Analysis of Willingness to Pay (WTP) Farmers Procurement of Installation on Biogas In Traditional Dairy Farm Waste Management (Case: Sub-District Cisarua Bogor).

Abstract

One of the common problems of the traditional dairy farm is the wastes. Livestock waste, if not managed properly, can cause a decline in environmental quality. Biogas technology is one solution to waste treatment, which also generate economic benefits. Based on that fact, in the year 2007-2008, the government ran a biogas installation providing program, free of charge, to the traditional dairy farmers in sub-district Cisarua, Bogor. However, from a total of 98 farmers in the area, only 39 of them got the installation and the programs apparently had been stopped. Therefore, the procurement of biogas installations for the rest of the farmers, relies on the economic participation of the farmers. Farmers' willingness to pay provision of biogas installations will be exchanged for better environmental quality and economic benefits from the biogas. Based on the results of the study just as much as 46.4% of farmers who are willing to pay for the procurement of biogas installations.