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Economic Valuation of Household Waste Transportation in Yogyakarta City, Indonesia: A Contingent Valuation Approach Anggi Rahajeng; Yudistira Hendra Permana; Naufal Mohamad Firdausyan; Sulistyo Handoko
Jurnal Ilmu Lingkungan Vol 24, No 1 (2026): Januari 2026
Publisher : School of Postgraduate Studies, Diponegoro Univer

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14710/jil.24.1.%p

Abstract

This study examines the economic aspects of solid waste management in Yogyakarta City by comparing households' Ability to Pay (ATP) and Willingness to Pay (WTP). Using survey data and Tobit regression analysis, this research estimates ATP and WTP values and identifies their underlying determinants. The findings reveal a crucial phenomenon: WTP consistently exceeds ATP. This indicates that while citizens highly value waste services and are willing to pay more, they are restricted by their actual financial capacity. Furthermore, demanding physical obligations, such as mandatory sorting for waste banks, significantly reduce WTP because households perceive this manual effort as an added burden. Given that Yogyakarta City currently lacks a standardized tariff system, this study warns that implementing a uniform flat-rate tariff in the future would be highly inequitable. A flat-rate system would severely burden vulnerable groups while disproportionately benefiting wealthy households. Therefore, the government is advised to implement a progressive, tiered tariff system. Through cross-subsidization, wealthier households would pay a premium to subsidize low-income populations. This equitable financing scheme is absolutely necessary to ensure the commercial viability and sustainability of Public-Private Partnership (PPP) projects under the 2022–2031 waste management masterplan.
DO FLOODS LEAVE LASTING SCARS? LONG-TERM EFFECT OF FLOOD EVENTS ON INDONESIA'S REGIONAL ECONOMY Ramadhani, Amesta Kartika; Astuti, Sephia Dwi; Ultanti, Ashtian; Rahajeng, Anggi; Prativi, Fatima Putri
Journal of Applied Economics in Developing Countries Vol 11, No 2 (2026): In press September
Publisher : MESP–FEB UNS

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20961/jaedc.v11i2.116818

Abstract

As climate-related disasters increase in intensity and frequency, Indonesia is becoming more vulnerable to their impacts. Among these disasters, flooding is one of the most threatening hazards, causing both short and long-term economic consequences. While existing literature reports the impact of a single event, the impact of disaster on economic performance or immediate impact of disaster, the dynamic impacts on both GRDP per capita and inequality remain underexplored. To address this research gap, this study analyzes the economic impacts of floods using a Panel Autoregressive Distributed Lag (P-ARDL) model. It examines how floods affect GRDP per capita and inequality levels in both short and long run. The analysis also incorporates other explanatory variables, including Foreign Direct Investment (FDI), Domestic Investment (DDI), the Human Development Index (HDI), and population size.  The results indicate that, in the long run, floods have a negative effect on GRDP per capita; a 1% increase in flood events reduces GRDP per capita by 0.48%. In the short term, every 1% increase in flood frequency is associated with a 0.013% reduction in per capita GRDP. This study also reveals that floods have a significant negative impact on income inequality in both the short and long term. However, this paradoxical finding needs careful interpretation. It may not indicate an increase in social welfare but rather reflects the impact of flooding on wealthier groups, potentially narrowing the gap. Further research is needed to confirm this. This research underscores the importance of improving flood mitigation to maximize flood prevention and strengthen the resilience of economic productivity. Furthermore, the research findings need to be further explored, including the mechanisms by which floods reduce per capita GRDP and explore how floods can reduce inequality.