Analysis of Willingness to Pay And Willingness to Accept for The Existence of Broiler Chicken Farm

Abstract

The development of broiler chicken farm business is not only able to meet the community need for protein, but also causes disturbance to the surrounding environment, especially when it is closely located to residential areas. Business waste can be in the form of physical waste such as wastewater and the presence of flies, as well as social waste in the form of unpleasant odors. This study was aimed to determine the willingness to pay (WTP) of chicken owners for the impact of the waste produced, willingness of the community around the farm to accept compensation (WTA) for the impacts received, the percentage of environmental costs to the total cost structure and the factors that affect the value of willingness to accept compensation. The data analysis used is the Contingent Valuation Method with a bidding game question system and multiple linear regression analysis. The results showed that mean WTP value from farm owners for physical waste was Rp. 3.103.300,-/owner/production period and for social waste was Rp. 280,000,-/head of family/production period. Moreover, the mean WTA value of the community was Rp. 271,866,74,-/head of family/production period. Factors that affected the WTA value included education, income, knowledge, and number of family members.