Agriculture takes an important role for economy by more than 14% of economic contribution. Nevertheless, it has indirective effects, where it has commonly a negative impact, but somehow in the long term, offers a better environmental service. This study, therefore, aimed to evaluate both impact by estimating the Indonesia food barn to estimate how far the impact to environment through the Environmental Kuznets Curve (EKC). In order to improve the environmental quality in the long term, the sustainable practices through ecolabelling product have to be conducted. Thus, the evaluation of consumers’ WTP for ecolabelling product has been observed through 300 respondents depicting their preferences. Following by AHP analysis to construct the priority of strategies to develop the sustainable agriculture. Based on the results, EKC model showed it initially leads to environmental damage, but at a certain level, people begin to increase environmental awareness by a decrease of methane (CH4) about 0.12%. It is proved by their WTP where 82.6% respondents were willing to pay for ecolabelling product. Finally, to support sustainable agriculture, reforming the market access is a top priority (0.312 points) which aimed to progressively encourage the farmers’ supply. Otherwise, the pricing strategy becomes the consumers’ main perspective to buy (0.264 points).
The objective of this study is to analyze the value of Willingness to Pay (WTP) of eco-friendly agricultural products and the factors that influence it. The analytical method used was the contingent valuation method (CVM) and logistic regression analysis. The results show that the total number of WTP in West Java is IDR 620,000, meaning that there will be an additional value of eco-friendly agricultural products by 620,000 for each sale. Then, the total number of WTP in Central Java is IDR 580,000 and then the total number of WTP in East Java is IDR 532,000. Based on the results of the logistic regression estimation, it shows that the variables that have a significant effect on the willingness to pay for eco-friendly agricultural products in West Java include gender, education, marital status, number of family dependents, income, and concern for the environment. Based on the results of the logistic regression estimation, it shows that the variables that have a significant effect on the willingness to pay for eco-friendly agricultural products in Central Java include age, education, number of family dependents, income, and price. Based on the results of the logistic regression estimation, it shows that the variables that have a significant effect on the willingness to pay for eco-friendly agricultural products in East Java include gender, education, marital status, number of family dependents, price, and concern for the environment.
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