Farm Household Preferences and Evaluation of Land Use Change Policies for Agro-Forestry Plantations in Central Kalimantan, Indonesia : a Choice Experiment

Abstract

A household survey for the analysis of choice experiment were made to 360 farmers in three selected villages in Central Kalimantan Province. The objective is to analyze the current land use and to observe the perception of farmers on converting part of their land use for bioenergy plantation. The Choice Experiment is used to find a combination of appropriate payment systems to replace the use of the existing land for their farming. From the analysis of Choice Experiment can be explained comparison of the two approaches, that is, models without any interaction and models with interaction. On models without significant interaction effect on farmers’ preferences is Contract Provider (prov), contract length (c-length), water table, land set-aside, compensation, Age, Age2, and income on the real level of 10%. To obtain more accurate results the researchers include variables of interaction between the characteristics of the respondents with a primary variable in order to obtain the best model from the model. From the results of choice experiments good, both without interaction and with interaction can explain what factors that will influence farmers' decisions in choosing their compensation, as a result of implementing bioenergy development.