Water Scarcity, Mountain Deforestation and the Economic Value of Water in a Small-Scale Irrigation System: A Case Study in East Java, Indonesia

Budiman Subhan Arif, Rondhi Mohammad (), Khasan Ahmad Fatikhul, Peratama Bagus, Rokhani, Suwandari Anik, Ridjal Julian Adam, Soemarno, Prijono Sugeng and Soedarto
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Budiman Subhan Arif: Department of Soil Science, Faculty of Agriculture, University of Jember, Indonesia
Rondhi Mohammad: Department of Agribusiness, Faculty of Agriculture, University of Jember, Indonesia
Khasan Ahmad Fatikhul: Department of Agribusiness, Faculty of Agriculture, University of Jember, Indonesia
Peratama Bagus: Department of Agribusiness, Faculty of Agriculture, University of Jember, Indonesia
Rokhani: Department of Agricultural Extension, Faculty of Agriculture, University of Jember, Jember, Indonesia
Suwandari Anik: Department of Agribusiness, Faculty of Agriculture, University of Jember, Indonesia
Ridjal Julian Adam: Department of Agribusiness, Faculty of Agriculture, University of Jember, Indonesia
Soemarno: Department of Soil Science, Faculty of Agriculture, Brawijaya University, Malang, Indonesia
Prijono Sugeng: Department of Soil Science, Faculty of Agriculture, Brawijaya University, Malang, Indonesia
Soedarto: Department of Soil Science, Faculty of Agriculture, Brawijaya University, Malang, Indonesia

Quaestiones Geographicae, 2021, vol. 40, issue 2, 153-166

Abstract: The purpose of this study was to identify the willingness of farmers to pay for small-scale irrigation (SSI) and its determinants. Additionally, this study analysed the physical water availability in the study area using 16 years’ (2004–2019) historical data of streamflow, rainfall and forest cover change. A structured questionnaire was used to collect the data from 100 farmers. A contingent valuation method was employed to elicit farmers’ willingness to pay (WTP) for irrigation water. The results show that the average WTP of farmers is US$ 215.84/ha/year. It accounts for 20% of farm revenue and is almost 20 times the water fee in large-scale irrigation systems. The study area experienced significant deforestation in the last two decades suffering a decrease of 11.72% of forest cover. It decreases the amount of stored rainwater and decreases the streamflow causing water scarcity during the dry season. Farm size, farmer income, distance to a small dam and usage of water-pump are the significant determinants. The results indicate that water scarcity caused by poor infrastructure increases the economic value of water in a SSI system.

Keywords: water scarcity; small-scale irrigation system; contingent valuation method; economic value of water; willingness to pay (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:quageo:v:40:y:2021:i:2:p:153-166:n:9

DOI: 10.2478/quageo-2021-0015

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