Advances in Economics and Business Vol. 3(2), pp. 57 - 61
DOI: 10.13189/aeb.2015.030204
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Adaptation Strategy on Urban Air Quality, Case Study: Semarang Urban Area, Indonesia


Evi Gravitiani *, Rosalina Enny Widi Kristanti
Faculty of Economics and Business, Sebelas Maret University, Indonesia

ABSTRACT

The economic growth in the urban areas is characterized by the growth of the industrial sector and traffic density. The increase in the amount of motorized vehicles caused an increase in emission in the air. Emission is mobile sources of pollution, which interfere with the air quality in the urban areas. These effects human health negatively. This research was estimating the willingness to pay (WTP) with the contingent valuation method. This research aims to determine the public awareness to keep their environment clean. It is indicated by people's WTP on policy implication that offered once every year. The strategy offered to diminish mobile sources of pollution are (1) improvement in transportation infrastructure, (2) reforestation, (3) replacement of old motorized vehicles, and (4) the use of alternative roads on traffic peak hours. The strategies to diminish the mobile sources of pollution were ranked by an Analytical Hierarchy Process (AHP) according to people's preference in the implementation. The strategies have implications in four consecutive years. The research result showed that the level of WTP of the society was still low, as only 38% of the people are willing to pay a maximum of 40,000 rupiah every year to reduce mobile pollution sources. The determinant factors of the WTP are estimated by the ordered probit method. The estimated results showed that the income of the respondents compared to health costs, caused by damaged lungs, eyes, and nose, has an influence on the WTP. While the age, education, and distance to the polluted area of the respondents are not significantly influencing the WTP.

KEYWORDS
Urban Air Quality, Willingness to Pay, Analytical Hierarchy Process

Cite this paper
Evi Gravitiani , Rosalina Enny Widi Kristanti . "Adaptation Strategy on Urban Air Quality, Case Study: Semarang Urban Area, Indonesia." Advances in Economics and Business 3.2 (2015) 57 - 61. doi: 10.13189/aeb.2015.030204.