How does willingness and ability to pay of palm oil smallholders affect their willingness to participate in Indonesian sustainable palm oil certification? Empirical evidence from North Sumatra

A sample survey of palm oil smallholders was used to examine the amount of Willingness and Ability to Pay (WATP) and the factors that determine WATP as well as the impact of WATP on the willingness to participate of smallholders in Indonesian Sustainable Palm Oil (ISPO) certification scheme. Results...

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Autores principales:	Aisyah Dinda Dewi, Irham, Mulyo Jangkung Handoyo
Formato:	article
Lenguaje:	EN
Publicado:	De Gruyter 2021
Materias:	smallholder ispo certification watp willingness to participate Agriculture S Agriculture (General) S1-972
Acceso en línea:	https://doaj.org/article/767922d42a4a4dc29857f68fbb8601f1
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spelling	oai:doaj.org-article:767922d42a4a4dc29857f68fbb8601f12021-12-05T14:10:58ZHow does willingness and ability to pay of palm oil smallholders affect their willingness to participate in Indonesian sustainable palm oil certification? Empirical evidence from North Sumatra2391-953110.1515/opag-2021-0019https://doaj.org/article/767922d42a4a4dc29857f68fbb8601f12021-05-01T00:00:00Zhttps://doi.org/10.1515/opag-2021-0019https://doaj.org/toc/2391-9531A sample survey of palm oil smallholders was used to examine the amount of Willingness and Ability to Pay (WATP) and the factors that determine WATP as well as the impact of WATP on the willingness to participate of smallholders in Indonesian Sustainable Palm Oil (ISPO) certification scheme. Results reveal that the average amount of WATP accounted only half of the certification cost, implying that partial assistance is needed to support the smallholders through government subsidy. The study shows that WATP significantly affects the willingness to participate, and smallholders with higher WATP are more likely willing to participate in ISPO. Both WATP and willingness to participate are significantly determined by social norms (farmers collective impression) and awareness of the consequences of unsustainable farming practices. This result indicates the necessity to improve a positive impression on ISPO and increase awareness of the importance of following the sustainability principles of palm oil farming to increase the smallholders’ WATP, and at the same time their willingness to participate in ISPO program. It is suggested for the government to intensify the campaign of the program to a wider range of smallholders to increase their knowledge and awareness of the certification program.Aisyah Dinda DewiIrhamMulyo Jangkung HandoyoDe Gruyterarticlesmallholderispo certificationwatpwillingness to participateAgricultureSAgriculture (General)S1-972ENOpen Agriculture, Vol 6, Iss 1, Pp 369-381 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	smallholder ispo certification watp willingness to participate Agriculture S Agriculture (General) S1-972
spellingShingle	smallholder ispo certification watp willingness to participate Agriculture S Agriculture (General) S1-972 Aisyah Dinda Dewi Irham Mulyo Jangkung Handoyo How does willingness and ability to pay of palm oil smallholders affect their willingness to participate in Indonesian sustainable palm oil certification? Empirical evidence from North Sumatra
description	A sample survey of palm oil smallholders was used to examine the amount of Willingness and Ability to Pay (WATP) and the factors that determine WATP as well as the impact of WATP on the willingness to participate of smallholders in Indonesian Sustainable Palm Oil (ISPO) certification scheme. Results reveal that the average amount of WATP accounted only half of the certification cost, implying that partial assistance is needed to support the smallholders through government subsidy. The study shows that WATP significantly affects the willingness to participate, and smallholders with higher WATP are more likely willing to participate in ISPO. Both WATP and willingness to participate are significantly determined by social norms (farmers collective impression) and awareness of the consequences of unsustainable farming practices. This result indicates the necessity to improve a positive impression on ISPO and increase awareness of the importance of following the sustainability principles of palm oil farming to increase the smallholders’ WATP, and at the same time their willingness to participate in ISPO program. It is suggested for the government to intensify the campaign of the program to a wider range of smallholders to increase their knowledge and awareness of the certification program.
format	article
author	Aisyah Dinda Dewi Irham Mulyo Jangkung Handoyo
author_facet	Aisyah Dinda Dewi Irham Mulyo Jangkung Handoyo
author_sort	Aisyah Dinda Dewi
title	How does willingness and ability to pay of palm oil smallholders affect their willingness to participate in Indonesian sustainable palm oil certification? Empirical evidence from North Sumatra
title_short	How does willingness and ability to pay of palm oil smallholders affect their willingness to participate in Indonesian sustainable palm oil certification? Empirical evidence from North Sumatra
title_full	How does willingness and ability to pay of palm oil smallholders affect their willingness to participate in Indonesian sustainable palm oil certification? Empirical evidence from North Sumatra
title_fullStr	How does willingness and ability to pay of palm oil smallholders affect their willingness to participate in Indonesian sustainable palm oil certification? Empirical evidence from North Sumatra
title_full_unstemmed	How does willingness and ability to pay of palm oil smallholders affect their willingness to participate in Indonesian sustainable palm oil certification? Empirical evidence from North Sumatra
title_sort	how does willingness and ability to pay of palm oil smallholders affect their willingness to participate in indonesian sustainable palm oil certification? empirical evidence from north sumatra
publisher	De Gruyter
publishDate	2021
url	https://doaj.org/article/767922d42a4a4dc29857f68fbb8601f1
work_keys_str_mv	AT aisyahdindadewi howdoeswillingnessandabilitytopayofpalmoilsmallholdersaffecttheirwillingnesstoparticipateinindonesiansustainablepalmoilcertificationempiricalevidencefromnorthsumatra AT irham howdoeswillingnessandabilitytopayofpalmoilsmallholdersaffecttheirwillingnesstoparticipateinindonesiansustainablepalmoilcertificationempiricalevidencefromnorthsumatra AT mulyojangkunghandoyo howdoeswillingnessandabilitytopayofpalmoilsmallholdersaffecttheirwillingnesstoparticipateinindonesiansustainablepalmoilcertificationempiricalevidencefromnorthsumatra
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How does willingness and ability to pay of palm oil smallholders affect their willingness to participate in Indonesian sustainable palm oil certification? Empirical evidence from North Sumatra

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