Abstract
This research empirically examines the preferences for job-related attributes among rural villagers living close to artisanal and small-scale gold mining (ASGM) in Indonesia. Based on hypothetical scenarios in which a private company collaborates with the local government to establish a food processing industry in these villages, a questionnaire survey designed with best–worst scaling (BWS) was administered to households to determine their preferences. Additionally, the heterogeneity among the villagers was examined by applying a latent class logit (LCL) model. The main household survey was conducted in 2019 in Bone Bolango Regency, Gorontalo Province. The estimation results revealed that villagers are separated into four classes, and each class has different and unique preferences. Creating more job opportunities for society is a highly evaluated attribute; however, the preference for skill acquisition differs among groups. The results indicate that accounting for heterogeneous preferences regarding job opportunities is helpful to delink dependency on ASGM and health hazards and improve the livelihoods of rural villagers. The study yields key information to substantially reduce environmental and health hazards in the poverty-plagued ASGM community by facilitating job opportunities in Indonesia.
Highlights
The release of mercury and its components into the atmosphere has had serious impacts on human health and the local environment
This research empirically examines the preferences for job-related attributes among rural villagers living close to ASGM in Gorontalo Province of Indonesia
Even though job opportunities are highly evaluated by classes other than class 3, the unique features of class 3 need to be taken into account in managing ASGM issues in Gorontalo, Indonesia
Summary
The release of mercury and its components into the atmosphere has had serious impacts on human health and the local environment. One of the major activities that emits mercury (Hg) is artisanal and small-scale gold mining (ASGM), an activity in which individuals or small groups extract gold using simple tools and methods. Mercury is used to extract gold from gold ores to make an amalgam, which is burned to distill mercury and isolate gold. Mercury is released to the air, water and soil during the vaporization and tailing process and is diffused into the environment. ASGM is the predominant source of anthropogenic mercury emissions, accounting for 37.7% of the total mercury emissions in 2015 [1]. ASGM plays a major role in gold extraction; it is estimated to constitute 17–20% of global gold production [2].
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