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Analysis of Willingness to Pay and Socio-Economic Factors for Sanitation Facility in Indonesia

Author

Listed:
  • Agga Destya Arlingga

    (Master of Applied Economics, Padjadjaran University)

Abstract

This paper aims to explore communities’ contribution toward and identify the factors affecting the availability of sanitation facilities. Sanitation has an important role in human life because it correlates with the fulfillment of basic human needs such as wastewater and solid waste management. This research employed two models as follows: First, the hedonic price model was used to estimate the willingness to pay for improved sanitation facilities. Second, it also utilizes the logistic model to understand the correlation between socio-economic characteristics and availability of improved sanitation facilities. Using the fifth wave of Indonesia Family Life Survey (IFLS) data, the results show that the availability of toilet with septic tank influences the value of the property in urban areas. Hence, people living in urban areas are willing to pay more for facilities. Moreover, the awareness of people in urban and rural areas affect their willingness to pay (WTP) for appropriate garbage handling. However, drainage facilities do not significantly influence the value of the property in urban and rural areas. Related with the presence of improved sanitation facilities, socio-economic characteristics such as education level and residential area influence in Indonesia compared to other characteristics.

Suggested Citation

  • Agga Destya Arlingga, 2020. "Analysis of Willingness to Pay and Socio-Economic Factors for Sanitation Facility in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 202002, Department of Economics, Padjadjaran University, revised Jan 2020.
    • Handle: RePEc:unp:wpaper:202002
    as

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    File URL: http://ceds.feb.unpad.ac.id/wopeds/202002.pdf
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    References listed on IDEAS

    as
    1. Djoni Hartono & Bilang Nauli Harahap, 2007. "Willingness to Pay for Drinking Water and Sanitation Availability in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 200712, Department of Economics, Padjadjaran University, revised Nov 2007.
    2. Hasanuddin Abidin & Heri Andreas & Irwan Gumilar & Yoichi Fukuda & Yusuf Pohan & T. Deguchi, 2011. "Land subsidence of Jakarta (Indonesia) and its relation with urban development," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 59(3), pages 1753-1771, December.
    3. Ismaila Rimi Abubakar, 2017. "Access to Sanitation Facilities among Nigerian Households: Determinants and Sustainability Implications," Sustainability, MDPI, vol. 9(4), pages 1-17, April.
    4. Victoria Yue-May Fan & Ajay Mahal, 2011. "What prevents child diarrhoea? The impacts of water supply, toilets, and hand-washing in rural India," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 3(3), pages 340-370, September.
    5. Brueckner, Jan K., 2013. "Slums in developing countries: New evidence for Indonesia," Journal of Housing Economics, Elsevier, vol. 22(4), pages 278-290.
    6. Anjali Adukia, 2017. "Sanitation and Education," American Economic Journal: Applied Economics, American Economic Association, vol. 9(2), pages 23-59, April.
    7. Dare, Alaba Modupe, 2014. "Rural Households’ Access, Willingness to Pay (WTP) and Factors Influencing WTP for Safe Water and Sanitation in Southwest Nigeria," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 174832, Agricultural and Applied Economics Association.
    8. Andrea Baranzini & José Ramirez & Caroline Schaerer & Philippe Thalmann (ed.), 2008. "Hedonic Methods in Housing Markets," Springer Books, Springer, number 978-0-387-76815-1, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Sanitation; Toilet with Septic Tank; Solid Waste; Drainage; Willingness to Pay; Socio-economic;
    All these keywords.

    JEL classification:

    • I0 - Health, Education, and Welfare - - General

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