Valuation of the Multifunctional Economic Value of Paddy Fields: Corn Production, Oxygen Supply Services, and Cultural Preservation in Dukun District, Gresik Regency
Valuasi Nilai Ekonomi Multifungsi Lahan Sawah: Produksi Jagung, Jasa Penyedia Oksigen, dan Pelestarian Budaya di Kecamatan Dukun Kabupaten Gresik
DOI:
https://doi.org/10.30742/jisa26120265047Keywords:
economic valuation, ecosystem services, maize production, oxygen production, paddy fieldsAbstract
Paddy fields are multifunctional ecosystems that provide high-value environmental services in addition to food production. However, these services have not yet been factored into the economic value of agriculture. This leads to market failure and accelerates land-use change. This study conducted an integrated economic valuation of 110 hectares of paddy fields planted with maize in Dukun Sub-district, Gresik Regency, East Java. The study aimed to calculate the economic value of maize production, the ecosystem service of oxygen provision, and the value of cultural preservation. It integrated the market price method (MPM), the replacement cost method (RCM) and the Contingent Valuation Method (CVM) across 160 respondents. The results show that maize production generates an economic value of Rp7.1 billion year-1 from a total maize yield of 1,980,000 kg. The ecosystem service of oxygen provision results in oxygen production of 10,397,596 m³ O₂ year-1, with an estimated economic value of Rp207.95 billion year-1. The value of cultural preservation, measured using the CVM method, yielded an average WTP of Rp350,000 person-1 year-1 (Rp29,167 person-1 month-1) and a WTA of Rp1,500,000 person-1 month-1 (Rp18,000,000 person-1 year-1). These results underscore the vital role of ecosystem services, which have long been overlooked. These findings provide an empirical basis for the development of a Payment for Ecosystem Services (PES) scheme to compensate farmers for the ecosystem services they provide and to integrate this into the national environmental economic valuation framework, in support of Indonesia’s reporting on SDGs 2, SDGs 13 and SDGs 15.
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