ANALYSIS OF CITIZEN’S WILLINGNESS TO PAY (WTP) FOR WASTE MANAGEMENT QUALITY IMPROVEMENT IN MAKASSAR CITY USING CONTINGENT VALUATION METHOD

• Main Author: ZAKARIA, RASDIANA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30232
• Institution: Institut Teknologi Bandung

<p align="justify">The problem of waste management in Makassar city is caused by the insufficient amount of the solid waste service retribution for the operational costs and investment costs to improve the quality of solid waste management. Increasing the retribution is believed to be the solution to this problem. To determine the amount of benefits that can be managed from a source of public funds we must know the level of willingness to pay (WTP). One methods to determine the level of WTP is by using a contingent valuation method (CVM). The research also study the influence of the respondent’s attributes, such as gender, age, education, <br /> <br /> occupation, income, distance from the landfill, to the resulted WTP value using logit model. Respondentsts were offered a range of WTP value based on its management improvement scenario. The results of the research showed that the most influential factor is the concern of the respondents with a positive coefficient meaning that the higher the respondents concerns the greater the probability of willingness to pay as much as its coefficient value. The mean WTP for scenario 1 is Rp.19,535, for scenario 2 mean WTP is Rp. 20,523, scenario 3 is Rp. 21,395 and for scenario 4 mean WTP is Rp.21,860. More types that offered more increase the respondents’s WTP. From cost-benefit analysis shows that if income from 100% of the total households with the interest rate (i) = 12%, (i) = 15% and (i) = 18% with all the alternative retribution from Rp.10.000/household/month , Rp.15.000/ month and Rp.20.000/ month has NPV> 0 and BCR> 1 for all scenarios either from scenario 1 to scenario 4 so it is said to be economically viable. From sensitivity analysis shows that the change in the value of the discount rate is not too big influence on changes in the value of NPV and BCR, but the most sensitive effect on the changes in value of NPV and BCR are in terms of the income retribution. Retribution from 80% and 60% of the total households that are economically viable only in retribution Rp.15.000/KK/bulan and Rp.20.000/KK/bulan for scenarios 1 through 4 scenarios and if income from 30% of the total households overall retribution; Rp.10.000/KK/bulan - Rp.20.000/KK/bulan have NPV <0 and BCR <1 so that said not economically viable<p align="justify">