Do Social Capital Have Impact on Willingness to Pay for Waste Management? Evidence from Contingent Valuation Studies
Keywords:
Waste Management, Social Capital, Willingness to Pay, Contingent Valuation Method, Environment
Abstract
This study looks at the connection between people’s willingness to pay (WTP) for waste management services anf their social capital. The research utilitizes a linier regression model to examine the relationship between social capital and people’ desire to interact, making use of contigent valiation, a technique useful for assessing financial prices and preferences for non-market environmental assets. With an average WTP of IDR 17,000 (USD 1,09), the result show that 58.2% of the community is willing to pay for garbage management. The study finds a positive correlation between social capital and WTP, suggesting that strong community bonds, high levels of trust, and external family connections enhance the likelihood of supporting sustainable waste management initiatives. In addition to sociodemographic traits, the WTP's ability to manage waste is also impacted. Legislators and waste management experts should take note of these findings, which emphasize the need of fostering social capital to boost public involvement and support for sustainable waste management projects. Building trust, promoting community involvement, and establishing shared environmental principles can all contribute to the development of an environment that is conducive to effective waste management techniques. This study contributes to the expanding body of information about the socioeconomic drivers of waste management practices by highlighting the crucial role that social capital plays in creating WTP for waste management solutions.
References
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[24] S. Mulat, W. Worku, and A. Minyihun, "Willingness to pay for improved solid waste management and associated factors among households in Injibara town, Northwest Ethiopia," BMC Research Notes, vol. 12, no. 1, pp. 1–6, 2019. doi: https://doi.org/10.1186/s13104-019-4433-7.
[25] R. R. Nainggolan, "Analisis Willingness To Pay (Wtp) Retribusi Pengelolaan Sampah Di Kecamatan Cileunyi, Kabupaten Bandung," Jurnal Ilmu Pemerintahan Widya Praja, vol. 45, no. 1, pp. 33–36, 2019. doi: https://doi.org/10.33701/jipwp.v45i1.321.
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[29] E. Polyzou, N. Jones, K. I. Evangelinos, and C. P. Halvadakis, "Willingness to pay for drinking water quality improvement and the influence of social capital," J. SocioEcon., vol. 40, no. 1, pp. 74–80, 2011. doi: https://doi.org/10.1016/j.socec.2010.06.010.
[30] S. Pratiwi and K. Ri, "Willingness To Pay Masyarakat Dalam Mengurangi Dampak Sampah Rumah Tangga," Jurnal Ekonomi dan Bisnis, vol. 8, pp. 317–329, 2019.
[31] A. D. Rarastry, "Kontribusi Sampah Terhadap Pemanasan Global," Jurnal Lingkungan, vol. 2, pp. 1–45, 2016.
[32] E. Saptutyningsih, D. Diswandi, and W. Jaung, "Does social capital matter in climate change adaptation? A lesson from the agricultural sector in Yogyakarta, Indonesia," Land Use Policy, vol. 95, Oct. 2020. doi: https://doi.org/10.1016/j.landusepol.2019.104189.
[33] S. Sudirah, A. Susanto, S. Sumartono, and M. Syukur, "Hubungan Penguatan Modal Sosial, Mitigasi Bencana Banjir dan Peningkatan Produksi Pertanian," Equilibrium: Jurnal Pendidikan, vol. 8, no. 1, pp. 75–84, 2020. doi: https://doi.org/10.26618/equilibrium.v8i1.3094.
[34] G. D. Timang, I. Tjoli, and L. T. Wambrauw, "Persepsi masyarakat terhadap pengelolaan sampah dan kesediaan membayar (willingness to pay) dalam pelayanan pengelolaan sampah di Distrik Manokwari Barat," Cassowary, vol. 2, no. 1, pp. 1–17, 2019. doi: https://doi.org/10.30862/casssowary.cs.v2.i1.18.
[35] A. Togridou, T. Hovardas, and J. D. Pantis, "Determinants of visitors’ willingness to pay for the National Marine Park of Zakynthos, Greece," J. Environmental Conservation, vol. 60, pp. 308–319, 2006.
[36] S. Vassanadumrongdee and S. Kittipongvises, "Factors influencing source separation intention and willingness to pay for improving waste management in Bangkok, Thailand," Sustainable Environment Research, vol. 28, no. 2, pp. 90–99, 2018. doi: https://doi.org/10.1016/j.serj.2017.11.003.
[37] J. Wahyudi, H. T. Prayitno, and A. D. Astuti, "Pemanfaatan Limbah Plastik Sebagai Bahan Baku Pembuatan Bahan Bakar Alternatif," Jurnal Litbang: Media Informasi Penelitian, Pengembangan Dan IPTEK, vol. 14, no. 1, pp. 58–67, 2018. doi: https://doi.org/10.33658/jl.v14i1.109.
[38] Y. M. Wang and T. Elhag, "A comparison of neural network, evidential reasoning and multiple regression analysis in modelling bridge risks," Expert Syst. Appl., vol. 32, no. 2, pp. 336–348, 2007.
[39] S. L. Wong, N. Ngadi, T. A. T. Abdullah, and I. M. Inuwa, "Current state and future prospects of plastic waste as a source of fuel: A review," Renew. Sustain. Energy Rev., vol. 50, pp. 1167–1180, 2015.
[40] M. Woolcock and D. Narayan, "Social capital: Implications for development theory, research, and policy," World Bank Res., vol. 15, pp. 225–249, 2000.
[41] X. Zhongmin, C. Guodong, Z. Zhinqiang, S. Zhiyong, and L. J., "Applying contingent valuation in China to measure the total economic value of restoring ecosystem services in Ejina Region," Ecol. Econ., vol. 345–358, 2003.
[2] R. Afroz, K. Hanaki, and K. Hasegawa-Kurisu, "Willingness to Pay for Waste Management Improvement in Dhaka City, Bangladesh," Journal of Environmental Management, vol. 90, no. 1, pp. 492–503, 2014, doi: 10.1016/j.jenvman.2007.12.012.
[3] A. Agrawal, "The Community vs. The Market and the State: Forest Use in Uttarakhand in the Indian Himalayas," Journal of Agricultural and Environmental Ethics, vol. 9, no. 1, pp. 1–15, 1996.
[4] N. Aida, A. Ratih, and S. Astuti, "Willingness to Pay Pengelolaan Sampah di Pasar Tugu Kota Bandar Lampung," Jurnal Akuntansi dan Ekonomi, vol. 6, no. 3, pp. 19–31, 2021, doi: 10.29407/jae.v6i3.16545.
[5] S. Amalia, "Social Capital in Community-Based Waste Bank Management," Jurnal Ilmu Sosial, vol. 18, no. 2, pp. 93–108, 2020, doi: 10.14710/jis.18.2.2019.93-108.
[6] Y. Arnita and N. Aidar, "Analisis Willingness to Pay Masyarakat untuk Peningkatan Pengelolaan Sampah di Kota Banda Aceh," Jurnal Ilmiah Mahasiswa (JIM) Ekonomi Pembangunan Fakultas Ekonomi dan Bisnis Unsiyah, vol. 3, no. 4, pp. 595–605, 2018.
[7] A. Benyam, J. Rolfe, and S. Kinnear, "Willingness to Pay for a Domestic Food Waste Diversion Policy Option in Regional Queensland, Australia," Journal of Cleaner Production, vol. 270, 2020, doi: 10.1016/j.jclepro.2020.122485.
[8] M. Bezabih, A. D. Beyene, and L. Borga, "Social Capital, Climate Change and Soil Conservation Investment: Panel Data Evidence from the Highlands of Ethiopia," Change Economic Policy, vol. 135, pp. 1–31, 2013.
[9] K. S. Boateng, P. Agyei-Baffour, D. Boateng, G. N. K. Rockson, K. A. Mensah, and A. K. Edusei, "Household Willingness-to-Pay for Improved Solid Waste Management Services in Four Major Metropolitan Cities in Ghana," Journal of Environmental and Public Health, 2019, doi: 10.1155/2019/5468381.
[10] S. Bowles and H. Gintis, "Social Capital and Community Governance," The Economic Journal, vol. 112, pp. 419–436, 2002.
[11] S. Cruz, "Willingness to Pay for Watershed Protection by Domestic Water Users in Tuguegarao City, Philippines," unpublished, 2007.
[12] F. Fukuyama, Trust: The Social Virtues and the Creation of Prosperity, New York: Free Press, 1995.
[13] C. Grootaert and T. van Bastelaer, The Role of Social Capital in Development, Cambridge: Cambridge University Press, 2002, doi: 10.1017/CBO9780511492600.
[14] D. Gujarati, Basic Econometrics, 4th ed., New York: McGraw-Hill, 2009.
[15] T. C. Haab and K. E. McConnell, Valuing Environmental and Natural Resources: The Econometrics of Non-market Valuation, Edward Elgar Publishing, 2002.
[16] H. Ishihara and U. Pascual, "Social Capital in Community-Level Environmental Governance: A Critique," Ecological Economics, pp. 1549–1562, 2010, doi: 10.1016/j.ecolecon.2008.11.003.
[17] M. H. Jin and A. J. Shriar, "Exploring the Relationship Between Social Capital and Individuals’ Policy Preferences for Environmental Protection: A Multinomial Logistic Regression Analysis," Journal of Environmental Policy & Planning, vol. 15, no. 3, pp. 427–446, 2013.
[18] N. Jones et al., "Social Factors Influencing Perceptions and Willingness to Pay for a Market-Based Policy Aiming at Solid Waste Management," Resources, Conservation and Recycling, vol. 54, no. 9, pp. 533–540, 2010, doi: 10.1016/j.resconrec.2009.10.010.
[19] T. A. Kurniawan and M. F. Imron, "Solid Waste Management in Indonesia: Status and Strategic Actions," OP Conference Series: Earth and Environmental Science, vol. 245, 2019.
[20] P. Le Goffe, "The Benefits of Improvements in Coastal Water Quality: A Contingent Approach," Journal of Environmental Management, vol. 45, no. 4, pp. 305–317, 1995.
[21] K. Lestiani, D. R. Jati, and J. Jumiati, "Analisis Kesediaan Membayar (Willingness to Pay) Masyarakat Kecamatan Sambas Terhadap Biaya Retribusi Kebersihan," Jurnal Teknologi Lingkungan Lahan Basah, vol. 10, no. 2, p. 164, 2022, doi: 10.26418/jtllb.v10i2.56105.
[22] R. J. Lewicki and C. Wiethoff, "Trust, Trust Development, and Trust Repair," in Handbook of Conflict Resolution Theory and Practice, vol. 1, no. 1, pp. 86–107, 2000.
[23] T. Macias and K. Williams, "Know Your Neighbors, Save the Planet: Social Capital and the Widening Wedge of Pro-Environmental Outcomes," Environment and Behavior, vol. 1, pp. 1–30, 2014.
[24] S. Mulat, W. Worku, and A. Minyihun, "Willingness to pay for improved solid waste management and associated factors among households in Injibara town, Northwest Ethiopia," BMC Research Notes, vol. 12, no. 1, pp. 1–6, 2019. doi: https://doi.org/10.1186/s13104-019-4433-7.
[25] R. R. Nainggolan, "Analisis Willingness To Pay (Wtp) Retribusi Pengelolaan Sampah Di Kecamatan Cileunyi, Kabupaten Bandung," Jurnal Ilmu Pemerintahan Widya Praja, vol. 45, no. 1, pp. 33–36, 2019. doi: https://doi.org/10.33701/jipwp.v45i1.321.
[26] D. Narayan and M. F. Cassidy, "A dimensional approach to measuring social capital: Development and validation of a social capital inventory," Curr. Sociol., vol. 49, pp. 59–102, 2001.
[27] E. O. Nwosu, A. Orji, and D. Yuni, "Environmental hazards and waste management in Nsukka urban metropolis in Enugu State of Nigeria: How much are people willing to pay?" Environmental Hazards, vol. 17, no. 1, pp. 21–39, 2018. doi: https://doi.org/10.1080/17477891.2017.1340868.
[28] E. Ostrom, "Coping with tragedies of the commons," Annu. Rev. Polit. Sci., vol. 2, no. 1, pp. 493–535, 1999. doi: https://doi.org/10.1016/j.agsy.2011.12.003.
[29] E. Polyzou, N. Jones, K. I. Evangelinos, and C. P. Halvadakis, "Willingness to pay for drinking water quality improvement and the influence of social capital," J. SocioEcon., vol. 40, no. 1, pp. 74–80, 2011. doi: https://doi.org/10.1016/j.socec.2010.06.010.
[30] S. Pratiwi and K. Ri, "Willingness To Pay Masyarakat Dalam Mengurangi Dampak Sampah Rumah Tangga," Jurnal Ekonomi dan Bisnis, vol. 8, pp. 317–329, 2019.
[31] A. D. Rarastry, "Kontribusi Sampah Terhadap Pemanasan Global," Jurnal Lingkungan, vol. 2, pp. 1–45, 2016.
[32] E. Saptutyningsih, D. Diswandi, and W. Jaung, "Does social capital matter in climate change adaptation? A lesson from the agricultural sector in Yogyakarta, Indonesia," Land Use Policy, vol. 95, Oct. 2020. doi: https://doi.org/10.1016/j.landusepol.2019.104189.
[33] S. Sudirah, A. Susanto, S. Sumartono, and M. Syukur, "Hubungan Penguatan Modal Sosial, Mitigasi Bencana Banjir dan Peningkatan Produksi Pertanian," Equilibrium: Jurnal Pendidikan, vol. 8, no. 1, pp. 75–84, 2020. doi: https://doi.org/10.26618/equilibrium.v8i1.3094.
[34] G. D. Timang, I. Tjoli, and L. T. Wambrauw, "Persepsi masyarakat terhadap pengelolaan sampah dan kesediaan membayar (willingness to pay) dalam pelayanan pengelolaan sampah di Distrik Manokwari Barat," Cassowary, vol. 2, no. 1, pp. 1–17, 2019. doi: https://doi.org/10.30862/casssowary.cs.v2.i1.18.
[35] A. Togridou, T. Hovardas, and J. D. Pantis, "Determinants of visitors’ willingness to pay for the National Marine Park of Zakynthos, Greece," J. Environmental Conservation, vol. 60, pp. 308–319, 2006.
[36] S. Vassanadumrongdee and S. Kittipongvises, "Factors influencing source separation intention and willingness to pay for improving waste management in Bangkok, Thailand," Sustainable Environment Research, vol. 28, no. 2, pp. 90–99, 2018. doi: https://doi.org/10.1016/j.serj.2017.11.003.
[37] J. Wahyudi, H. T. Prayitno, and A. D. Astuti, "Pemanfaatan Limbah Plastik Sebagai Bahan Baku Pembuatan Bahan Bakar Alternatif," Jurnal Litbang: Media Informasi Penelitian, Pengembangan Dan IPTEK, vol. 14, no. 1, pp. 58–67, 2018. doi: https://doi.org/10.33658/jl.v14i1.109.
[38] Y. M. Wang and T. Elhag, "A comparison of neural network, evidential reasoning and multiple regression analysis in modelling bridge risks," Expert Syst. Appl., vol. 32, no. 2, pp. 336–348, 2007.
[39] S. L. Wong, N. Ngadi, T. A. T. Abdullah, and I. M. Inuwa, "Current state and future prospects of plastic waste as a source of fuel: A review," Renew. Sustain. Energy Rev., vol. 50, pp. 1167–1180, 2015.
[40] M. Woolcock and D. Narayan, "Social capital: Implications for development theory, research, and policy," World Bank Res., vol. 15, pp. 225–249, 2000.
[41] X. Zhongmin, C. Guodong, Z. Zhinqiang, S. Zhiyong, and L. J., "Applying contingent valuation in China to measure the total economic value of restoring ecosystem services in Ejina Region," Ecol. Econ., vol. 345–358, 2003.
Published
2024-08-19
How to Cite
Saptutyningsih, E., & Bilqis , N. (2024). Do Social Capital Have Impact on Willingness to Pay for Waste Management? Evidence from Contingent Valuation Studies. International Journal on Economics, Finance and Sustainable Development, 6(8), 225-234. https://doi.org/10.31149/ijefsd.v6i8.5319
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