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

Agga Destya Arlingga ()
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Agga Destya Arlingga: Master of Applied Economics, Padjadjaran University

No 202002, Working Papers in Economics and Development Studies (WoPEDS) from Department of 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.

Keywords: Sanitation; Toilet with Septic Tank; Solid Waste; Drainage; Willingness to Pay; Socio-economic (search for similar items in EconPapers)
JEL-codes: I0 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2020-01, Revised 2020-01
New Economics Papers: this item is included in nep-dcm, nep-env and nep-sea
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