The Opportunity Cost of Labor for Valuing Mangrove Restoration in Mahakam Delta, Indonesia

Abstract

Worldwide, damage to mangroves is alarming. Restoration is required to recover mangrove ecosystems, and communities’ involvement is a primary factor to reduce the threat to mangroves. Their participation might be interpreted as the appropriate decision concerning conservation and utilization of mangroves. Using a contingent valuation approach, this study assesses mangroves’ values to local communities through their willingness to contribute labor to obtain monetary value. Results showed that the opportunity cost of time was valued at IDR 398.76 thousand (US$29.99) a month or IDR 4.79 million (US$359.90) per year. A total annual benefit of mangrove restoration using the wage rate of time (WRT) is IDR 143 billion (US$10.77 million) per year. Accessing such information is crucial to making the appropriate decisions about conservation of mangroves within the context of developing countries that have poor coastal communities and low incomes. Tobit regression determined that five variables affect willingness to provide labor time and WRT significantly for mangrove restoration. These findings can support decision-makers with the relevant information for assessing a mangrove restoration project.