Willingness to pay of tobacco farmers for adapting climate change and social capital influence

Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Indonesia

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

Abstract

Meteorologists expect that climate change will have an increasing impact on ecosystems and agricultural productivity, nevertheless, many farmers are unsure how climate change will affect crop yields and overall farming operations soon. This study investigates farmers’ willingness to pay in the process of climate change adaptation in Temanggung, Indonesia. We looked at how various aspects of social capital influence tobacco farmers’ willingness to pay financially to adapt to climate change using a logistic regression model. There were 270 farmers surveyed in this study by purposive sampling. The findings of binary logistic regression demonstrate that tobacco farmers are at least somewhat inclined to contribute to climate change adaptation, and that this decision is primarily and strongly driven by social capital factors. it shows that 82.2% of respondents are willing to pay contributions of IDR 12,000 (USD 0.78). The results showed the importance of the social capital characteristics such as community participation and trust each have a significant effect on Willingness to pay (WTP) for adapting the climate change. From a policy standpoint, it is critical to provide all farmers with knowledge that will assist them in adapting to climate change using appropriate farming technologies and practices.