| dc.description.abstract | The activities of economy, such as production and consumption may reduce the level of environmental quality. An industrial activity is one of the economic activities that has effects not only in economic and social aspect but also influences the physical change of environmental quality. A variety of measures and procedures can be used to improve or maintain environmental quality. Therefore, the study of the estimation of both external cost and people’s willingness to accept (WTA) compensation, the effects toward environment caused by industrial activities is needed for doing further arrangements about environmental charges or taxes to achieve sustainable development. The objective of this study is to identify the society who living in the industry area, to estimate both the external cost and WTA value caused by industrial activities, and to identify the factors that influence WTA value. This paper presents a survey which explores the descriptive analysis, valuation of environmental economics, and application of contingent valuation method (CVM). The observations and interviews were conducted to society who live in sugar industry area, Cepiring-Kendal taken by purposive sampling method. The result shows that the external cost of each household per month is 64.721 IDR, the external cost of society of RW 04 Cepiring is 229.845.336 IDR, while in agricultural sector is 314.720.000 IDR per year. Compared to the external cost of each household, the average of mean values of household’s WTA per month is higher, which is 440.132 IDR. There are five factors that influence WTA value significantly such as education level, houses from industry area, quality of noise, economic losses caused by water pollution, and zero-effort to replace the environmental quality. | en |
