Vulnerability and Willingness to Pay for Coping with Flood in Klaten Regency, Central Java, Indonesia

Suryanto, USM and Sutrisno, USM and Evi Gravitiani, USM and Fitri Susilowati, UPY (2017) Vulnerability and Willingness to Pay for Coping with Flood in Klaten Regency, Central Java, Indonesia. Journal of Business and Economics Review, J. Bus. Econ. Review 2 (2) 38 – 44 (2017).

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Abstract

The focus of this research is the analysis of vulnerability and factors that influence willingness to pay (WTP) to cope with flood. Other result of this research is economic valuation of flood impact on paddy field in particular. Methodology/Technique – This research used the descriptive and quantitative method. Its data were collected through direct interviews with 380 respondents. Its samples were scattered in 11 sub-districts and 94 villages. The representatives of each village were 4 respondents, by adding two respondents from Wedi Sub-district and 2 respondents from Cawas Sub-district. Proportional sampling technique was employed to determine the research samples with criteria: very close (<50 m), close (50-100 m), and far (> 100 m) from the river. Its data were analyzed by using contingent valuation methods (CVM). Findings – The results of the research are as follows. Many activities have been implemented to mitigate flood in Klaten Regency, but many problems have been encountered due to the limitations of Government Budget (APBD). The variables of income of family/household, water level, distance, and loss have a significant effect on the WTP. In majority, the respondents (72.27%) have the WTP for flood mitigation activities with the average WTP of 15,391 IDR. Novelty – Economic valuation of flood mitigation programs and activities is required as to further enhance the role of the community, taking into account factors affecting the WTP. The local government should take advantage of the public's WTP to support flood mitigation activities among neighbourhood, village, sub-district and regency. Type of Paper: Empirical

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