Aplikasi Willingness To Pay Sebagai Proksi Terhadap Variabel Harga: Suatu Model Empirik Dalam Estimasi Permintaan Energi Listrik Rumah Tangga

The objective of this paper is to explain the use of willingness to pay (WTP) as a proxy for price/tariff variable of household electricity demand model. WTP is amount of money that a consumer pays to obtain some goods or service. There are some justifications to use the WTP, i.e : 1) it can reveal the actual value or price of goods or service, 2) it can be used as a basic of determining the price, 3) theoretically, it can fulfill the assumption of Marshallian demand model. Willingness to pay can be obtain by using contingent valuation (CM) method with closed-ended referendum formal