Economic valuation of critical land

Abstract

Abstract The purposes of this research are to analyze and to identify the factors influencing the farmers’ Willingness to Pay (WTP) in reducing the impact of the critical land. The research method used to calculate the farmers’ WTP on the land restoration is the Willingness to Pay (WTP) Method, and The Ordinal Logistic Regression Method is used to analyze WTP’s influencing factors. The result showed that the farmers’ average of maximum WTP was IDR 21,196. This means that the farmers’ average of maximum WTP is lower than the average cost incurred by the farmers for the land restoration activity that was IDR 58,000. This indicated the low of farmers’ awareness in the efforts of doing critical land restoration. The independent variable with significant influence is the OWN (status of the land ownership) variable. The other variables that are positive and significant are income, age, education, long stay, and family numbers. The significant variables with negative impact are marital status, occupation, and land restoration activity. In general, farmers thought that the activities of repairing the degraded land were the role of the government. So that the efforts of farmers in recovering land are almost non-existent.