HOUSEHOLDS' AWARENESS AND WILLINGNESS TO PAY FOR DOMESTIC WASTEWATER SERVICES: A CASE OF BATAM CITY, INDONESIA
DOI:
Abstract
Most developing countries lack access to a reliable domestic wastewater service. The perception that government should deliver public goods, along with high investment and limited public budget capacity, create barriers for investing in and providing this service. Literatures on the implementation of Polluter-Pays Principles bring the possibility for charging households for wastewater service to recover operational cost and capital cost. This study aims to see the relationship between public awareness and the probability to pay higher for domestic wastewater services using the case of Batam City, Indonesia. Logit regression analysis method is utilized to 663 observations and result shows that households—who realize that domestic wastewater is a source of pollution and the polluter must pay—have a positive relationship with the probability of paying higher for domestic wastewater services. This finding could be an opportunity for charging the externality of water user and increasing economic feasibility for investing in wastewater service.
Downloads
References
Ajzen, I., & Driver, B. L. (1992). Contingent Value Measurement : On the Nature and Meaning of Willingness to Pay. Journal of Consumer Psychology, 1(4), 297–316.
Annisa, S., Kadir, H., & Mardiana, M. (2015). Analisis Willingness To Pay (WTP) Sampah Rumah Tangga (Studi Kasus Perumnas Kelurahan Simpang Baru Panam Pekanbaru). Jurnal Online Mahasiswa Fakultas Ekonomi Universitas Riau, 2(1), 33743.
Asian Development Bank. (2004). Water in Asian Cities: Utilities' Performance and Civil Society Views (1st Ed.). Asian Development Bank.
Asian Development Bank. (2011). Fast Facts : Urbanization in Asia (Issue November).
Batam City Statistics Agency. (2021). Batam in Figures 2021. In Batam City Statistics Agency. Batam City Statistics Agency. http://publications.lib.chalmers.se/records/fulltext/245180/245180.pdf%0Ahttps://hdl.handle.net/20.500.12380/245180%0Ahttp://dx.doi.org/10.1016/j.jsames.2011.03.003%0Ahttps://doi.org/10.1016/j.gr.2017.08.001%0Ahttp://dx.doi.org/10.1016/j.precamres.2014.12
Batam Indonesia Free Zone Authority. (2020a). Feasibility Study on The Application of One Bill System for Wastewater and Drinking Water.
Batam Indonesia Free Zone Authority. (2020b). Raw Water Quality Monitoring Work Report in Batam City in 2020. In Batam Indonesia Free Zone Authority.
Byambadorj, A., & Lee, H. S. (2019). Household Willingness to Pay for Wastewater Treatment and Water Supply System Improvement in a Ger area in Ulaanbaatar City, Mongolia. Water (Switzerland), 11(9), 1–18. https://doi.org/10.3390/w11091856
Djono, T. P. Al. (2017). Biaya Air dan Eksternalitas Ekonomi Penggunaan Sumber Air. Www.Ipehijau.Org. https://ipehijau.wordpress.com/2017/10/05/biaya-air-sesungguhnya-dan-eksternalitas-ekonomi-pada-sumber-air/
Elysia, V. (2018). Air dan Sanitasi : Dimana Posisi Indonesia. Peran Matematika, Sains, Dan Teknologi Dalam Mencapai Tujuan Pembangunan Berkelanjutan/SDGs, 157–179. http://repository.ut.ac.id/7467/
Emalia, Z., & Huntari, D. (2016). Willingness to Pay Masyarakat Terhadap Penggunaan Jasa Pengolahan Sampah. Jurnal Ekonomi Kuantitatif Terapan, 9(1), 46–52. https://ojs.unud.ac.id/index.php/jekt/article/view/22757
Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics. In McGraw-Hill Irwin (5th ed.). The McGraw-Hill Companies, Inc.
Hagos, D., Mekonnen, A., & Gebreegziabher, Z. (2013). Households Willingness to Pay for Improved Urban Solid Waste Management: The Case of Mekelle City, Ethiopia. Ethiopian Journal of Economics, 22(1), 107–138.
Herdiani, G. (2009). Analisis Willingness To Pay Masyarakat terhadap Perbaikan Lingkungan Perumahan (Kasus Perumahan Bukit Cimanggu City RW 10). In Departemen Ekonomi Sumberdaya dan Lingkungan, Fakultas Ekonomi dan Manajemen, Institut Pertanian Bogor. Institut Pertanian Bogor.
Holloway, M. L., & Tharp, D. (1990). A Methodology for Determining Ability to Pay (Issue March).
Hosmer, D. W., & Lemeshow, S. (2000). Applied Logistic Regression (N. A. C. Cressie, N. I. Fisher, I. M. Johnstone, J. B. Kadane, D. W. Scott, B. W. Silverman, A. F. M. Smith, J. L. Teugels, E. Vic Barnett, E. Ralph A. Bradley, E. J. Stuart Hunter, & E. David G. Kendall (eds.); 2nd ed.). John Wiley & Sons, Inc.
Husted, B. W., Russo, M. V., Meza, C. E. B., & Tilleman, S. G. (2014). An exploratory study of environmental attitudes and the willingness to pay for environmental certification in Mexico. Journal of Business Research, 67(5), 891–899. https://doi.org/10.1016/j.jbusres.2013.07.008
Hutton, G. (2012). Global costs and benefits of drinking-water supply and sanitation interventions to reach the MDG target and universal coverage. In World Health Organization (Vol. 01). http://www.who.int/water_sanitation_health/publications/2012/global_costs/en/
Irawan, B. B. (2009). Willingness To Pay dan Ability To Pay Pelanggan Rumah Tangga sebagai Respon terhadap Pelayanan Air Bersih dari PDAM Kota Surakarta. JEJAK: Jurnal Ekonomi Dan Kebijakan, 2(1), 29–43.
Jhansi, S. C., & Mishra, S. K. (2013). Wastewater Treatment and Reuse: Sustainability Options. The Journal of Sustainable Development, 10(1), 1–15. https://doi.org/10.7916/D8JQ10Q1
Joko, T., & Fikri, E. (2012). Condition and Efforts Management Strategy of Sanitation in Batam City. Jurnal Kesehatan Lingkungan Indonesia, 11(1), 43–53.
Kaliba, A. R. M., Norman, D. W., & Chang, Y. M. (2003). Willingness to pay to improve domestic water supply in rural areas of Central Tanzania: Implications for policy. International Journal of Sustainable Development and World Ecology, 10(2), 119–132. https://doi.org/10.1080/13504500309469791
Ladiyance, S., & Yuliana, L. (2014). Variabel-Variabel yang Memengaruhi Kesediaan Membayar (Willingness to Pay) Masyarakat Bidaracina Jatinegara Jakarta Timur. Jurnal Ilmiah WIDYA, 2(2), 41–47.
Le, T. T. P., & Aramaki, T. (2019). Factors Affecting Households' Willingness to Pay for Improved Wastewater Services in Ho Chi Minh City, Vietnam. Journal of Water and Environment Technology, 17(3), 163–173. https://doi.org/10.2965/jwet.18-067
Ma, X., Wu, D., & Zhang, S. (2018). Multiple Goals Dilemma of Residential Water Pricing Policy Reform: Increasing Block Tariffs or a Uniform Tariff with Rebate? Sustainability (Switzerland), 10(10), 1–17. https://doi.org/10.3390/su10103526
Massoud, M. A., Tarhini, A., & Nasr, J. A. (2009). Decentralized approaches to wastewater treatment and management : Applicability in developing countries. Journal of Environmental Management, 90(1), 652–659. https://doi.org/10.1016/j.jenvman.2008.07.001
Metcalf, & Eddy. (1991). Wastewater and Engineering (3rd ed.). McGraw Hill International Engineering.
Muhammad, Ali shah, S. A., Hussain, A., & Hayat, U. (2014). Assessing household willingness to pay for quality sanitation services in urban areas of Pakistan. World Journal of Environmental Biosciences, 7(1), 26–31.
Munusami, C., Othman, J., Ismail, S. M., & Siwar, C. (2016). Estimation of Willingness To Pay for Wastewater Treatment Service Improvement. International Journal of Business and Society, 17(2), 365–374.
OECD. (1992). The Polluter-Pays Principle. In oecd.org (Vol. 81, Issue 92). OECD.
Palanca-Tan, R. (2015). Knowledge, Attitudes, and Willingness to Pay for Sewerage and Sanitation Services: A Contingent Valuation Survey in Metro Manila, Philippines. Journal of Environmental Science and Management, 18(2), 44–52.
Saptutyningsih, E. (2007). Faktor-faktor yang berpengaruh terhadap Willingness to Pay untuk Perbaikan Kualitas Air Sungai Code di Kota Yogyakarta. Jurnal Ekonomi & Studi Pembangunan, 8(2), 171–182. https://doi.org/10.18196/jesp.8.2.1519
Sizya, R. R. (2015). Analysis of Inter - Household Willingness to Pay for Solid Waste Management in Mwanza City, Tanzania. Journal of Resources Development and Management, 4(70), 57–67.
Sugiyono. (2013). Metode Penelitian Kuantitatif, Kualitatif, dan R&D (19th ed.). Alfabeta.
The World Bank and AusAID. (2013). East Asia Pacific Region Urban Sanitation Review: Indonesia Country Study. In World Bank (Issue September).
United Nations. (2017). Executive Summary - Wastewater The Untapped Resource.
USAID. (2006). Comparative Study: Centralized Wastewater Treatment Plants in Indonesia (Issue 497). http://pdf.usaid.gov/pdf_docs/Pnadl920.pdf
White, C. (2015). Understanding Water Markets: Public vs. Private Goods. Global Water Forum. https://globalwaterforum.org/2015/04/27/understanding-water-markets-public-vs-private-goods/
World Health Organization. (2019). Drinking-Water. WHO. https://www.who.int/news-room/fact-sheets/detail/drinking-water
Yulianti, L. I. M., & Ansusanto, J. D. (2002). Contingen Valuation Methods in Air Quality Valuation in Yogyakarta, Indonesia. Manusia Dan Lingkungan, IX(2), 61–68.
Rivaldo, Y. (2021). Leadership and Motivation to Performance through Job Satisfaction of Hotel Employees at D'Merlion Batam. The Winners, 22(1).
Rivaldo, Y., Wibowo, E. A., Hasibuan, R., Anggraini, D., & Arnesih, A. (2021). ANALISIS DAMPAK KESADARAN MEREK, PERSEPSI KUALITAS, DAN ASOSIASI MEREK TERHADAP KEPUTUSAN PEMBELIAN AIR MINUM DALAM KEMASAN. JURNAL MANAJEMEN, ORGANISASI DAN BISNIS (JMOB), 1(2), 149-157.
Rivaldo, Y., Oktavianti, O., & Ukhriyawati, C. F. (2020). Pengaruh Kepemimpinan, Kepuasan Kerja, Motivasi Dan Insentif Terhadap Kinerja Karyawan Pada PT. Bank Rakyat Indonesia (Persero) Tbk Cabang Nagoya Batam. In PROSIDING SEMINAR NASIONAL UNIVERSITAS ISLAM SYEKH YUSUF (Vol. 1, No. 1, pp. 330-340).
Nabella, S. D. (2021). Improve Consumer Purchasing Decisions Through Quality of Service, Promotion And Quality of Information At PT. Ng Tech Supplies. International Journal of Science, Technology & Management, 2(3), 880-889.
Nabella, S. D. (2021). ANALISA LAPORAN ARUS KAS SEBAGAI ALAT UNTUK MENILAI KINERJA KEUANGAN PERUSAHAAN PT KIMIA FARMA TBK. BENING, 8(2), 306-313.
diana Nabella, S. (2021). PENGARUH INSENTIF DAN BEBAN KERJA TERHADAP PRESTASI KARYAWAN DI BPR BARELANG MANDIRI BATAM. BENING, 8(1), 42.
Abstract View: 964
PDF Download: 624
