90, than incineration, at €0.63. This suggests that sanitary landfill is a more preferred alternative. The logistic regression estimation procedure reveals that household’s concern of where their rubbish is disposed, age, ownership of house, household income and format of CV question are significant factors in influencing WTP.contingent valuation, logistic regression, solid waste disposal, willingness-to-pay.

Food security, freer agricultural trade and endogenous policy formation

In light of the on going policy debate on globalization issues, this paper illustrates the implication of interest group influence and national strategic interests on policy formation in the Malaysian rice sub-sector when the policymaker welfare criterion was used in drawing up policies. This paper suggests a domestic and international political-economic scenario where joint welfare maximization will be the desirable policy choice among trading countries