Valuing Community Willingness to Pay for Agrosilvofishery on Tropical Peatlands Using a Double-Bounded Dichotomous Choice Approach: A Case Study of Perigi Village, Indonesia

Indonesia’s tropical peatlands hold vast carbon stores but face degradation from anthropogenic pressures such as agriculture, logging, and mining. The main objective of this study is to identify the determinants of community willingness to pay (WTP) for agrosilvofishery and to estimate its economic value to support sustainable peatland management. This study surveyed 617 residents of Perigi Village, Indonesia. A structured questionnaire was used to assess smallholder farmers’ WTP for agrosilvofishery models. Using a double-bounded dichotomous choice contingent valuation method and econometric estimation, the findings indicate that higher bid prices reduce WTP; respondents preferred low and medium bids. Overall, most respondents expressed a willingness to participate financially in agrosilvofishery practices. Significant factors influencing WTP include birthplace, income, regular income, expenditure, previous agrosilvofishery experience, experience with droughts or fires, expected profit, and environmental risk perception. Flood variables had no effect, while drought and fire significantly increased WTP. The findings highlight the importance of effective communication strategies and policy design to address perceived barriers and promote the benefits of agrosilvofishery.