Household Willingness to Pay for Landslide Hazard Mitigation in Purworejo, Indonesia

Abstract

Landslide hazard could have severe impacts on public properties including damaged infrastructure, changing land structure, relocation of buildings and roadways, reduction on water quality in streams and irrigation facilities, etc., Household mitigation for landslide hazard is necessary to reduce such hazard intensity and minimize the impacts. This paper has analyzed household's willingness to pay (WTP) for landslide hazard mitigation in a high potential risk for landslide hazard regency in Purworejo, Central Java Indonesia. Contingent Valuation Method (CVM) was employed to capture the household's WTP. Determinants of the household WTP were estimated using the Logistic regression model. 270 households were chosen using a purposive sampling technique as the respondents of this study. Results showed that 76.7 percent of respondents were willing to pay for an average of IDR 4,500 (USD 0.32) for landslide mitigation. Household income, distance to landslide location, frequency of landslide, and educational attainment have significant effects on the WTP. The paper recommends that the local government should pay more attention to the landslide hazard mitigation programs.