E-ISSN: 2963-3699
P-ISSN: 2964-0121
Homepage: Homepage: https://return.publikasikupublisher.com
This work is licensed under CC BY-SA 4.0
APPLICATION OF CONTINGENT VALUATION METHOD ON ECONOMIC
VALUATION OF CORAL REEF ECOSYSTEMS IN GILI GEDE MARINE
AREA, WEST NUSA TENGGARA
Muhammad Amri Akbar
1*
, Mansur Afifi
2
, Diswandi
3
Universitas Mataram, West Nusa Tenggara, Indonesia
1,2,3
1
ABSTRACT
The most obvious way to measure non-market value is to question individuals directly about their
willingness to pay for a good or service. This study evaluates the economic value of coral reef ecosystems
using the contingent valuation method (CVM) technique by measuring the willingness to pay the
community. Furthermore, this study aims to analyze the factors that influence the willingness to pay
(WTP) and the amount of the value of the community's willingness to pay (WTP) for the conservation of
coral reef ecosystems in Gili Gede waters. Sample determination in this study used purposive sampling
techniques with interview structured data collection techniques guided by questionnaires. Data analysis
used logistic regression for factors affecting WTP and multiple linear regression for factors affecting
WTP values. The results of this study found that the average WTP value of the community was Rp. 7,257
/ person in the mandatory scenario and Rp. 4,685 / person in the voluntary scenario. Factors that affect
the willingness to pay the community for coral reef conservation fees in the Gili Gede fishing area are
education and concern for the environment. For factors that affect the amount of the value of willingness
to pay the community for coral reef conservation fees in the Gili Gede fishing area in the mandatory
scenario are education, domicile and concern for the environment and in the voluntary scenario are
gender, education, domicile and concern for the environment.
Keywords: Gili Gede; Coral Reef Ecosystems; CVM; WTP; Influencing Factors
INTRODUCTION
Indonesia, which is the largest archipelagic country in the world, with a coastline of 95,000
km and is the second longest after Canada, where two-thirds (⅔) of the country's territory is ocean,
is known as a country with "mega biodiversity". Therefore, it is not surprising that Indonesia can
be considered the heart of world biodiversity, including coastal and marine biodiversity (Sabet &
Pungki Ari, 2022). With Indonesia's total sea area of around 5.8 million square kilometers (km²),
consisting of 2.3 million km² of archipelagic waters, 0.8 million km² of territorial waters, and 2.7
km² of Indonesian Exclusive Economic Zone waters (Apridar et al., 2011), so that the location
and position of the Indonesian archipelago is very important in the trade system and provider of
raw materials for both national and international communities.
Arcipelagic State is a characteristic of an archipelago country that has many islands
(Saksono, 2013). Small islands have strategic value for national economic development and
improving community welfare, they can be used as sources of inspiration, creation and innovation
that provide added economic value for the government and society, but on the other hand, small
islands are also vulnerable to environmental damage. caused by one of them is wrong policies
and management. According to Lasabuda (2013), in his research, marine and fisheries resource
management requires comprehensive, intigrated and targeted policies, considering that this area
has unique problems, potential and characteristics. So, a paradigm shift is needed in the
development of marine resources and fisheries on small islands.
Gili Gede water area is located at a coordinate position of 8° 44' 18.016" LS 115° 53'
12.041" E, is a small island area. Gili Gede itself is included in the island village area with 80
percent of the people living as fishermen, 10 percent as boatmen and 10 percent as other
livelihoods. Gili Gede's water area has clear waters and large potential marine and coastal
resources. These potentials include the potential for fisheries, coral reefs, seagrass beds,
mangroves and the beauty of marine scenery which is used as a tourism location. One of the most
famous tourist destinations in the waters of Gili Gede is diving and snorkeling which presents the
beauty of coral reef views.
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1214 Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
Coral reefs are one of the marine resources that have great benefits or services for humans
and the environment. The role and benefits of coral reef ecosystems consist of economic,
ecological and socio-cultural benefits (Zurba, 2019). Coral reefs have an important role for society
starting from direct benefits from coral reefs, namely as capture fisheries, tourism or recreation
and research activities, then indirect benefits, namely as coastal protection and to absorb carbon
content as well as the selected benefits of coral reef ecosystems as aquatic biodiversity
(Maharmingnastiti et al., 2015). The coastal resource ecosystem which functions as a spawning
ground, nursery ground and feeding ground for most fish makes the coral reef ecosystem a
resource that has many benefits and productivity high (Suparmoko et al., 2014). Considering the
importance of coral reef ecosystems which are valuable assets for the surrounding environment,
the existence and sustainability of the use of coral reef ecosystems must continue to be considered.
The many benefits produced by coral reef ecosystems cause a high level of dependence on
these resources so that the use of coral reefs has increased from year to year, in addition to
bringing benefits to humans, this increase in utilization threatens the sustainability of coral reefs
themselves, including in the waters of Gili Gede. Resource exploitation activities, especially coral
reefs, are still carried out massively without taking into account sustainability aspects. This is due
in addition to socio-economic conditions, namely the problem of poverty and underdevelopment,
also by the assumption that coral reef resources are common resources so that everyone has access
to exploit them (open access) in order to fulfill personal interests (self interest) (Afifi, 2011).
The importance of the role and function of coral reefs in Gili Gede waters must be followed
by public awareness as parties who utilize and sustainable coastal management policies, because
the problem that is often faced is that natural resources cannot be transacted in the market like
other general goods so that they do not have market prices, this causes the public's perspective on
coastal and marine resources, especially coral reef ecosystems tends to be worthless. So that the
coral reefs in the Gili Gede waters show conditions with the status of coral reefs tending to be
badly damaged due to fishing activities and pressures from land which are thought to be several
factors that influence the poor condition of the coastal ecosystem Buhari et al., (2021).
To be able to provide information, awareness and understanding to the community as
utilizing parties and policy makers about the importance of the existence of coral reef ecosystems
in Gili Gede waters both as economic potential and for the preservation of nature and the
environment as well as for the benefit of sustainable management and use, it is necessary to
conduct an economic valuation of coral reef ecosystems in Gili Gede water areas. Resource
economic valuation plays an important role as a comprehensive instrument in providing price tags
for the existence of coral reef ecosystem goods and services (Mahakena et al., 2021; Putri et al.,
2009). Economic valuation can provide an overview of the condition and amount of quantitative
value possessed by coral reef ecosystem resources so that the quantitative picture and value of
coral reef ecosystem resources can be a guide in efforts to manage and utilize in a directed,
effective and efficient manner and in accordance with the principles of sustainable development
(Rani et al., 2020).
Based on this, the author intends to conduct research aimed at conducting economic
valuation of coral reef ecosystems in Gili Gede waters by applying the contingent valuation
method (cvm) Gumilar (2019); Talakua et al., (2019); Ureta et al., (2014); Solihin et al., (2019);
(Fauzi, 2010); Shah et al., (2017); (Siregar & Istiqomah, 2022); Obeng & Aguilar (2021); (Laurans
et al., 2013); (Tamsah & Nessa, 2019); (Marre et al., 2015). The reason for using the contingent
valuation method (cvm) method is based on this method can be used to estimate the economic
value of any thing including the value of existence that is not connected with usefulness (Lipton
et al., 1995).
This study the author analyzes the factors that influence individual preferences on
willingness to pay and the amount of value willing to be paid for conservation activities to
maintain the existence and sustainability of coral reef ecosystems in Gili Gede waters. Lariviere
dkk., (2014) states that familiarity with economic decisions can significantly influence how
economic decisions are made including in willingness to pay. Such quantification would be useful
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1215
Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
for designing strategic campaigns for coral reef conservation and for effectively raising awareness
of this type of public good (Imamura et al., 2020).
RESEARCH METHOD
This type of research is quantitative descriptive research with sunber data, which is to be
sourced from communities who receive or feel the benefits of coral reef ecosystems in Gili Gede
waters either directly or indirectly. While the skunder data is sourced from the Fisheries and
Marine Service of West Nusa Tenggara Province & Gili Gede Village Government, Sekotong
District, West Lombok Regency.
The study population is a community that utilizes coral reef ecosystem resources either
directly or indirectly from Gili Gede Indah Village. Sample determination using purposive
sampling techniques with sample criteria and characteristics, namely at least 18 years old and a
maximum of 60 years old, getting direct or indirect benefits from the existence of coral reef
ecosystems, having a profession that has a relationship with coral reefs both directly and indirectly
(fishermen, tourism sector workers, tourism business actors), and respondents were in the Gili
Gede water area when it was done research. The number of samples in this study was 91
respondents.
Data collection in this study used a survey method with data collection techniques
structured face-to-face interviews directly guided by questionnaires. The questionnaire used is
prepared based on the approach – valuation measures used. According to Lipton et al., (1995) The
most obvious way to measure non-market value is to question individuals directly, this can be
done with surveys or with a questionnaire-based approach to the valuation of non-market goods
and services. The resulting value will depend largely on the nature of the market construction
(hypothesis or simulation) of the goods or services described in the survey scenario. So it can be
concluded that the quality of research results is very dependent on the survey scenario used in the
questionnaire. The question scenario in a valid WTP CV should include three components: (1) a
detailed description of the resources to be assessed, including initial and alternative conditions of
the hypothetical scenario; (2) the form and frequency of payments, which include options such as
higher income taxes, increases in utility bills, and payments to special trust funds; and (3) how
respondents were asked their WTP (e.g. open-ended questions, payment cards, or referendums on
specific dollar amounts) (Kotchen & Reiling, 2000). In this study, the survey scenario was structured
as follows:
• Part one: Get respondent attributes.
The first part in this research questionnaire is to obtain the attributes of respondents. The
attributes collected from respondents include name, age, gender, marital status, education
level, occupation, income per month, expenses per month, number of dependents and
address.
• Part two: Provide respondents with information about the benefits of coral reef ecosystems.
Good information can influence important economic decisions, including willingness to
pay for an item. In this study, the information provided to respondents was in the form of
a brief explanation of the benefits of coral reef ecosystems. Imamura et al. (2020) states
that more concise, easy-to-understand information and the provision of detailed
information are more effective ways to increase willingness to pay and reduce negative
attitudes towards conservation efforts.
• Part three: Provide information to respondents about the condition of coral reefs in Gili
Gede waters
An understanding of the information provided about the impact of coastal and marine
resource exploitation activities on biodiversity contributed greatly to the variation in
respondents' willingness to pay (Spash et al., 2009). So to provide more detailed
information in this study will be given to respondents about the current condition of coral
reefs in Gili Gede waters.
• Part four: Asking about the level of concern for the environment
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1216 Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
Concern for the environment can construct a willingness to pay. The relationship between
attitudes and behaviors has given rise to interest in environmental attitudes as predictors of
environment-based actions and participation decisions. These preferences then serve as
criteria for assessing the appropriateness of certain behaviors. In this study, concern for the
environment was measured based on the index of concern for the environment.
Respondents are given questions that can provide an overview of the level of respondents'
concern for the environment.
• Section five: Provide statements to reduce hypothesis bias
One of the disadvantages of the contingent valuation method (cvm) technique uis the
frequent occurrence of hypothesis bias (Lipton et al., 1995). Given technical difficulties
such as hypothetical bias in measuring non-market resources, some authors doubt whether
willingness to pay can be precisely measured (Frey & Pirscher, 2019). In CVM studies, where
respondents are asked to express their maximum willingness to pay, it is possible to
overestimate or understate their willingness to pay depending on the results the surveyor
wants to see materialize (Sandorf et al., 2016). So as to reduce hypothesis bias, a cheap talk
is given as an introduction to ask the willingness to pay respondents. Cheap talks are
statements to encourage honest responses from respondents (e.g., citing that previous
studies tended to overestimate WTP due to its hypothetical nature; reminding them that
although the situation is hypothetical, they should express responses as if they were faced
with a real situation) (Harder et al., 2006). Cheap talks seem to be one of the most
successful and proven efforts to be potentially successful (Hensher, 2010).
• Part six: Asking about willingness to pay.
Respondents will first be given a hypothetical scenario contained in the questionnaire
before asking about willingness to pay for coral reef ecosystem resources. The provision
of this hepotetic scenario aims to make respondents believe that the money they spend is
used for the benefit of natural resource management (Brouwer et al., 2016). Hypotheses
about coral reef ecosystem management plans in Gili Gede's water areas were immediately
included with questions about willingness to pay for a response. This dichotomous option
is given to determine the willingness to pay the respondent, if the respondent answers yes
then the question is continued but if the respondent answers no then the interview is not
continued.
• Section seven: Offer the value of willingness to pay and WTP collection scheme
After asking about the willingness to pay, the next is to offer the amount of the willingness
to pay which is directly included with the scenario of collecting coral reef dues as payment
for environmental services (PES). The concept of PES is based on Coasean economic
theory which emphasizes the creation of voluntary or market-based transactions for
ecosystem services and is based on Pigouvian economic theory that allows government
intervention such as through regulations, taxes, or subsidies (Diswandi,2017) . So in this
study the payment of environmental services in the form of coral reef conservation
contributions uses mandatory scenarios (mandatory) and voluntary scenarios (voluntary).
Value bidding is done using the game bidding format method where respondents are asked
whether they are willing to pay a certain amount of money proposed as a starting point by
giving a choice of dichotomous choice or dichotomous valuation, yes or no, or agree and
disagree. If the answer is yes then the amount of the bid value will be increased to the
agreed level. If the answer is no, the bid value is lowered until the agreed amount (Nababan
& Simanjuntak, 2008). The WTP starting point in the study was set at IDR15,000-
The data analysis method in this study uses logistic regression to analyze the factors that
influence the willingness to pay and multiple linear regression to analyze the factors that affect
the amount of the value of willingness to pay by looking at econometric parameters, namely
coefficient determination, simultaneous influence and partial influence of each variable.
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1217
Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
1. Logistic regression
L
i
= Opportunities for people to be willing or unwilling to participate (1 = willing to pay, 0 = not
willing to pay)
= Constanta
= Regression Coefficients
X
1
= Age
X
2
= Gender
X
3
= Marital Status
X
4
= Education Level
X
5
= Work
X
6
= Income
X
7
= Number of dependents
X
8
= Expenditure
X
9
= Address
X
10
= Concern for the environment
2. Double linear regression
WTP =
WTP = value of willingness to pay
= Constanta
= Regression Coefficients
X
1
= Age
X
2
= Gender
X
3
= Marital Status
X
4
= Education Level
X
5
= Work
X
6
= Income
X
7
= Number of dependents
X
8
= Expenditure
X
9
= Address
X
10
= Concern for the environment
E = Error
RESULT AND DISCUSSION
From the interview process that has been conducted, it was found that the characteristics
of respondents in the study included the majority of respondents aged 36-50 years with a total of
43%, male types with a total of 60%, married status as much as 91%, elementary school education
with a total of 38%, the majority of work as entrepreneurs by 37%, with the majority of
respondents' income amounting to IDR 2.000,000 –IDR 2.900,000 as much as 40%, and the
majority of respondents' expenses amounted to IDR 3.000,000 – IDR 3.900,000 with an amount
of 33%, with 3 dependents amounting to 33%, domiciled the majority of respondents came from
Gili Gede Indah village with a number of 79% and concern for the environment the majority of
respondents had an index of concern for the environment with a very caring level of 56%,
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1218 Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
Analysis of Willingness to Pay Society
After the respondents gave a statement that they would answer with the actual situation,
respondents were then asked about their willingness to pay by being given a hypothetical market
scenario to ensure that the money they would pay would be fully used for coral reef management
in Gili Gede's territorial waters. The majority of respondents gave a "yes" compared to a "no"
when asked about willingness to pay coral reef conservation dues. Of the 76.9% of respondents
who answered "yes" the majority of respondents were aged 36 – 50 years, male, with married
status, elementary school education level, with work status as fishermen, with an income of IDR
2,000,000 – IDR 2,900,000 and expenses of IDR 3,000,000 – IDR 3,900,000, the number of
dependents was 3 people, located in Gili Gede Indah village and with an environmental concern
index with a very caring status. Respondents who answered "yes" reasoned that as a community
must participate in efforts to maintain coral reef ecosystems so that the benefits of the existence
of coral reefs can continue to be felt and enjoyed both for them now and for future generations.
The remaining 23.1% of respondents answered "no" the majority of respondents aged 36
– 50 years, female, with married status, high school education level, with employment status as
entrepreneurs, with an income of IDR 2.000.000 – IDR 2.900.000 and expenses of IDR 3.000.000
– IDR 3.900.000 the number of dependents as many as 3 and 2 people, located in Gili Gede Indah
village and with an environmental concern index with caring status. Respondents who answered
"no" are willing to pay gave reasons that conservation activities and safeguarding natural
resources, especially coral reef ecosystems, are the authority and responsibility of the government
and the community is positioned to support every effort made by the government but not by
charging conservation fees to the community.
Furthermore, the independent variables used in the research model were processed and
analyzed using logistic regression with the aim of testing the hypotheses proposed in the study,
namely age, gender, marital status, education, occupation, income, expenditure, number of
dependents, address and concern for the environment affect the willingness to pay the community
for coral reef conservation dues in Gili Gede water areas. The logistic regression analysis is as
follows:
a. Determination Test
Table 1 Test determination
Step
-2 Log likelihood
Cox & Snell R Square
Nagelkerke R Square
1
69.564
.271
.410
source: output spss
Based on the process that has been carried out, the value of Nagelkerke R Square is 0.410.
This means that the independent variable is able to explain the dependent variable by 41 percent,
while 59 percent is explained by other variables outside the model. For simultaneous tests, the
significance value of simultaneous tests is 0.001 where the value is smaller than alpha 0.05 (0.000
< 0.05) so that it can be interpreted that the independent variables used in the model together
significantly affect the willingness to pay the community for the conservation of coral reef
ecosystems in the Gili Gede area.
b. Simultaneous influence test
Table 2 Test simultaneously
Chi-square
df
Sig.
Step 1
Step
28.753
10
.001
Block
28.753
10
.001
Model
28.753
10
.001
(source: output spss)
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1219
Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
Based on the process that has been carried out, it shows that the significance value of
simultaneous tests is 0.001 where the value is smaller than alpha 0.05 (0.000 < 0.05) so that it
can be interpreted that the independent variables used in the model together significantly affect
the willingness to pay the community for the conservation of coral reef ecosystems in the Gili
Gede area.
a. Partial influence test and model interpretation.
Tabel 3 Partial test
B
Sig.
Exp(B)
Information
Age
.046
.330
1.048
Insignificant
Gender
1.068
.321
2.909
Insignificant
Marital status
1.578
.315
4.844
Insignificant
Education
.610
.091
1.841
Signific alpha 0.1
Work
-.213
.370
.808
Insignificant
Income
.000
.856
1.000
Insignificant
Expenditure
.000
.707
1.000
Insignificant
Number of dependents
-.211
.398
.809
Insignificant
Address
-1.135
.302
.321
Insignificant
Environmental concern
.351
.011
1.421
Signific alpha 0.05
(Source: primary data, processed)
From the logistic regression analysis that has been carried out, the variables age, gender,
marital status, occupation, income, expenditure, number of dependents and domicile have nilia
sig. more than APLHA 0.1 so that these variables do not significantly affect the willingness to
pay coral reef conservation dues. While the education variable has a sig of 0.091 which is smaller
than alpha 0.1 and the variable of concern for the environment has a Sig value. 0.0113 is smaller
than alpha 0.05 so that the variables of education and concern for the environment significantly
affect the willingness to pay coral reef conservation contributions. So based on this, the variables
of education and concern for the environment are factors that affect the willingness to pay coral
reef conservation fees based on the resulting significance which is further explained as follows:
• Education
The education variable has a Sig value of 0.091 where the value is smaller than alpha 0.1
(significance 10%) so that the significant educational variable affects the willingness to pay
respondents at a 90% confidence level. The education variable also has a positive coefficient with
an Exp(b) value (odds ratio) of 1,840 which can be interpreted that the education variable has a
relationship and has a positive influence on the willingness to pay respondents. Where if the
higher the level of education of respondents, it will increase willingness to pay coral reef
conservation fees. An increase in education by 1% can increase willingness to pay by 1,840%
cateris paribus.
This is in line with the results of research conducted by Arista & Saptutyningsih (2020) who
found that education had an effect on willingness to pay. Likewise with research conducted by
Adamu dkk., (2015) which found that education had a positive relationship with willingness to
pay whereas someone with a higher education was more likely to pay. This can be caused by the
higher the level of education, the greater public awareness and concern about the benefits of
maintaining sustainability and environmental quality. This is in accordance with the field facts
found by researchers where respondents with tertiary education backgrounds provide more
arguments about the importance of preserving coral reef ecosystems and the importance of
community participation in these activities compared to respondents with primary and secondary
school education levels.
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1220 Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
• Concern for the environment.
The variable of concern for the environment has a Sig. value of 0.011 where the value is
smaller than alpha 0.05 (significance 5%) so that the variable concern for the environment
significantly affects the willingness to pay respondents with a confidence level of 95%. The
variable of concern for the environment also has a positive coefficient and an Exp(b) value (odds
ratio) of 1,421 which can be interpreted that concern for the environment has a relationship and
has a positive influence on the willingness to pay respondents. Where if the higher the concern
for the environment of respondents, it will be able to increase the willingness to pay coral reef
conservation dues. A 1% increase in environmental awareness would increase willingness to pay
by 1,421% cateris paribus.
This is in line with what was developed by Vicente et al. (2021) that participation in
community activities affects the tendency of individuals to engage in collective activities of
preserving the environment and their willingness to pay for environmental protection. This is also
in accordance with field facts found by researchers where people who are directly related to
marine resources and live in coastal areas have a good awareness of the importance of protecting
the environment and the resources in it. This attitude can be seen from the agreed rules in using
and utilizing existing resources.
Analysis of the Value of Willingness to Pay the Community
As many as 73.9% of respondents who were willing to participate and pay dues for the
coral reef ecosystem conservation agenda in Gili Gede waters were then asked how much they
were willing to pay. It is possible that respondents are not consistent with their commitment to
choice during real-life surveys, so as to reduce the potential for such bias, especially in the amount
of willingness to pay that may be exaggerated, in asking how much value respondents are willing
to pay, given a means of collecting conservation contributions. In a number of studies in
developed countries found evidence that the means of payment affect WTP for public goods while
correcting biases that can occur (Harder et al., 2006). In this study, the means of collecting coral
reef conservation dues are mandatory and voluntary schemes. With the means of collecting coral
reef conservation dues, both mandatory and voluntary schemes are included with an offer of IDR
15.000 as a starting point for the amount of contributions paid by respondents. The WTP value
of each scheme for collecting coral reef conservation dues is as follows:
Table 4 Respondent’s WTP Value
Payment scheme
BID WTP
Total (%)
WTP average
Mandatory
IDR15.000
4%
Rp.7.257
IDR12.000
1%
IDR11.000
1%
IDR10.000
21%
IDR 8.000
2%
IDR 7.500
2%
IDR 7.000
1%
IDR6.000
5%
IDR 5.000
36%
IDR 1.000
2%
Voluntary
IDR10.000
12%
Rp.4.685
IDR 5.000
29%
IDR 4.000
3%
IDR 3.000
11%
IDR 2.500
11%
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1221
Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
IDR 2.000
11%
(Source: Primary data, processed)
Of the 70 respondents who stated the amount of willingness to pay (WTP), in the
mandatory scheme the majority of respondents as many as 36% stated WTP of Rp. 5,000 then as
much as 21% of Rp. 10,000, as much as 5% of Rp. 6,000, as much as 4% of IDR 15,000, as much
as 2% in IDR 8,000, IDR. 7,000 and IDR 1,000 and 1% of Rp. 12,000, IDR 11,000 and Rp. 7,500.
The highest WTP value at the mandatory collection facility is IDR 15,000 while the lowest WTP
value is IDR 1,000 with an average WTP value of IDR 7,257. As for the voluntary scheme, the
majority of respondents as many as 29% stated WTP of IDR 5,000, then as much as 12% of IDR
10,000, then as many as 11% stated WTP of IDR 3,000, IDR 2,500 and IDR 2,000 and as much
as 3% of IDR 4,000. The highest WTP value in voluntary collection facilities is Rp. 10,000 while
the lowest WTP value is IDR 2,000 with an average WTP value of IDR 4,671.
Overall, all respondents indicated their WTP at different price levels which was included
with the reason why respondents were willing to pay some money to preserve coral reef
ecosystems in Gili Gede's waters. The varying WTP scores of respondents indicate that
respondents have different preferences in assessing coral reef ecosystems, this can be because
each individual has a series of personal values held with different ranks and weights (Kotchen &
Reiling, 2000). Although the WTP value obtained from both coral reef contribution collection
schemes varied, it was found that the majority of respondents stated that the WTP value of both
mandatory and voluntary schemes was Rp. 5,000. The amount of WTP value, both the average
value and the most value chosen by respondents, can be information in the formulation of coral
reef management policies in Gili Ged waterse.
Factors Influencing the WTP Size of Society
From the means of collecting coral reef conservation dues, namely mandatory schemes
and voluntary schemes, the amount of willingness to pay respondents was obtained. The amount
of WTP value is then analyzed factors that affect the amount of WTP value of respondents. WTP
analysis provides an opportunity to study the content and context validity of a research survey
(Kamri, 2013) (Sari & Muslimah, 2014). By using multiple linear regression, the factors that affect
the WTP amount of respondents from each contribution collection facility are analyzed by
making a model that is arranged based on the WTP magnitude function. The functions are as
follows:
Model 1:
WTP Mandatory Mass (Y1) = f (gender, marriage, education, income, address,
environmental concern index, occupation, expenses, number of dependents, age)
Model 2:
Voluntary WTP (Y2) = f (gender, marriage, education, income, address, environmental
concern index, occupation, expenses, number of dependents, age)
The results of multiple lilnear regression analysis of each model are as follows:
Table 5 Econometric parameters of double regression results
Parameter
Mandatory
Voluntary
Coefesien
standardized
Significan
t
Coefesien
standardized
Significant
constant
.054
.085
Age
0.127
.355
0.041
.997
Gender
0.213
.146
0.181
.064*
Marital status
0.153
.224
0.072
.484
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1222 Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
(Source : primary data, processed)
Based on the econometric parameter table of each, the relationship and influence of each
independent variable on the dependent variable can be explained so that factors that affect the
amount of the value of the willingness to pay respondents for coral reef conservation
contributions in Gili Gede waters both from mandatory and voluntary schemes, which are
explained as follows:
a. Coefficient Determination.
In the mandatory scheme model, the R-Squared value is 0.323, which means that the
ability of the independent variable to influence the dependent variable in the mandatory
scheme model is 32.337% and as much as 67.66% is influenced by other variables outside the
study. Furthermore, in the voluntary scheme model, the R-Squared value is 0.226, which
means that the ability of the independent variable to influence the dependent variable in the
voluntary scheme is 22.6% and 77.4% is influenced by other variables outside the study. With
the R-Squared value generated from each model, both the mandatory scheme of 32.337% and
the voluntary scheme of 22.6%, it can be stated that these values are good enough in CVM
studies (Spash et al., 2009). This is also in accordance with the opinion of Mitchell and Carson
who state that the value of R-square in natural resource and environmental economics research
can be tolerated up to 15% (Sutopo et al., 2016).
b. Simultaneously test (f-statistic)
In the mandatory scheme model, the prob value (F-statistic) is 0.0003 where the value
is smaller than alpha 0.05 (0.0003< 0.05) so that it can be interpreted that the independent
variables in the mandatory scheme model are equally significant (99% confidence level)
affects the amount of willingness to pay respondents for coral reef conservation contributions
in Gili Gede waters. Similarly, with the voluntary scheme model, the prob value (F-statistic)
is 0.0005 where the value is smaller than alpha (0.0005< 0.05) so that it can be interpreted
that the independent variables in the voluntary scheme model are equally significant (99%
confidence level) affect the amount of willingness to pay respondents for coral reef
conservation contributions in Gili Gede waters. So it can be concluded that the independent
variable in the model in both the mandatory scheme and the voluntary scheme both
significantly affect the willingness to pay, but when viewed from the level of significance of
the mandatory scheme has a smaller prob value (F-statistic) than the voluntary scheme (0.0003
< 0.0005)
Education
0.354
.012**
0.237
.003***
Work
-0.096
.493
0.076
.246
Income
0.102
.472
0.078
.393
Expenditure
0.012
.939
0.053
.621
Number of dependents
-0.022
.831
0.165
.859
Address
-0.219
.060*
-0.194
.032**
Environmental concern
0.336
.005***
0.324
.018**
R-squared
0.323
0.310
F-Statistic
3.823
3.597
Sig (F-statistic)
0.000301
0.018
Information:
* = significant at 10% alpha
** = significant at alpha 5%
*** = significant at alpha 1%
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1223
Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
c. Partial test (T Test)
From the multiple lienar regression analysis that has been carried out, it was found that
in the mandatory scheme the variables of age, sex, marital status, occupation, income,
expenditure and number of dependents have sig values. above alpha 0.05 so that the variables
– variebal do not significantly affect the amount of nilia willingness to pay respondents. While
the variables of education, address and concern for the environment have GIS values. below
alpha 0.1 so that these variables significantly affect the amount of the value of willingness to
pay respondents.
In the voluntary scheme, the variables of age, marital status, occupation, income,
expenditure and number of dependents have sig values. above alpha 0.05 so that the variables
– variebal do not significantly affect the amount of nilia willingness to pay respondents. While
the variables of gender, education, address and concern for the environment have GIS values.
below alpha 0.1 so that these variables significantly affect the amount of the value of
willingness to pay respondents.
From the two schemes, namely the mandatory scheme and the voluntary scheme, the same
variables significantly affect the amount of the value of willingness to pay, namely education,
address and concern for the environment. So based on this, factors are obtained that affect the
amount of the value of willingness to pay coral reef conservation contributions based on the
significance of the resulting influence.
Furthermore, the factors that affect the amount of the value of willingness to pay are
explained as follows:
• Address
The variable of respondent's domicile in the mandatory scheme and voluntary scheme
significantly affects the amount of the value of willingness to pay with a level of trust above 90%
and has a negative relationship and influence on the amount of respondent's WTP value where
the increasing distance of the respondent's residence from the conservation site, namely the Gili
Gede water area, will reduce the amount of WTP value coral reef conservation dues. This is
reinforced by research conducted by Iqbal & Mozahid, 2022) that the respondent's residential
address is negatively related to the amount of WTP given by the respondent. Respondents who
live in Gili Gede have a sense of ownership of the sunber of coral reef power in the area which
has an influence on their attitudes and the way they assess coral reefs which is reflected in the
amount of WTP given and Gili Gede residents are willing to provide a large WTP compared to
respondents who are not from Gili Gede.
• Education
The respondent's education variable in the mandatory scheme and voluntary scheme
significantly affects the amount of the value of willingness to pay with a level of confidence
above 95% and has a positive relationship and influence on the amount of respondent's WTP
value where the higher the respondent's education level can increase the amount of WTP value
coral reef conservation dues. This is in line with research conducted by Xiong et al. (2018) which
states that the level of education is positively correlated significantly with the size of the
respondent's WTP with the explanation that the population who have a higher and stronger level
of education can form perceptions and sensitivity to a good ecological environment. This is in
accordance with the fact that respondents with a good level of education are more excited and
passionate when discussing environmental issues, especially coral reef ecosystems.
• Concern for the environment
The variable of concern for the respondent's environment in mandatory schemes and
voluntary schemes significantly affects the amount of the value of willingness to pay with a level
of trust above 95% and has a positive relationship and influence on the amount of respondent's
WTP value where the higher the concern for the environment, it can increase the amount of WTP
value coral reef conservation dues. This finding is in line with research conducted by Sadikin et
al. (2017) that the variables of knowledge and concern of respondents for a natural resource are
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1224 Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
positively related to the amount of WTP given. Marbuah in Vicente et al. (2021) said that
participation in membership of environmental organizations and donating money to
environmental organizations increases the likelihood of agreeing to higher environmental taxes.
CONCLUSION
Based on the research that has been carried out, the following conclusions can be drawn:
1) The willingness of the community to pay coral reef conservation fees in the Gili Gede fishing
area is significantly influenced by the variables of education and concern for the environment, so
it can be stated that the factors that affect the willingness to pay the community for coral reef
conservation activities in Gili Gede waters are education and concern for the environment. 2) The
amount of willingness to pay the community for coral reef conservation fees in Gili Gede waters
is on average Rp. 7,257/person/month in the mandatory scheme, and Rp. 4,685/person/month in
the voluntary scheme. 3) The amount of the value of willingness to pay the community for coral
reef conservation fees in the Gili Gede fishing area is significantly influenced by variables of
education, domicile and concern for the environment in the mandatory collection scenario and
variables of gender, education, domicile and concern for the environment in the voluntary
scenario. So that from the two scenarios used to obtain the WTP value, the factors that affect the
amount of the value of the willingness to pay the community for the conservation of coral reef
ecosystems in the Gili Gede water area are gender, education, domicile and concern for the
environment.
REFERENCES
Adamu, A., Yacob, R., And, R., & Hashim, R. (2015). Factors Determining Visitors’ Willingness
to Pay for Conservation in Yankari Game Reserve, Bauchi, Nigeria. In Journal of
Economics and Management (Vol. 9). Google Scholar
Afifi, M. (2011). Kontribusi Kesalehan Ritual dan Kondisi Sosial Ekonomi Keluarga terhadap
Perilaku Merusak Ekosistem Terumbu Karang. Jurnal Ekonomi Dan Pembangunan
Indonesia, 11(2), 135–151. https://doi.org/10.21002/jepi.v11i2.186 Google Scholar
Apridar, A., Karim, M., & Suhana, S. (2011). Ekonomi Kelautan dan Pesisir (1st Ed). Graha
Ilmu. Google Scholar
Arista, S. A., & Saptutyningsih, E. (2020). Estimation of Willingness to Pay for Development and
Preservation of Liwa Botanical Garden Indonesia. Journal of Economics Research and
Social Sciences, 4(2), 118–128. https://doi.org/10.18196/jerss.v4i2.10103 Google Scholar
Brouwer, R., Brouwer, S., Eleveld, M. A., Verbraak, M., Wagtendonk, A. J., & van der Woerd,
H. J. (2016). Public willingness to pay for alternative management regimes of remote marine
protected areas in the North Sea. Marine Policy, 68, 195–204.
https://doi.org/10.1016/j.marpol.2016.03.001 Google Scholar
Buhari, N., Himawan, M. R., & Jefri, E. (2021). Kondisi Terumbu Karang di Perairan Gili Gede,
Sekotong Lombok Barat. Lesser Sunda, 1(4), 24–28. Google Scholar
Diswandi, D. (2017). A hybrid Coasean and Pigouvian approach to Payment for Ecosystem
Services Program in West Lombok: Does it contribute to poverty alleviation? Ecosystem
Services, 23, 138–145. https://doi.org/10.1016/j.ecoser.2016.12.005 Google Scholar
Fauzi, A. (2010). Ekonomi Sumber Daya Alam dan Lingkungan: Teori dan Aplikasi (3 Rd
Edition). PT Gramedia Pustaka Utama. Google Scholar
Frey, U. J., & Pirscher, F. (2019). Distinguishing protest responses in contingent valuation: A
conceptualization of motivations and attitudes behind them. PLoS ONE, 14(1).
https://doi.org/10.1371/journal.pone.0209872 Google Scholar
Gumilar, I. (2019). Faktor-Faktor Sosial Ekonomi Yang Mempengaruhi Willingness To Pay
Masyarakat Dalam Penentuan Nilai Sumberdaya Terumbu Karang Di Kawasan Konservasi
Perairan Pulau Biawak Provinsi Jawa Barat. Sosiohumaniora, 21(3).
https://doi.org/10.24198/sosiohumaniora.v21i3.21371 Google Scholar
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1225
Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
Hafiz Iqbal, M., & Nur Mozahid, M. (2022). Valuing conservation of the Sundarbans mangrove
forest ecosystem. Trees, Forests and People, 9. https://doi.org/10.1016/j.tfp.2022.100278
Google Scholar
Harder, D. S., Labao, R., & Santos, F. I. (2006). Suite 405, The Tower, Emerald Sq. In J.P. Rizal
cor. P. Tuazon Sts., Proj (Vol. 4). Google Scholar
Hensher, D. A. (2010). Hypothetical bias, choice experiments and willingness to pay.
Transportation Research Part B: Methodological, 44(6), 735–752.
https://doi.org/10.1016/j.trb.2009.12.012 Google Scholar
Imamura, K., Takano, K. T., Kumagai, N. H., Yoshida, Y., Yamano, H., Fujii, M., Nakashizuka,
T., & Managi, S. (2020). Valuation of coral reefs in Japan: Willingness to pay for
conservation and the effect of information. Ecosystem Services, 46, 101166.
https://doi.org/10.1016/j.ecoser.2020.101166 Google Scholar
Kotchen, M. J., & Reiling, S. D. (2000). Environmental attitudes, motivations, and contingent
valuation of nonuse values: a case study involving endangered species. Ecological
Economics, 32(1), 93–107. https://doi.org/10.1016/S0921-8009(99)00069-5 Google
Scholar
Lariviere, J., Czajkowski, M., Hanley, N., Aanesen, M., Falk-Petersen, J., & Tinch, D. (2014).
The value of familiarity: Effects of knowledge and objective signals on willingness to pay
for a public good. Journal of Environmental Economics and Management, 68(2), 376–389.
https://doi.org/10.1016/j.jeem.2014.07.004 Google Scholar
Lasabuda, R. (2013). Pembangunan Wilayah Pesisir dan Laut dalam Persfektif Negara
Kepulauan Republik Indonesia . Jurnal Ilmiah Platax, 1(2), 92.
https://doi.org/10.35800/jip.1.2.2013.1251 Google Scholar
Laurans, Y., Pascal, N., Binet, T., Brander, L., Clua, E., David, G., Rojat, D., & Seidl, A. (2013).
Economic valuation of ecosystem services from coral reefs in the South Pacific: Taking
stock of recent experience. Journal of Environmental Management, 116, 135–144.
https://doi.org/10.1016/j.jenvman.2012.11.031 Google Scholar
Lipton, D. W., Katherine Wellman, Isobel C. Sheifer, & Rodney F. Weiher. (1995). Economic
Valuation of Natural Resources. Google Scholar
Mahakena, M. A., Siahainenia, S. M., & Sahetapy, D. (2021). Valuasi Ekonomi Ekosistem
Terumbu Karang Pulau Warbal di Kawasan Konservasi Kei Kecil Kabupaten Maluku
Tenggara. TRITON: Jurnal Manajemen Sumberdaya Perairan, 17(2), 104–116.
https://doi.org/10.30598/TRITONvol17issue2page104-116 Google Scholar
Maharmingnastiti, W., Saputra, S. W., & Wijayanto, D. (2015). Valuasi Ekonomi Ekosistem
Terumbu Karang di Perairan Karang Kelop Kabupaten Kendal. Management of Aquatic
Resources Journal (MAQUARES), 4(3), 188–194. Google Scholar
Marre, J.-B., Brander, L., Thebaud, O., Boncoeur, J., Pascoe, S., Coglan, L., & Pascal, N. (2015).
Non-market use and non-use values for preserving ecosystem services over time: A choice
experiment application to coral reef ecosystems in New Caledonia. Ocean & Coastal
Management, 105, 1–14. https://doi.org/10.1016/j.ocecoaman.2014.12.010 Google Scholar
Nababan, T. S., & Simanjuntak, J. (2008). Aplikasi Willingness To Pay Sebagai Proksi Terhadap
Variabel Harga: Suatu Model Empirik Dalam Estimasi Permintaan Energi Listrik Rumah
Tangga. Jurnal Organisasi & Manajemen, 4(2), 73–84. Google Scholar
Obeng, E. A., & Aguilar, F. X. (2021). Willingness-to-pay for restoration of water quality services
across geo-political boundaries. Current Research in Environmental Sustainability, 3,
100037. https://doi.org/10.1016/j.crsust.2021.100037 Google Scholar
Putri, I. A. P., Fauzi, A., & Anna, Z. (2009). Valuasi Ekonomi Terumbu Karang Kawasan
Konservasi Laut Kepulauan Seribu [ Master These, Institut Pertanian Bogor].
http://repository.ipb.ac.id/handle/123456789/55315 Google Scholar
Rani, S., Ahmed, M. K., Xiongzhi, X., Yuhuan, J., Keliang, C., & Islam, M. M. (2020). Economic
valuation and conservation, restoration & management strategies of Saint Martin’s
coral island, Bangladesh. Ocean & Coastal Management, 183, 105024.
https://doi.org/10.1016/j.ocecoaman.2019.105024 Google Scholar
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1226 Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
Sabet, F. B. A. S., & Pungki Ari, W. (2022). Valuasi Ekonomi Sumberdaya Pesisir dan Laut
dalam Kebijakan Penataan Ruang Wilayah Pesisir dan Laut. OECONOMICUS Journal of
Economics, 6(2), 74–85. https://doi.org/10.15642/oje.2022.6.2.74-85 Google Scholar
Sadikin, P. N., Mulatsih, S., Noorachmat, B. P., & Susilo Arifin, H. (2017). Analisis Willingness-
To-Pay Pada Ekowisata Taman Nasional Gunung Rinjani. Jurnal Analisis Kebijakan
Kehutanan, 14(1), 31–46. https://doi.org/10.20886/jakk.2017.14.1.31-46 Google Scholar
Saksono, H. (2013). Ekonomi biru: Solusi pembangunan daerah berciri kepulauan studi kasus
Kabupaten Kepulauan Anambas. Jurnal Bina Praja: Journal of Home Affairs Governance,
5(1), 1–12. Google Scholar
Sandorf, E. D., Aanesen, M., & Navrud, S. (2016). Valuing unfamiliar and complex
environmental goods: A comparison of valuation workshops and internet panel surveys with
videos. Ecological Economics, 129, 50–61. https://doi.org/10.1016/j.ecolecon.2016.06.008
Google Scholar
Sari, D. A. A., & Muslimah, S. (2014). Kebijakan Pengeloaan Pulau-pulau Kecil Terluar
Indonesia dalam Menghadapi Perubahan Iklim Global. Yustisia, 3(3), 57–72. Google
Scholar
Shah, S. A., Hoag, D. L. K., & Loomis, J. (2017). Is willingness to pay for freshwater quality
improvement in Pakistan affected by payment vehicle? Donations, mandatory government
payments, or donations to NGO’s. Environmental Economics and Policy Studies, 19(4),
807–818. https://doi.org/10.1007/s10018-016-0178-x Google Scholar
Siregar, T. N., & Istiqomah, A. (2022). Potensi implementasi skema payment for environmental
services Ruang Terbuka Hijau Taman Lembah Mawar. E-Jurnal Ekonomi Sumberdaya Dan
Lingkungan, 11(2), 61–72. Google Scholar
Solihin, L. S., Kusumastanto, T., Fauzi, A., & Yulianda, F. (2019). Kontribusi Payment For
Environment Services (PES) Terhadap Keberlanjutan Wisata Selam Di Kawasan
Konservasi Laut Gili Matra. Jurnal Kebijakan Sosial Ekonomi Kelautan Dan Perikanan,
9(2), 117. https://doi.org/10.15578/jksekp.v9i2.7621 Google Scholar
Spash, C. L., Urama, K., Burton, R., Kenyon, W., Shannon, P., & Hill, G. (2009). Motives behind
willingness to pay for improving biodiversity in a water ecosystem: Economics, ethics and
social psychology. Ecological Economics, 68(4), 955–964.
https://doi.org/10.1016/j.ecolecon.2006.09.013 Google Scholar
Suparmoko, S., Sudirman, D., Setyarko, Y., & Wibowo, H. S. (2014). Valuasi Ekonomi Sumber
Daya Alam dan Lingkungan. BPFE Universitas Gadjah Mada. Google Scholar
Sutopo, M. F., Sanim, B., Saukat, Y., & Mawardi, M. I. (2016). Analisis Kesediaan Membayar
Jasa Lingkungan Dalam Pengelolaan Sumberdaya Air Minum Terpadu Di Indonesia (Studi
Kasus DAS Cisadane Hulu). Jurnal Teknologi Lingkungan, 12(1), 17.
https://doi.org/10.29122/jtl.v12i1.1258 Google Scholar
Talakua, E., Papilaya, R. L., & Wailissa, I. S. (2019). Estimasi Dana Masyakarat Melalui Valuasi
Ekonomi Kerusakan Terumbu Karang di Desa Poka Kota Ambon. Jurnal Ilmu Lingkungan,
17(1), 42–51. https://doi.org/10.14710/jil.17.1.42-50 Google Scholar
Tamsah, H., & Nessa, N. (2019). The application of economic-valuation in the calculation of
damage to coral reefs ecosystems in Indonesia. IOP Conference Series: Earth and
Environmental Science, 235, 012096. https://doi.org/10.1088/1755-1315/235/1/012096
Google Scholar
Ureta, J. C. P., Lasco, R. D., Sajise, A. J. U., & Calderon, M. M. (2014). Oroquieta City
Households’ Willingness to Pay for Coastal Biodiversity Conservation. Journal of
Sustainable Development, 7(5). https://doi.org/10.5539/jsd.v7n5p82 Google Scholar
Vicente, P., Marques, C., & Reis, E. (2021). Willingness to Pay for Environmental Quality: The
Effects of Pro-Environmental Behavior, Perceived Behavior Control, Environmental
Activism, and Educational Level. SAGE Open, 11(4).
https://doi.org/10.1177/21582440211025256 Google Scholar
Xiong, K., Kong, F., Zhang, N., Lei, N., & Sun, C. (2018). Analysis of the factors influencing
willingness to pay and payout level for ecological environment improvement of the
Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili
Gede Marine Area, West Nusa Tenggara
1227
Return: Study of Management, Economic And Business, Vol 2 (12), December 2023
Ganjiang River Basin. Sustainability (Switzerland), 10(7).
https://doi.org/10.3390/su10072149 Google Scholar
Zurba, N. (2019). Pengenalan Terumbu Karang Sebagai Pondasi Utama Laut Kita. Unimal Press.
Google Scholar
