Self-Financing Strategy for Water Conservation Through Payment of Environmental Services for Domestic Water Users in the Upper Areas of Renggung Watershed

Abstract

The objectives of this research are: (1) identify the community's willingness to pay (WTP) for domestic water environmental services and their WTP value; (2) analyze the factors that influence the domestic water WTP value;(3) analyze the potential for self-financing for water conservation; and (4) formulate mechanisms and strategies for the management of conservation self-help funds. This research was conducted in the upstream area of the Renggung Watershed with 30 sample households. Data were analyzed using a mathematical approach to calculate the WTP value and multiple regression analysis was used to determine the factors influencing WTP. The research results are as follows: (1) the majority (83.33%) of the community is willing to pay for domestic water environmental services with an average WTP value for each household of IDR 6,633 per month; (2) there are three factors that have a significant influence (p<0.10) on the WTP value, namely: age of the head of the family, household expenditure, and education of the head of the family;(3) the potential for self-help conservation funds sourced from domestic water WTP is IDR 744,001,115 per year; and (4) mechanisms and strategies for managing conservation selfhelp funds are carried out by empowering BUMDES as managers and local nongovernmental organizations as supervisors.