Is social capital important in coping with climate change? A case of agriculture sector in Gunungkidul, Indonesia

Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Indonesia

^* Corresponding author: endahsaptuty@umy.ac.id

Abstract

Agricultural producing fields in Yogyakarta, Indonesia, are suffering as a result of climate change. Drought is becoming more often as a result of climate change, making the agricultural sector more vulnerable. Adaptation methods are needed to mitigate a hazard posed by climate change. Farmers' willingness to participate in the climate change adaptation process in Yogyakarta, Indonesia, is investigated in this study, particularly in light of the increasing risk of drought. Contingent valuation method (CVM) was used to determine the farmer's WTP. We investigated the effects of social capital on farmers' willingness to participate using a logistic regression model. This study involved 268 respondents. According to the findings, 68% of farmers are willing to financially contribute to the adaptation process. This involvement was linked to a high degree of social capital which proxied by community engagement. Apart from social capital, this study also uses socio-demographic characteristics, knowledge of climate change, assets, and farming experience. This study adds to the body of knowledge by addressing the possible importance of social capital in the agricultural sector's climate change adaptation process.