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Local willingness to fund climate-resilient water utilities in a tourism-dependent region of Indonesia

Author

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  • Sofiyah, Evi Siti
  • Suhardono, Sapta
  • Suryawan, I Wayan Koko
  • Chun-Hung, Lee

Abstract

This study explores public preferences and willingness to fund climate-resilient water utility services in a tourism-intensive region of Bali, Indonesia. Given the dual pressures of seasonal tourist demand and increasing climate-related disruptions, water utilities in such regions require innovative strategies that balance technical resilience with community support. To address this, we designed a scenario-based choice experiment involving 640 respondents to assess preferences for adaptive water service improvements structured around five key governance and operational attributes: Asset (infrastructure upgrades such as innovative rainwater harvesting), Flexibility (responsive and decentralized management), Social Organization (cross-functional leak detection and repair teams), Learning (training and innovation capacity), and Agency (community participation in planning and decision-making). Three hypothetical adaptation scenarios were developed by combining different levels of these attributes: Scenario 1 prioritized technological improvements and social monitoring; Scenario 2 emphasized decentralization, institutional learning, and stakeholder feedback; Scenario 3 integrated advanced infrastructure with active local agency and inclusive governance. Results from random parameter logit and latent class model estimations indicate that the highest marginal willingness to pay (MWTP) is for Scenario 3 (an 18.44 % increase in household water bills), followed by Scenario 2 (11.13 %) and Scenario 1 (7.31 %). Segmentation results further reveal that individuals with higher income, education, and climate awareness were more likely to support integrated strategies that emphasized both technology and participatory governance. These findings provide practical guidance for local governments and utility managers in formulating equitable, climate-resilient water policies.

Suggested Citation

  • Sofiyah, Evi Siti & Suhardono, Sapta & Suryawan, I Wayan Koko & Chun-Hung, Lee, 2025. "Local willingness to fund climate-resilient water utilities in a tourism-dependent region of Indonesia," Utilities Policy, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:juipol:v:96:y:2025:i:c:s095717872500133x
    DOI: 10.1016/j.jup.2025.102018
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    1. Suryawan, I Wayan Koko & Rahman, Ari & Suhardono, Sapta & Nguyen, Van Viet & Lee, Chun-Hung, 2025. "Green-blue workforce readiness for mangrove conservation: Community competency clusters and participatory drivers in Indonesia," Forest Policy and Economics, Elsevier, vol. 178(C).

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