ABSTRACT

Water resource categorized as public goods have three function that i.e.:
social function, economic function and environmental function. Water resource
exertion is a reflection of economic function, what is in its execution have to pay
attention to the social and environment function. Every entrepreneur or person
conducting water resource exertion is obliged to execute the conservation action
and improve the society prosperity. Existence of water resource exertion make
rise the economic value of water that caused somebody wish to sacrifice goods or
services to obtain the water ( Willingness to Pay) and willing to accept the
compensation for losing goods and services of water resource and environment
(Willingness to Accept).
This research have four goals: analyze Willingness to Pay on the
availibility of water, to analyze Willingness to Accept compensation of water
fund, to analyze paired comparison of Willingness to Pay and Willingness to
Accept, and to identify the conservation effort done by PDAM in Magelang
Regency. Data used to first three goals is primary data obtained by contingent
valuation method with dischotomous choices " Yes" or " No" to questions to
Willingness to Pay and to Accept as the dependent variables, while the
independent variables are the amount money that respondents willing to pay
(WTP) and to accept (WTA), attitude, gender, education, age, family size, wide of
farmland, water sufficiency, farmland status and income. The analysis is
conducted model logit with maximum likelihood estimation method. A rank
spearman correlation methods in used to analyze paired comparison of
Willingness to Pay and Willingness to Accept. Then a descriptive method is used
to identify the conservation effort of PDAM.
The analysis result shown that, first, Willingness to Pay on the availibility
of water as the result environmental change is significantly affected by the amount
money willing to be paid, attitude, education, age, family size, farmland status and
income. Second, Willingness to Accept is significantly affected by attitude,
gender, education, family size, sufficiency and income. Third, paired comparison
Willingness to Pay and Willingness to Accept have the negative correlation,
where about level of Willingness to Accept is higher than Willingness to Pay,
proved that by using the paired comparisons methods could degrade the gap of
WTA-WTP. Fourth, PDAM of Temanggung Regency not yet execute the water
resource conservation efforts, while the conservation efforts done by Magelang
Municipality is still far away below the rule.

Keywords: Willingness to Pay, Willingness to Accept, water resource, logit,

conservation, paired comparison.

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