11th International Conference on ICTIS

Authors - Ahir Jaimi, Niyati Patel, Nirav Bhatt
Abstract - This research studied the economic impact and perceptions of air pollution, particularly PM2.5, in Chiang Mai Province, Thailand, using the Multiple Indicators Multiple Causes model (MIMIC model) and Mixed Data Sampling Regression (MIDAS model). The MIMIC model analyzed data from questionnaires administered to 5 0 7 respondents and examined factors influencing public perception of hotspots and PM2.5. The MIDAS model analyzed the impact of monthly PM2.5 levels and monthly hotspot counts on quarterly Gross Provincial Product (GPP), using data from 2019 to 2023.The MIMIC model analysis revealed that perception of burning or activities causing hotspots was the most influential factor in determining public perception of the impact of PM2.5. The effectiveness of government efforts to address the pollution problem had a negative correlation, while demographic and socioeconomic characteristics showed no statistically significant impact. This indicates that public perception is more influenced by received information or education than by personal characteristics. The MIDAS model highlighted the economic impact of hotspots and air pollution. The analysis results indicate that When hotspots or burning occur, these activities have a statistically significant positive impact on the province's GPP. A 1% increase in hotspots is correlated with an approximately 0 .14% increase in quarterly GPP, suggesting that economic activity or agricultural burning may lead to increased economic activity and consequently a short-term increase in GPP. Conversely, a decrease in PM2.5 concentration in the previous month resulted in an approximately 0.47% decrease in quarterly GPP, demonstrating that the economic costs of air pollution occur with a delayed effect rather than simultaneously. Therefore, this research highlights the importance of the correlation between short-term economic benefits and polluting activities, as well as the delayed economic losses resulting from poor and toxic air quality. This research emphasizes the importance of air quality management, risk communication and support, and economic and environmental policies to address the long-term economic and social impacts of PM2.5 pollution.