Model of Tree Shade Value by Contingent Valuation Technique on the Cocoa Agroforestry of Central Sulawesi Province

Agroforestry is a technology of avoiding deforestation and forest degradation and to increase cocoa production. Consider these, UNREDD recommends it as an activity of REDD+ implementation. This study aims to construct a model of the shade economic value in cocoa agroforestry. Contingent valuation survey was pursued on 211 respondents in five villages. We used the Two Stage Random Sampling Method to have both villages’sample and respondents’sample. Multivariate analysis involved one dependent variable (value of tree shade; Y) and eight independent variables. PCA was used to solve multi-colinearity. The scree plot obtained shows two factors with eigenvalue > 1. OLS Linear Regression developed a model Y= 35.05 + 3.11 Fee + 7.0 Fse + ɛ with R2 = 91.9% where Fee = f(X1; X2;X8) and Fse = f(X3; X4; X5; X6; X7). Mean of the shade economic value is IDR 35,000.00 per month per one percent of additional shade in one hectare. The model explains that 35.05 is value, predicting Y if Fee (ecology-economic) = 0 and Fse (socio-economic) = 0. Parameter 3.11 represents the difference in the predicted value of Y for each one-unit difference in Fee, if Fse remains constant. Parameter 7.0 is interpreted as the difference in the predicted value in Y for each one-unit difference in Fse, if Fee remains constant. The mean of tree shade allowed by respondents is 31.67%, while the minimum and maximum shade allowed are 19% and 42%. Mean of actual tree shade practiced by the farmers is 18%.