Economic valuation of ecosystem services in urban agriculture through willingness to pay and its implications in indonesia (a literature review in several countries)
DOI:
https://doi.org/10.61511/wass.v1i2.2024.1272Keywords:
urban agriculture, willingness to pay (WTP), ecosystem services, economic valuationAbstract
Background: Urban agriculture plays a crucial role in mitigating urban environmental degradation by providing ecosystem services. Understanding consumers' willingness to pay (WTP) in urban agriculture planning offers insights into individual preferences and values, which can guide policies that promote sustainable urban agriculture. Existing research across various locations, including Spain, Norway, the United States, Nigeria, and Sri Lanka, highlights the diversity of societal values and preferences regarding urban agriculture. Methods: This study employs economic valuation of ecosystem services through the WTP method, focusing on evaluating the value of ecosystem services, socio-economic factors, and household WTP in the context of sustainable urban agriculture planning. The research synthesizes findings from previous studies and integrates theoretical components relevant to urban agricultural ecosystems. Findings: The analysis reveals significant variability in WTP among different demographics, indicating that socio-economic factors significantly influence consumers' perceptions of urban agriculture's value. The results suggest a positive correlation between ecosystem services provided by urban agriculture and overall community well-being, emphasizing the necessity for tailored policies to enhance sustainability in this sector. Conclusion: The study concludes that urban agriculture not only serves as a provider of ecosystem services but also positively impacts community welfare. Understanding societal preferences and values can aid in designing effective urban agricultural solutions. Novelty/Originality of this article: This research introduces an innovative approach by applying the WTP method to evaluate urban agriculture's ecosystem services, contributing unique insights into the relationship between consumer preferences and urban sustainability efforts, which have not been thoroughly explored in previous studies
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