skip to main content

Contingent Valuation of Lake Rawapening as a Source of Drinking Water

Watershed Management Technology Center, Indonesia

Received: 5 Sep 2019; Published: 9 Dec 2019.
Editor(s): Sudarno Utomo

Citation Format:
Abstract
The aim of this study is to estimate willingness to pay (WTP) of water consumers, by applying the contingent valuation method as a surcharge on their water bill, for a given improvement of the ecosystem of Lake Rawapening for ensuring the sustainability of freshwater supply in term quantity and quality as demanded by public water utility. The survey was conducted in Semarang regency involving 116 respondents in three villages that received clean water services from Lake Rawapening. The mean of WTP was estimated to be 6,055.54 rupiahs (0.433 US$) per month for each household, approximately equivalent to 9.26% of the average monthly water bill of households. The results revealed that younger educated respondents, households with higher income and with fewer members were, on average, were willing to pay more. This study also demonstrated that households’ ownership of shallow water wells was a hindering factor for contributing to improving lake’s ecosystem. The results of this study can assist decision‐makers to understand the public demand for improved the ecosystem of Lake Rawapening and to formulate better environmental policies.

Fulltext View|Download
Keywords: willingness to pay, contingent valuation method, Lake Rawapening, drinking water, Semarang
Funding: Balai Penelitian dan Pengembangan Teknologi Pengelolaan DAS

Article Metrics:

  1. Bateman, I.J., Carson, R.T., Day, B., Hanemann, W.M., Hanley, N., Hett, T., Lee, M.J., Loomes, G., Mourato, S., Özdemiroglu, E., Pearce, D.W., Sugden, R., Swanson, J., Hanemann, M., Hanley, N., Hett, T., Jones-Lee, M., Loomes, G., 2002. Economic Valuation with Stated Preference Techniques: A Manual, Economic Valuation with Stated Preference Techniques. Edward Elgar, Cheltenham, UK
  2. Choi, I.C., Kim, H.N., Shin, H.J., Tenhunen, J., Nguyen, T.T., 2017. Economic valuation of the aquatic biodiversity conservation in South Korea: Correcting for the endogeneity bias in contingent valuation. Sustainability (Switzerland) 9
  3. Fauzi, A., Anna, Z., 2013. The complexity of the institution of payment for environmental services: A case study of two Indonesian PES schemes. Ecosystem Services 6, 54–63
  4. Ginting, T., Ismail, A., Simangunsong, B., 2017. Economic Value of Medicinal Plants in Danau Sentarum National Park, West Kalimantan. Jurnal Ekonomi dan Pembangunan Indonesia 18, 22–34
  5. Greene, W.H., 2002. Econometric analysis, 5th ed, Journal of the American Statistical Association. Prentice Hall, Upper Saddle River, NJ, NJ
  6. Haab, T.C., McConnell, K.E., 2002. Valuing Environmental and Natural Resources: The Econometrics of Non-Market Valuation, New Horizons in Environmental Economics. Edward Elgar, Cheltenham, UK
  7. Hakim, A.R., Subanti, S., Tambunan, M., 2011. Economic Valuation of Nature-Based Tourism Object in Rawapening, Indonesia: An Application of Travel Cost and Contingent Valuation Method. Journal of Sustainable Development 4, 91–101
  8. Hammitt, J.K., Liu, J.-T., Liu, J.-L., 2001. Contingent valuation of a Taiwanese wetland. Environment and Development Economics 6, 259–268
  9. Hanemann, M., Kanninen, B., 2001. The Statistical Analysis of Discrete‐Response CV Data. In: Bateman, I.J., Willis, K.G., Kanninen, B.J. (Eds.), Valuing Environmental Preferences. Oxford University Press, Oxford, UK, pp. 302–441
  10. Haryani, G.S., 2014. Kondisi Danau di Indonesia dan Strategi Pengelolaannya. In: Chrismadha, T., Fakhrudin, M., Nofdianto, Said, D.S., Sulawesty, F. (Eds.), Perkembangan Limnologi Dalam Mendukung Pembangunan Berkelanjutan Di Indonesia: Tantangan Dan Harapan. Masyarakat Limnologi Indonesia, Bogor, Indonesia, pp. 1–19
  11. Henny, C., Meutia, A.A., 2014. Urban Lakes in Megacity Jakarta: Risk and Management Plan for Future Sustainability. Procedia Environmental Sciences 20, 737–746
  12. Hidayati, N., Soeprobowati, T.R., Helmi, M., 2018a. The evaluation of water hyacinth (Eichhornia crassiper) control program in Rawapening Lake, Central Java Indonesia. IOP Conference Series: Earth and Environmental Science 142, 0–5
  13. Hidayati, N., Soeprobowati, T.R., Helmi, M., 2018b. The evaluation of water hyacinth (Eichhornia crassiper) control program in Rawapening Lake, Central Java Indonesia. In: IOP Conference Series: Earth and Environmental Science
  14. Indonesian Central Agency of Statistics, 2018. Statistical Yearbook of Indonesia 2018. Indonesian Central Agency of Statistics, Jakarta, Indonesia
  15. Krinsky, I., Robb, a L., 1986. On Approximating the Statistical Properties of Elasticities. Review of Economics and Statistics 68, 715–719
  16. Lin, H., Ueta, K., 2012. Lake watershed management: Services, monitoring, funding and governance. Lakes and Reservoirs: Research and Management 17, 207–223
  17. Loomis, J., Kent, P., Strange, L., Fausch, K., Covich, A., 2002. Measuring the total economic value of restoring ecosystem services in an impaired river basin: results from a contingent valuation survey. Ecological Economics 33, 103–117
  18. Loomis, J., Smith, A., Huszar, P., 2005. Estimating the economic benefits of maintaining residential lake levels at an irrigation reservoir: A contingent valuation study. Water Resources Research 41, 1–9
  19. Pawitan, H., Haryani, G.S., 2011. Water resources, sustainability and societal livelihoods in Indonesia. Ecohydrology and Hydrobiology 11, 231–243
  20. PT. Suwanda Karya Mandiri, 2015. Studi Pengukuran, Sedimentasi dan Kualitas Air Waduk Rawa Pening. Semarang, Indonesia
  21. Putri, I.A.P., 2017. Socio-economic Awareness on Protecting Lake Maninjau Using Willingness to Pay. Jurnal Sosial Ekonomi Pekerjaan Umum 9, 28–37
  22. Reynaud, A., Lanzanova, D., 2017. A Global Meta-Analysis of the Value of Ecosystem Services Provided by Lakes. Ecological Economics 137, 184–194
  23. Soeprobowati, T.R., 2015. Integrated Lake Basin Management for Save Indonesian Lake Movement. Procedia Environmental Sciences 23, 368–374
  24. Subanti, S., Hakim, I.M., Daerobi, A., Nasir, M.S., Hakim, A.R., 2017. Determinant of Willingness to Pay and Economic Value for Ecotourism Object Using Contingent Valuation Method : The Case of Rawapening, Semarang Regency, Central Java, Indonesia 28, 250–252
  25. Thornton, J.A., Harding, W.R., Dent, M., Hart, R.C., Lin, H., Rast, C.L., Rast, W., Ryding, S.O., Slawski, T.M., 2013. Eutrophication as a “wicked” problem. Lakes and Reservoirs: Research and Management 18, 298–316
  26. Vatn, A., 2010. An institutional analysis of payments for environmental services. Ecological Economics 69, 1245–1252
  27. Verbeek, M., 2000. A Guide to Modern Econometrics. John Wiley and Sons, Sussex, United Kingdom
  28. Whittington, D., 2002. Improving the performance of contingent valuation studies in developing countries. Environmental and Resource Economics 22, 323–367
  29. Zhang, D., Stenger, A., 2015. Value and valuation of forest ecosystem services. Journal of Environmental Economics and Policy 4, 129–140

Last update:

  1. Lake and the laws: An exploratory network analysis of legal provisions for lake management

    E Irawan. IOP Conference Series: Earth and Environmental Science, 789 (1), 2021. doi: 10.1088/1755-1315/789/1/012038

Last update: 2024-12-26 10:14:46

No citation recorded.