Willingness to Pay for Improved Sanitation in Indonesia: Cross-Sectional Difference-in-Differences

Mohammad Yasin, Hasyim Ali Shahab, Tegar Rismanuar Nuryitmawan, Hesti Retno Budi Arini and Rumayya Rumayya

MPRA Paper from University Library of Munich, Germany

Abstract: In the face of insufficient attempt by policy makers to develop improved sanitation apparently has captivated attention of market-based approach– a potential solution of appropriate and safe sanitation for low-income settings. However, to accommodate this approach, a study to assess willingness to pay (WTP) of people upon sanitation is necessitated. This study aims to investigate the effect of individual’s knowledge upon the WTP of standardized latrine. This study employed primary data of 181 individuals spread in the three regencies and one municipality in the province of East Java, Indonesia. By using cross-sectional difference-in-differences, this study demonstrated a robust model revealing that the knowledge of individuals towards standardized latrine significantly brings positive impact on their WTP. This finding indicates that those who have known the standardized sanitation as well as its benefits tend to possess a higher WTP. Moreover, this study also discovered a significant effect of wife as decision marker in the family in allocating higher WTP to standardized latrine. This finding implies that women-led organizations (e.g. PKK or Muslimatan) can be an optimal media for socialization and marketing target of latrine products.

Keywords: willingness-to-pay; East Java; standardized latrine (search for similar items in EconPapers)
JEL-codes: I10 I18 (search for similar items in EconPapers)
Date: 2020-12-31
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https://mpra.ub.uni-muenchen.de/106160/1/MPRA_paper_106160.pdf revised version (application/pdf)

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