ABILITY TO PAY AND WILLINGNESS TO PAY ANALYSIS OF CLEAN WATER NEEDS FROM DUSUN SEPURAN, JEMBER REGENCY

Agus Luthfi (Jember University)
Moh. Saleh (Jember University)
Maryunani Maryunani (Brawijaya University)
Herman Cahyo Diartho (Jember University)

Journal of Indonesian Applied Economics
Vol. 7 No. 2 (2017)

This research aimed to discover how Dusun Sepuran society could fulfill clean water needs using Ability to Pay (ATP) and Willingness to Pay (WTP) approach. This research used quantitative analysis method affirmed by qualitative method. Based on data processing result, it was known that Dusun Sepuran society ATP categorized within captive rider category. It means that, ATP value for water needs proportion is lower than WTP. This is due to high Electricity Base Tariff Rate which cause water fulfillment cost, as most of Dusun Sepuran people must use water pump. Therefore proper policy implementation is necessary in handling water crisis threat at Dusun Sepuran in the future