Determinants of willingness to pay for non-technical irrigation in East Java, Indonesia

Abstract

Declining water supply is the main cause of rising water fee for agricultural use. Moreover, in non-technical irrigation, poor irrigation infrastructure exacerbates water scarcity. Thus, the purpose of this study is to identify farmer willingness to pay for non-technical irrigation and its determinants. Structured questionnaire was used to collect data from 100 farmers. Contingent valuation method was employed to elicit farmer WTP and multiple linear regression was used to find its determinants. The result shows that farmer average WTP is Rp 3,055,168 /ha/year. It accounts for 20 percent of total farmer revenue and almost 20 times fee for technical irrigation. Economic and technical variables are the significant determinants of WTP while social variables seem insignificant to WTP. This result indicates high economic value of water, and to improve irrigation management we recommend establishing irrigation infrastructure gradually by mobilizing farmer resources (capital and management) and strengthening WUA.