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Society’s Willingness to Pay (WTP) for Environmentally Sound Agricultural Development Programs

Author

Listed:
  • Ketut Kariyasa

    (Researcher, Indonesian Center for Agricultural Socio-Economic Research and Development (ICASERD))

  • M.O. Adnyana

    (Researcher, Indonesian Center for Agricultural Socio-Economic Research and Development (ICASERD))

Abstract

Natural resource conservation programs like reforestation, terracing, the construction of small scale water reservoirs and alley cropping can be offered to communities living along river watershed areas to protect the environment. The community’s response and willingness to pay (WTP) varies. Related to the environmental conservation programs above, this research was carried out in the Citarum River Basin in West Java, covering the upstream area in Bandung District, the middle stream area in Cianjur District and the downstream area in Karawang Sub-District. The Contingent Valuation Method (CVM) was employed to analyze WTP by communities in the Citarum River Basin for the various programs on offer and the factors that influence WTP in order to obtain recommendations and policy implications for program implementation. The research showed that communities were quite willing to pay for conservation programs; downstream communities were even ready to participate in preventing environmental degradation in upstream areas as this negatively impacts their own communities.

Suggested Citation

  • Ketut Kariyasa & M.O. Adnyana, 2005. "Society’s Willingness to Pay (WTP) for Environmentally Sound Agricultural Development Programs," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 53, pages 147-176, August.
    • Handle: RePEc:lpe:efijnl:200506
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    More about this item

    Keywords

    Conservation; Environment Willingness to Pay;

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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