Vivian Alvianti

Socio-economic determinants of willingness to pay for safe and sustainable water supply in coastal urban areas

Introduction

Socio-economic determinants of willingness to pay for safe and sustainable water supply in coastal urban areas. Investigate socio-economic factors impacting willingness to pay for safe, sustainable water in Bandar Lampung's coastal urban areas. Findings inform stakeholders on improving clean water quality.

Abstract

Background: In many urban developing countries, the main obstacle to expanding and providing piped water supply is the cost to consumers. The coastal area of Bandar Lampung City is a slum seaside area that has a poor piped clean water supply system that requires improvements to various aspects of the system. So it is important to estimate the Willingness to Pay of the community to improve the quality of sustainable clean water which is determined by their socio-economic characteristics. The purpose of this study is to identify the amount of willingness of the residents of the coastal area of Bandar Lampung City to improve the quality of clean water. Methods: The analytical method used is descriptive quantitative with Willingness calculations and binary logistic regression. This study will take a sample of 100 families living in Teluk Betung Selatan District, Teluk Betung Timur, Bumi Waras District, and Panjang District as areas that are in direct contact with the coastal area of Bandar Lampung City. Finding: The results of this study indicate that the average willingness of PDAM customers to pay to improve the quality of clean water is IDR 99,000 with gender and number of family members. Meanwhile, for residents who are prospective PDAM customers, the average willingness to pay is IDR 130,283 and the influencing factors are age and type of work. Conclusion: It can be seen that the willingness of the community to improve the quality of drinking water is quite high. The results of this study are as a reference for relevant stakeholders to improve the quality of clean water due to the high willingness of the community to pay in the coastal area of Bandar Lampung City. Novelty/Originality of this article:The novelty of this study lies in its contextual analysis of community willingness to pay for clean water improvement in coastal urban slum areas, an aspect rarely examined in previous research on water economics in Indonesia.

Review

This study addresses a critical issue of urban water supply in developing countries, specifically focusing on the coastal slum areas of Bandar Lampung City, Indonesia, where access to safe and sustainable piped water is poor. Recognizing the cost barrier for consumers, the research aims to estimate the community's Willingness to Pay (WTP) for improved water quality and identify the socio-economic determinants influencing this willingness. By contextualizing the problem within a specific, underserved urban environment, the study highlights the practical challenges faced by residents and the potential for community contributions to system improvements. Employing a descriptive quantitative approach, the study utilized WTP calculations and binary logistic regression analysis on a sample of 100 families from four districts in direct contact with Bandar Lampung's coastal area. The findings reveal a differentiated WTP among the population. Current PDAM (Perusahaan Daerah Air Minum) customers exhibited an average WTP of IDR 99,000, influenced by gender and family size. Prospective PDAM customers, on the other hand, showed a higher average WTP of IDR 130,283, with age and type of work being the significant determinants. These distinct figures underscore the varied perceptions and capacities for payment within the community. The study concludes that the community's willingness to pay for improved clean water quality is notably high, suggesting a strong public desire for better services. This finding is presented as a valuable reference for relevant stakeholders, encouraging investment and action in water infrastructure improvements, supported by the observed community readiness to contribute financially. The authors claim novelty in their contextual analysis within Indonesian coastal urban slum areas, arguing that this specific demographic and geographic focus on water economics has been rarely examined, thus offering unique insights for policy and planning in similar regions.

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