Local willingness to fund climate-resilient water utilities in a tourism-dependent region of Indonesia

Evi Siti Sofiyah, Sapta Suhardono, I Wayan Koko Suryawan and Lee Chun-Hung

Utilities Policy, 2025, vol. 96, issue C

Abstract: This study explores public preferences and willingness to fund climate-resilient water utility services in a tourism-intensive region of Bali, Indonesia. Given the dual pressures of seasonal tourist demand and increasing climate-related disruptions, water utilities in such regions require innovative strategies that balance technical resilience with community support. To address this, we designed a scenario-based choice experiment involving 640 respondents to assess preferences for adaptive water service improvements structured around five key governance and operational attributes: Asset (infrastructure upgrades such as innovative rainwater harvesting), Flexibility (responsive and decentralized management), Social Organization (cross-functional leak detection and repair teams), Learning (training and innovation capacity), and Agency (community participation in planning and decision-making). Three hypothetical adaptation scenarios were developed by combining different levels of these attributes: Scenario 1 prioritized technological improvements and social monitoring; Scenario 2 emphasized decentralization, institutional learning, and stakeholder feedback; Scenario 3 integrated advanced infrastructure with active local agency and inclusive governance. Results from random parameter logit and latent class model estimations indicate that the highest marginal willingness to pay (MWTP) is for Scenario 3 (an 18.44 % increase in household water bills), followed by Scenario 2 (11.13 %) and Scenario 1 (7.31 %). Segmentation results further reveal that individuals with higher income, education, and climate awareness were more likely to support integrated strategies that emphasized both technology and participatory governance. These findings provide practical guidance for local governments and utility managers in formulating equitable, climate-resilient water policies.

Keywords: Adaptive water management; Climate resilience; Sustainable water practices (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S095717872500133X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:96:y:2025:i:c:s095717872500133x

DOI: 10.1016/j.jup.2025.102018

Access Statistics for this article

Utilities Policy is currently edited by Beecher, Janice

More articles in Utilities Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().