Estimating Willingness-to-Pay Values to Improve the PDAM Clean Water in Surabaya
DOI:
https://doi.org/10.61841/vm1an392Keywords:
Demand for clean water, economic valuation, contingent valuation methodAbstract
Clean water plays an important role in every activity of mankind—in household, commercial, industrial, as well as public and social sectors. As the second biggest city after Jakarta, Surabaya faces a fundamental issue of basic needs, which is the poor quality of clean water for domestic use. Polluted water due to contaminants has been a daily issue in Surabaya. Therefore, the aim of this research is to estimate the economic value of clean water accrued to households in Surabaya city, the capital of East Java Province in Indonesia. The economic valuation was carried out by determining households’ willingness to pay for improved water quality and reliability of supply through the Contingent Valuation technique. The valuation is limited to urban households in this context is PDAM customer. This paper results the aggregate value of water quality and reliability improvements have been substantial such that it warrants PDAM to improve the quality of pertinent services. However, such provision will be contingent on a further cost-benefit valuation based on its affordability of supply relative to demand.
Downloads
References
[1] Lange G.M., and Hassan R.M 2006 The Economics of Water Management in Southern Africa, USA: Edward Elgar Publishing.
[2] Slamet J. S. 2007 Kesehatan Lingkungan, Yogyakarta: Gadjah Mada University Press.
[3] Sutrisno C.T., dan Suciastuti E. 2006 Teknologi Penyediaan Air Bersih, Jakarta: Rineka Cipta.
[4] Kementerian Kesehatan 2011 Profil Kesehatan Indonesia Tahun 2010, Jakarta.
[5] Biro Pusat Statistik 2008 Statistik Kesejahteraan Rakyat 2008 Survei Sosial Ekonomi Nasional Jakarta: Prodata Nusaraya.
[6] PDAM Kota Surabaya 2010 PDAM Kota Surabaya Lakukan Survey Kepuasan Pelanggan Tahun 2010
[7] Hidayati N.A. 2002 Valuasi Ekonomi Kualitas Air Kali Surabaya sebagai Sumber Air Baku untuk Air Minum Penduduk di Kota Surabaya Tesis Program Studi Ilmu Lingkungan, Sekolah Pascasarjana, Universitas Gadjah Mada.
[8] Republik Indonesia 2010 Peraturan Menteri Kesehatan Republik Indonesia Nomor 492 Tahun 2010 tentang Persyaratan Kualitas Air Minum
[9] Sunarto 2002 Trend Kualitas Kali Surabaya PDAM Surabaya, 2 Nopember 2002.
[10] Sukoco, B. M., Suprayogi, N., & Hidayati, N. A 2018 The Effects of Market Orientation on Environmental Social Responsibility Programmes: The Moderating Effects of Institutional Pressures Pertanika Journal of Social Sciences & Humanities
[11] Asian Development Bank 1996 Economic Evaluation of Environmental Impacts: A Workbook, Philippines: Environment Division Office of Environmental and Social Development.
[12] Turner R.K., Pearce D., and Bateman I. 1994 Environmental Economics: An Elementary Introduction USA: Prentice Hall
[13] Houtven, George L.V. What are Households Willing to Pay for Improved Water Access? Results from a Meta- Analysis. Ecological Economics.
[14] Forum for Economics and Environment, 2010 Economic Valuation of Natural Resources and Environment Training Material (Draft 1), unpublished
[15] Field B.C., dan Olewiler N 2002 Environmental Economics, Second Canadian Edition, USA: McGraw-Hill
[16] King, D.M. dan Mazzotta, M.J. 2000 Ecosystem Valuation, US Department of Agriculture Natural Resources Conservation Service and National Oceanographic and Atmospheric Administration
[17] Dixon J.A., Carpenter R.A., Fallon L.A., Sherman P.B., and Manopimoke S 1988 Economic Analysis of the Environmental Impacts of Development Projects London: British Library Cataloguing in Publication Data
[18] Gunatilake H., Yang J-C, Pattanayak S., and Choe K.A 2007 Good Practices for Estimating Reliable Willingness-to- Pay in the Water Supply and Sanitation ERD Technical Note 23 Asian Development Bank.
[19] Mehrara M., Pakdin J., and Nejad A. Willingness to Pay for Drinking Water Connections: The Case of Larestan Iran
Journal of Academic Research in Economics 2009 1,2
[20] Tiltnes A.A. Ability and Willingness to Pay for Water and Sewage Service in Two Palestinian Cities: Result from a Household Survey in Nablus and Gaza City Fafo-Paper 1998:17
[21] Arrow K., Solow R., Portney P.R., Leamer E.E., Radner R., and Schuman H. 1993 Report of the NOAA panel on contingent valuation Federal Register 58: 4601-4614,Washington.
[22] Vloerbergh I., Fife-Schaw C., Kelay T., Chenoweth J., Morrison G., and Lundehn C. 2007 Assessing Consumer Preferences for Drinking Water Service: Method for Water utilities, European: Techneau
[23] Farolfi S., Mabugu R.E., and Ntshingila S.N. Dometic Water Use and Values in Swaziland: A Contingent Valuation
Analysis Agrekon 2007; 46:1
[24] Ahmad I., Haq M.U., and Sattar A. Factors Determining Public Demand for Safe Drinking Water (A Case Studi of District Peshawar) PIDE Working Paper, 2010:58.
[25] Katuwal H., and Bohara A.K. Coping with Unreliable Water Supplies and Willingness to Pay for Improved Water Supply in Kathmandu, Nepal, paper presented at The Second Annual Himalayan Policy Research Conference, Nepal, October 11, 2007.
[26] Chariri A. 2009 Landasan Filsafat dan Metode Penelitian Kualitatif Makalah disajikan pada Workshop Metode Penelitian Kuantitatif dan Kualitatif diselenggarakan oleh Laboratorium Pengembangan Akuntansi (LPA) Fakultas Ekonomi Universitas Diponegoro Semarang, 31 Juli – 1 Agustus 2009.
[27] Cochran W.G. 1990 Teknik Penarikan Sampel (terjemahan) Edisi Ketiga Jakarta: UIP
[28] Gujarati D. 2010 Basic Econometrics New York: Mc. Graw Hill
[29] Luangmany D., and Voravong S. The Sustainable Development and Maintaince of Urban Parks: A Case Study on Saysetha Park Valuing Environmental Service using Contingent Valuation Method, EEPSEA, October 2009
[30] Casey, James F. et al. Willingness to pay for improved water service in Manaus, Amanas, Brazil Ecological Economics (58: 2006) September 2005
[31] Badan Perencanaan Pembangunan Nasional 2010 Laporan Perkembangan Pencapaian Millenium Development Goals Indonesia 2010 Jakarta
[32] 2011 Situasi Diare di Indonesia Buletin Jendela Data dan Informasi Triwulan II 2001 Jakarta
[33] 2010 Profil Kesehatan Indonesia Tahun 2009 Jakarta
[34] 2009 Profil Kesehatan Indonesia Tahun 2008 Jakarta
[35] Thanthathep Kaisorn. et. All 2009 Using CVM for In-Situ Biodiversity Conservation and Sustaniability: A Case Study of the Houay Nhang Protected Area EEPSEA
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
