Are people willing to pay for reusable bags? The case study in Yogyakarta and Surakarta

Abstract

The purpose of this study is to determine the value of Willingness to pay (WTP) reusable bags in an effort to reduce the use of plastic bags and the variables that affect the value of Willingness to pay. This study uses the Contingent Valuation Method (CVM) analysis method and multiple linear regression analysis to determine the factors that affect the magnitude of WTP reusable bag value. The results showed that the characteristics of respondents in this study were dominated by respondents with female gender, in the age range of 20-24 years, with the last high school education (12 years), and at the income level of Rp1,000,000 - Rp5,000,000. As many as 77% of 400 respondents know how to limit the use of plastic bags to preserve the environment. The average WTP value of respondents was Rp4,485, with an economic value of Rp2,553,197,000 per month. Variables that have a significant effect on WTP are age, domicile, recent education, knowledge, and income. At the same time, the sex variable did not have a significant effect on WTP. The public needs to be educated about the purpose of the implementation of paid plastic bags and the use of reusable bags in consumption activities. In addition, there is a need for education about the urgency of the zero waste program in Indonesia.