Economic valuation of critical land

The purposes of this research are to analyze and to identify the factors influencing the farmers' Willingness to Pay (WTP) in reducing the impact of the critical land. The research method used to calculate the farmers' WTP on the land restoration is the Willingness to Pay (WTP) Method, and...

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Bibliographic Details
Published in:IOP conference series. Earth and environmental science 2019-12, Vol.399 (1), p.12117
Main Authors: Pratiwi, S R, Purnomo, E, Usman, S
Format: Article
Language:English
Subjects:
Agricultural economics
economic valuation
Environmental restoration
Environmental science
Farmers
Independent variables
Land degradation
Land ownership
land restoration
Mathematical analysis
Publishing
Restoration
Willingness to pay
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Summary:The purposes of this research are to analyze and to identify the factors influencing the farmers' Willingness to Pay (WTP) in reducing the impact of the critical land. The research method used to calculate the farmers' WTP on the land restoration is the Willingness to Pay (WTP) Method, and The Ordinal Logistic Regression Method is used to analyze WTP's influencing factors. The result showed that the farmers' average of maximum WTP was IDR 21,196. This means that the farmers' average of maximum WTP is lower than the average cost incurred by the farmers for the land restoration activity that was IDR 58,000. This indicated the low of farmers' awareness in the efforts of doing critical land restoration. The independent variable with significant influence is the OWN (status of the land ownership) variable. The other variables that are positive and significant are income, age, education, long stay, and family numbers. The significant variables with negative impact are marital status, occupation, and land restoration activity. In general, farmers thought that the activities of repairing the degraded land were the role of the government. So that the efforts of farmers in recovering land are almost non-existent.
ISSN:1755-1307
1755-1315
DOI:10.1088/1755-1315/399/1/012117