UNIVERSITI PUTRA MALAYSIA WILLINGNESS TO PAY FOR WATERSHED CONSERVATION AT HULU LANGAT, MALAYSIA

Similar documents
UNIVERSITI PUTRA MALAYSIA MODELING OF SALT WATER INTRUSIONS INTO LANGAT RIVER ESTUARY, MALAYSIA

EVALUATION ON MALAYSIA SAFETY AND HEALTH INDUCTION COURSE FOR CONSTRUCTION WORKER ALFRED GOH PUI TECK UNIVERSITI TEKNOLOGI MALAYSIA

FACTORS INFLUENCING THE SUCCESSFUL IMPLEMENTATION OF CRIME PREVENTION THROUGH ENVIRONMENTAL DESIGN PROGRAM NATASHA AZIM BINTI HAJI HUSSIN

IMPROVEMENT OF DISASTER COORDINATION PREPAREDNESS MODEL FOR SOFT-TARGET ORGANIZATIONS ABUBAKAR MOHAMMED BICHI

POTENSI AKTIVITI MEMANCING LAUT DALAM SEBAGAI TARIKAN PELANCONGAN DI KUALA ROMPIN ISMAIL BIN HAJI MUDIN UNIVERSITI TEKNOLOGI MALAYSIA

DESIGN AND DEVELOPMENT OF A HAND MASSAGE DEVICE FOR BLOOD DONATION PROCESS MOHD FAHRI BIN ABD GHAFAR UNIVERSITI TEKNOLOGI MALAYSIA

A HYBRID BOX-JENKINS AND DECOMPOSITION MODEL FOR DROUGHT FORECASTING IN KUALA TERENGGANU HO MEE CHYONG UNIVERSITI TEKNOLOGI MALAYSIA

EFFECT OF AGGREGATE GRADATION ON POROUS ASPHALT PROPERTIES FARAHIYAH BINTI ABDUL RAHMAN

UNIVERSITI PUTRA MALAYSIA

MOVING SHIP DETECTION FOR UNMANNED AERIAL VEHICLE USING ATOM PROCESSOR FOR CAMERA VISION MUHD FIRDAUS MUHD YUSOFF UNIVERSITI TEKNOLOGI MALAYSIA

Earthwork Activities in Private Housing Industry

HUBUNGAN ANTARA AMALAN KEPIMPINAN TRANSFORMASI PEGAWAI PELAJARAN DAERAH DENGAN KETEGANGAN KERJA GURU BESAR

DETERM!N!NG EMERGENCY EVACUAT!ON A!D FOR FLOOD D!SASTER PREPAREDNESS NURSHAFEENA B!NT! KAMAL UN!VERS!T! TEKNOLOG! MALAYS!A

FAKTOR-FAKTOR PENYEBAB TUNGGAKAN CUKAI TANAH DI DAERAH KECIL SUNGAI SIPUT NASD RAHAYU BINTI ABDUL RAHIM

RELIABILITY OF SAFETY PERFORMANCE INDICATOR: COMPLIANCE AND EFFECTIVENESS OF SAFETY PROGRAMS IN CONSTRUCTION SITE RAMES KUMAR SHANMUGAM

IMPROVEMENT OF ACCURACY LEVEL OF AUTOMOTIVE FRONT FENDER SHIELD ASSEMBLY USING PROCESS FAILURE MODE AND EFFECT ANALYSIS AND CONTROL PLAN TECHNIQUES

UNIVERSITI TEKNOLOGI MALAYSIA

EVALUATION OF DIFFERENT TECHNIQUES FOR GENERATING LANDSLIDE SUSCEPTIBILITY MAP JAVAD MIRNAZARI

DETERMINANT OF UTHM ACADEMIC STAFF S PREFERENCE ON CHOOSING HOSPITALS. MUHAMMAD IZZAT SYAHMI BIN ADZNAM

THE CHALLENGES AND SUCCESS FACTORS IN TOURISM ENTREPRENEURSHIP: CASE STUDY OF ENTREPRENEURS AT JONKER STREET, MALACCA

FACTORS THAT INFLUENCE THE SUCCESS OF ENTREPRENEURS: THE CASE OF AMANAH IKHTIAR MALAYSIA (AIM) PROGRAM

MOTIVATION ATTRIBUTES TO BECOME A GRADUATE ENTREPRENEUR AMONG TECHNICAL UNIVERSITY STUDENT

DESIGN OF A SECURE AND EFFICIENT MULTIPLE COINS PLUS MULTIPLE DENOMINATIONS E-CASH SCHEME CHANG YU CHENG UNIVERSITI TEKNOLOGI MALAYSIA

UNIVERSITI PUTRA MALAYSIA PERCEPTION OF MANAGEMENT PERSONNEL ON THE INTRODUCTION OF HOME OFFICE SYSTEM IN THEIR ORGANISATIONS GUNA SEELAN RETHINAM

UNIVERSITI PUTRA MALAYSIA TECHNICAL EFFICIENCY AND ITS DETERMINANTS IN THE GAMBIA SECONDARY HEALTH CARE SERVICE DELIVERY

ROAD MAINTENANCE MANAGEMENT IN KANO STATE: CASE STUDY AT KANO METROPOLITAN MURTALA MAHMOUD FAROUQ

OVERLAPPED AND SHADOWED TREE CROWN SEGMENTATION BASED ON HSI COLOR MODEL AND WATERSHED ALGORITHM

EQUITY CROWDFUNDING IN MALAYSIA: AN IMPLEMENTATION OF SETTING VALUATIONS ALVIN HONG PHING YEAN UNIVERSITI TEKNIKAL MALAYSIA MELAKA

TATACARA PERMOHONAN Application procedure

NATURAL DYE PRODUCTS BUSINESS PLAN NOR ASHIKIN BINTI ABDUL HAMID MASTER OF CHEMICAL ENGINEERING WITH ENTREPRENEURSHIP UNIVERSITI MALAYSIA PAHANG

THE STUDY ON INTERNAL MARKETING: TRANSFORMATIONAL LEADERSHIP STYLE AND LEARNING ORGANIZATION IN HEALTH ORGANIZATION NURSYIFAA SYAHIRA BT RUSLAN

THE IMPACT OF THE FACEBOOK WEBSITE QUALITY ON USER S PERCEIVED ATTITUDE, INTENTION AND LOYALTY AMONG STUDENTS OF UTM TAMER ADEL SALEH ALAJRAMI

ADOPTION OF ELECTRONIC SCHEDULING TO REDUCE WAITING TIME IN THE HOSPITALS SITI KHAIRUNNISA BINTI BASRI

Survey on Perak and Selangor 3 messages

CROWDFUNDING FOR RESEARCH: A CASE STUDY IN RESEARCH MANAGEMENT CENTRE IN MALAYSIA

Mulai 16 FEBRUARI 2018 hingga 15 MAC 2018

DETERMINATION OF LEAD CONTENT IN WHITENING CREAM USING LASER INDUCED BREAKDOWN SPECTROSCOPY ANALYSIS WAN NORSYUHADA BT WAN MOHD SHUKRI

RPK 332 Urban Design [Rekabentuk Bandar]

Analisis Metabolisma Bandar Menggunakan Teknik Material Flow Analysis (MFA) di Seremban. Sharif Shofirun Bin Sharif Ali (P85768)

Pengetahuan komuniti dan amalan pengurusan sisa pepejal di Negeri Sembilan

UNIVERSITI PUTRA MALAYSIA FACTORS INFLUENCING THE SUCCESS OF ICT TELECENTRE PROJECTS IN RURAL COMMUNITIES IN MALAYSIA

Faculty of Engineering

UNIVERSITI PUTRA MALAYSIA

HOSPITAL BED MANAGEMENT SYSTEM SYUKRIYAH BINTI MD.AZAM UNIVERSITI TEKNIKAL MALAYSIA MELAKA

THE ASSESSMENT OF BUILDING DEFECTS MAINTENANCE IN HOSPITAL BUILDING NORDIYANA BINTI AB.LLAH

PERLAKSANAAN AKTA KESELAMATAN DAN KESIHATAN PEKERJAAN, 1994 DI INSTITUT LATIHAN AWAM HELMI BIN HJ. HARON UNIVERSITI TEKNOLOGI MALAYSIA

Pencapaian Program Pemindahan Ilmu Tatacara Menyelamat Sewaktu Banjir Dan Kaedah Pemulihan Dalam Kalangan Komuniti Kuala Krai, Kelantan, Malaysia

Sistem Tagal: Pengurusan Biosfera Tradisional dalam Industri Pelancongan

UTM as RU: The Current Status and Our Preparation for MyRA II (Innovation and Commercialization)

UNIVERSITI PUTRA MALAYSIA


FAKULTI PERUBATAN DAN SAINS KESIHATAN JABATAN PEMAKANAN DAN DIETETIK SEMESTER 6, SESI 2016/2017 LAPORAN LATIHAN INDUSTRI

UNIVERSITI PUTRA MALAYSIA INTERROLE CONFLICT AND SOCIAL SUPPORT: A STUDY OF MARRIED WOMEN NURSES WONG YUET CHEE FPP

KECENDERUNGAN KEUSAHAWANAN DIKALANGAN PELAJAR KOLEJ KOMUNITI BANDAR PENAWAR DAN KOLEJ KOMUNITI PASIR GUDANG

Sistem tagal dalam industri pelancongan: Manfaat kepada komuniti

PEMANTAPAN PROSES MENENTUKAN PAMPASAN MENCUKUPI DALAM PENGAMBILAN TANAH DI NEGERI KEDAH DARUL AMAN MAZLAN BIN ISMAIL

Laporan Aktiviti PI1M Kg Jepak

J\ Impacts of disturbance o~ fish communities in Sungat Pur, Terengganu I Annie Nums anak B1lly.

A STUDY OF READING HABITS AND INTERESTS AMONG SECONDARY SCHOOL STUDENTS IN SMK KUALA TELEMONG, HULU TERENGGANU, TERENGGANU.

RESEARCH MANAGEMENT CENTRE (RMC)

UNIVERSITI TEKNIKAL MALAYSIA MELAKA

FAKTOR-FAKTOR PENYEBAB TUNGGAKAN CUKAI TANAH DI DAERAH KECIL SUNGAI SIPUT NASD RAHAYU BINTI ABDUL RAHIM

THE EDGE KUALA LUMPUR RAT RACE 2018

PENERBIT UNIVERSITI MALAYSIA SABAH Kota Kinabalu Sabah Malaysia

Buletin UNIVERSITI TENAGA NASIONAL 21/2017

The impact of waste disposal management on the water quality of rivers in Malaysia: Lessons from Pajam waste disposal sites, Negeri Sembilan

Menganalisis pola dan arah aliran hujan di Negeri Sembilan menggunakan kaedah GIS poligon Thiessen dan kontur Isoyet

FACTORS CONTRIBUTING TO ABSENTEEISM AMONGST NURSES: A MANAGEMENT PERSPECTIVE. N'wamakhuvele Maria Nyathi

Mohd Aqmin Abdul Wahab Universiti Kebangsaan Malaysia. Hazrul Izuan Shahiri Universiti Kebangsaan Malaysia

STUDY ON THE DEMAND FOR FAMILY TAKAFUL PRODUCT IN SENAWANG, NEGERI SEMBILAN ABDUL HADI BIN MOHD GHAZALI SITI NASUHA BINTI ROSLAN

THE DEVELOPMENT OF SMALL AND MEDIUM SIZED CONSTRUCTION FIRMS IN NIGERIA USING ABSORPTIVE CAPACITY BILAU ABDULQUADRI ADE UNIVERSITI TEKNOLOGI MALAYSIA

Semua Staff, Doktor, Jururawat Dan semua Kakitangan Hospital dan, Jabatan Ortopedik

FAKTOR-FAKTOR KETIDAKPENGHUNIAN BANGUNAN KOMERSIAL DI BANDAR MERU RAYA, IPOH, PERAK

A. MAKLUMAT PROJEK PROJECT INFORMATION

Kajian Indeks Kualiti Air di Lembangan Sungai Paka, Terengganu (Water Quality Index Study in Paka River Basin, Terengganu)

SISTEM MAKLUMAT GEOGRAFI (GIS) DAN SEKTOR KESIHATAN AWAM: KAJIAN DEMAM DENGGI DI BANDAR BARU BANGI DAN KAJANG

PENGARUH PEMBANGUNAN BANDAR TERHADAP PENYERTAAN SOSIAL PENDUDUK KAMPUNG BANDAR DI WILAYAH UTARA MALAYSIA

NOTICE OF PROPOSED RECOMMENDATIONS FOR FEDERAL AND STATE CONSTITUENCIES IN THE STATE OF SELANGOR AS REVIEWED BY THE ELECTION COMMISSION IN 2018

KEBERKESANAN JAWATANKUASA KEMAJUAN DAN KESELAMATAN KAMPUNG (JKKK) DI DAERAH KUBANG PASU, KEDAH.

KNOWLEDGE TRANSFER PROGRAMME (KTP) LAPORAN KEMAJUAN BERKALA / PERIODIC PROGRESS REPORT

INTEGRATED PRIMARY HEALTH CARE: THE ROLE OF THE REGISTERED NURSE MPHO DOROTHY MOHALE

KERANGKA PROGRAM KERJAYA BERSTRUKTUR ( STRUCTURED CAREER PROGRAM FRAMEWORK ) PUSAT KERJAYA DAN KAUNSELING UNIVERSITI TEKNOLOGI MARA

Menganalisis pola dan arah aliran hujan di Negeri Sembilan menggunakan kaedah GIS Poligon Thiessen dan Kontur Isoyet

PASARAN HARTA TANAH KEDIAMAN BERDASARKAN IMPLIKASI PENENTUAN HARGA RUMAH OLEH PEMAJU. KAJIAN KES NUSAJAYA ZARINATUL AIN BT AKHIRUDIN

Salmiah binti Mohd Salleh, Noor Afziha binti Ngarisan dan Ramlah binti Mohd Noor Kolej Komuniti Hulu Langat.

PERMOHONAN PENGGUNAAN RUANG PASCASISWAZAH POSTGRADUATE WORKSPCE APPLICATION FORM. Gambar Pasport / Passport Picture. 2 pcs. Disokong / Recommended

SISTEM SOKONGAN PERANCANGAN (PSS): ANALISIS APLIKASI BAGI SEKTOR-SEKTOR TERPILIH

Pengenalan ABSTRAK. Kata kunci: kesediaan, kakitangan, penempatan semula, UiTM Kampus Raub. Definisi

Universiti Sains Islam Malaysia (USIM) Abstrak. Abstract

A MODEL FOR INCORPORATING INDIGENOUS POSTNATAL CARE PRACTICES INTO THE MIDWIFERY HEALTHCARE SYSTEM IN MOPANI DISTRICT, LIMPOPO PROVINCE, SOUTH AFRICA

PERANAN JABATAN KEBUDAYAAN DAN KESENIAN NEGARA NEGERI SEMBILAN DALAM MEMPROMOSIKAN ALAT MUZIK CAKLEMPONG

MEDIA SOSIAL INTERAKTIF ALUMNI FTSM

AMALAN PEWARISAN TANAH ADAT BERDASARKAN UNDANG-UNDANG TANAH ADAT DI KALANGAN MASYARAKAT: KAJIAN DI NEGERI SEMBILAN 1

SEJARAH PERKEMBANGAN BEKALAN AIR DOMESTIK DI NEGERI KEDAH SEHINGGA TAHUN 1957

PROSPEK DAN CABARAN BAGI MENGEKALKAN STATUS TANAH RIZAB MELAYU PADA ABAD KE-21 NURNABIHAH BINTI ZULKAPAR UNIVERSITI TEKNOLOGI MALAYSIA

TELECOMMUTING FROM THE COMPANY PERSPECTIVE: EMPLOYER INTENTION TO IMPLEMENT TELECOMMUTING MUSTAFA MOHAMED MUSTAFA MAHDI

PENEMPATAN PERUMAHAN MASYARAKAT PINGGIRAN DI DAERAH HULU LANGAT, SELANGOR. Samruhaizad Samion & Azahan Awang

Untuk kerja-kerja pelancaran 'U Beam' dan kerja-kerja yang berkaitan dengan MRT

NOOR SHAHIDA BINTI ROSLI MASTER OF SCIENCE UNIVERSITI MALAYSIA TERENGGANU

ISU KENAIKAN HARGA RUMAH DI KAWASAN PINGGIR BANDAR: SATU TINJAUAN DI MUKIM SEMENYIH, DAERAH HULU LANGAT, SELANGOR

Transcription:

UNIVERSITI PUTRA MALAYSIA WILLINGNESS TO PAY FOR WATERSHED CONSERVATION AT HULU LANGAT, MALAYSIA NORFASHAH BIN MOHAMED FPAS 2013 12

WILLINGNESS TO PAY FOR WATERSHED CONSERVATION AT HULU LANGAT, MALAYSIA By NORFASHAH BIN MOHAMED Thesis Submitted to the School of Graduate Studies, Universiti Putra Malaysia, In Fulfillment of the Requirements for the Degree of Master of Science July 2013

COPYRIGHT All material contained within the thesis, including without limitation text, logos, icons, photographs and all other artwork, is copyright material of Universiti Putra Malaysia unless otherwise stated. Use may be made of any material contained within the thesis for non-commercial purposes for the copyright holder. Commercial use of material may only be made with the express, prior, written permission of Universiti Putra Malaysia. Copyright Universiti Putra Malaysia

This thesis is dedicated to my beloved wife, Nik Nor Rahimah and my son, Abid Zahran. ii

Abstract of thesis presented to the Senate of Universiti Putra Malaysia in fulfillment of the requirement for the degree of Master of Science WILLINGNESS TO PAY FOR WATERSHED CONSERVATION AT HULU LANGAT, MALAYSIA By NORFASHAH BIN MOHAMED July 2013 Chairman : Mad Nasir Shamsudin, PhD Faculty : Environmental Studies Watershed is the one of the many goods and services provided by tropical forests in Malaysia. Among the variety of watershed protection benefits, domestic water supply from watershed is crucial, particularly in Hulu Langat district. Hulu Langat watershed is one of the environment sensitive areas that need to be protected. This area supply domestic fresh water to the Hulu Langat communities. The essence of this study is to evaluate the economic benefit for conserving watersheds services to sustain domestic water supply at Hulu Langat, Selangor. This valuation is envisaged to yield the value of willingness to pay (WTP) of the communities for the conservation of the watershed. Besides, this study also intends to evaluate the communities awareness towards watershed conservation. The contingent valuation method (CVM) was conducted to estimate communities WTP for the conservation. The primary data obtained from questionnaire survey through personal interview. About 500 respondents have been interviewed in six sub districts that utilize water supply from Hulu Langat watershed area. In CVM, payment vehicle used was increment of monthly water bill of Hulu Langat communities for the proposed watershed conservation program. The questionnaire design was based on dichotomous choice format. The data analyses used was binary logit model to estimate the basic single bounded model and double bounded model. In this study, WTP relies on the socioeconomic variables which are bid amount, income, number of year attainment in education and residential area (urban or suburban) of the respondents. The results from single bounded model show that the communities are willing to pay RM10.13 per person monthly with mean WTP of 23.10 percent increment in monthly water bill per household. In double bounded dichotomous choice model, the iii

results revealed that the mean WTP value is 19.25 percent increment in monthly water bill. Parallel to the WTP results, the communities also have awareness to protect the watershed for sustainable fresh water supply. Therefore, an increment in monthly water bill could be implemented in Hulu Langat district area to assist watershed conservation initiatives. Firm policies for conservation can be executed like reforestation, increase in regular patrol, monitoring activities in the forest and effective forest management to ensure reduction in illegal logging, forest fire and wildlife poaching. iv

Abstrak tesis yang dikemukakan kepada Senat Universiti Putra Malaysia sebagai memenuhi keperluan untuk ijazah Master Sains KESANGGUPAN MEMBAYAR UNTUK PEMULIHARAAN KAWASAN TADAHAN AIR DI HULU LANGAT, MALAYSIA Oleh NORFASHAH BIN MOHAMED Julai 2013 Pengerusi : Mad Nasir Shamsudin, PhD Fakulti : Pengajian Alam Sekitar Kawasan tadahan air merupakan salah satu perkhidmatan yang diperolehi daripada hutan tropika di Malaysia. Kawasan tadahan air mempunyai banyak fungsi, dimana fungsi terpentingnya adalah membekalkan air domestik, khususnya kepada komuniti di Hulu Langat. Kawasan tadahan air Hulu Langat merupakan salah satu kawasan alam sekitar yang sensitif dimana ia perlu dipelihara. Kawasan ini membekalkan air domestik bersih kepada masyarakat di Hulu Langat. Tujuan kajian adalah untuk menilai manfaat ekonomi bagi pemuliharaan kawasan tadahan air untuk mengekalkan bekalan air domestik di Hulu Langat, Selangor. Penilaian ini dijangka untuk menghasilkan nilai kesanggupan untuk membayar oleh masyarakat setempat untuk pemuliharaan kawasan tadahan air berkenaan. Selain itu, kajian ini juga bertujuna untuk menilai kesedaran masyarakat terhadap pemuliharaan kawasan tadahan air. Kaedah penilaian kontingen (CVM) telah dijalankan untuk menganggar kesanggupan masyarakat untuk membayar bagi pemuliharaan kawasan tadahan air. Data primer yang diperolehi daripada kajian soal selidik melalui temubual peribadi. Kira-kira 500 orang responden telah ditemubual di enam kawasan di sekitar daerah Hulu Langat yang menggunakan bekalan air daripada kawasan tadahan air Hulu Langat. di dalam CVM, kaedah bayaran yang digunakan adalah kenaikan bil air bulanan bagi masyarakat di daerah Hulu Langat untuk pembiayaan program pemuliharaan kawasan tadahan air seperti yang dicadangkan. Rekabentuk soal selidik adalah berdasarkan format pilihan dichotomous. Analisis data yang digunakan adalah model binary logit untuk menganggar model asas single bounded dichotomous choice dan model double bounded dichotomous choice. Di dalam kajian ini, nilai kesanggupan untuk membayar bergantung kepada pembolehubah iaitu nilai v

tawaran, jumlah pendapatan, bilangan tahun dalam pendidikan dan kawasan kediaman (bandar atau pinggir bandar). Hasil daripada model asas single bounded dichotomous choice menunjukkan bahawa masyarakat sanggup membayar RM10.13 sebulan iaitu kenaikan 23.10 peratus dalam bil air bulanan untuk setiap isi rumah. Dalam model double bounded dichotomous choice, hasil menunjukkan bahawa nilai min kesanggupan membayar ialah kenaikan 19.25 peratus dalam bil air bulanan dengan nilai median sebanyak 18.40 peratus kenaikan dalam bil air bulanan. Selari dengan hasil nilai kesanggupan untuk membayar, masyarakat juga mempunyai kesedaran untuk memulihara kawasan tadahan air untuk bekalan air bersih yang berpanjangan. Oleh itu, kenaikan bil air bulanan boleh dilaksanakan di kawasan Hulu Langat untuk membantu pelaksanaan program pemuliharaan kawasan tadahan air di Hulu Langat. Polisi untuk pemuliharaan boleh dilaksanakan seperti penanaman semula hutan, peningkatan rondaan, pemantauan aktiviti di hutan dan pengurusan hutan yang berkesan untuk memastikan pengurangan dalam pembalakan haram, kebakaran hutan dan pemburuan hidupan liar. vi

ACKNOWLEDGEMENTS First and foremost, I would like to express my sincere appreciation and deepest thanks to Prof Datuk Dr Mad Nasir Shamsudin, chairman of supervisory committee, for his precious advice, ideas and guidance throughout my research and this thesis writing. My appreciation also goes to the committee member, Prof Dr Awang Nor Abd Ghani, who helped me greatly by giving suggestion and comment throughout my study and his patience in following my progress. He also gave the idea in selection of study area and guided me in term of forestry valuation. My sincere greatest thanks also go to Associate Prof Dr Alias Radam, for his suggestion and guidance in the statistical analysis. My special thanks to Universiti Putra Malaysia for providing funding and necessary materials throughout my study. I also thanks to all Faculty of Environmental Studies' officers for the help during my study. My loving thanks to my wife, Nik Nor Rahimah binti Nik Ab Rahim for being so patient and supportive, and my son Abid Zahran. Without their encouragement and understanding it would have been impossible for me to finish this study. Thanks for all the patience, care, sacrifices and huge love for me. vii

I certify that a Thesis Examination Committee has met on 30 July 2013 to conduct the final examination of Norfashah bin Mohamed on his thesis entitled Willingness to Pay for Watershed Conservation at Hulu Langat, Malaysia in accordance with the Universities and University College Act 1971 and the Constitution of the Universiti Putra Malaysia [P.U.(A) 106] 15 March 1998. The committee recommends that the student be awarded the Master of Science. Members of the Thesis Examination Committee were as follows: Zelina Zaiton Ibrahim, PhD Associate Professor Faculty of Environmental Studies Universiti Putra Malaysia (Chairman) Khalid b Abdul Rahim, PhD Professor Faculty of Economics and Management Universiti Putra Malaysia (Internal Examiner) Muhd Rusli bin Yacob, PhD Associate Professor Faculty of Environmental Studies Universiti Putra Malaysia (Internal Examiner) Norlida Hanim binti Mohd Salleh, PhD Associate Professor Faculty of Economics and Business University Kebangsaan Malaysia (External Examiner) NORITAH OMAR, PhD Associate Professor and Deputy Dean School of Graduate Studies Universiti Putra Malaysia Date: 19 May 2014 viii

This thesis was submitted to the Senate of Universiti Putra Malaysia and has been accepted as fulfillment of the requirement for the degree of Master of Science. The members of the Supervisory Committee were as follows: Mad Nasir Shamsudin, PhD Professor Faculty of Environmental Studies Universiti Putra Malaysia (Chairman) Awang Noor Abd Ghani, PhD Professor Faculty of Forestry Universiti Putra Malaysia (Member) Alias Radam, PhD Associate Professor Faculty of Economic and Management Universiti Putra Malaysia (Member) BUJANG BIN KIM HUAT, PHD Professor and Dean School of Graduate Studies Universiti Putra Malaysia Date: ix

Declaration by graduate student I hereby confirm that: this thesis is my original work; quotations, illustrations and citation have been duly referenced; this thesis has not been submitted previously or concurrently for any other degree at any other institutions intellectual property from the thesis and copyright of thesis are full-owned by Universiti Putra Malaysia, as according to the Universiti Putra Malaysia (Research) Rules 2012; written permission must be obtained from supervisor and the office of Deputy Vice Chancellor (Research and Innovation) before thesis is published (in the form of written, printed or in electronic form) including books, journals, modules, proceedings, popular writings, seminars paper, manuscripts, posters, reports, lecture note, learning modules or any other materials as stated in the Universiti Putra Malaysia (Research) Rules 2012; there is no plagiarism or data falsification/fabrication in the thesis, and scholarly integrity is upheld as according to the Universiti Putra Malaysia (Graduate Studies) Rules 2003 (Revision 2012-2013) and the Universiti Putra Malaysia (Research) Rules 2012. The thesis has undergone plagiarism detection software. Signature: Date: Name and Matric No : x

Declaration by Members of Supervisory Committee This is to confirm that: the research conducted and the writing of this thesis was under our supervision; supervision responsibilities as started in the Universiti Putra Malaysia (Graduate Studies) Rules 2003 (Revision 2012-2013) are adhered to Signature: Signature: Name of Name of Chairman of Member of Supervisory Supervisory Committee: Committee: Signature: Signature: Name of Name of Member of Member of Supervisory Supervisory Committee: Committee: xi

TABLE OF CONTENTS DEDICATION ABSTRACT ABSTRAK ACKNOWLEDGEMENTS APPROVAL DECLARATION LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATIONS CHAPTER 1 INTRODUCTION 1.1 Forest and Watershed in Malaysia 1 1.2 Deforestation and Impacts on Watershed 2 1.3Water Shortage in Malaysia 5 1.4 Hulu Langat Watershed 7 1.5 Problem Statement 9 1.6 Objectives of the study 10 1.7 Significance of Study 11 2 LITERATURE REVIEW 2.1 Forest Reserve in Selangor 12 2.1.1 Types and Functions of Forest Reserve 13 2.1.2 Watershed System in Forest Reserve 14 2.2 Economic Benefit of Watershed Conservation 14 2.3 General Approach on Economic Valuation 15 2.3.1 Market Based Methods 17 2.3.2 Non-Market Based Methods 17 2.3.3 Surrogate Market Method 18 2.4 Measurement of Economic Values 18 2.4.1 Utility Theory 19 2.4.2 Demand Theory 20 2.5 Contingent Valuation Method 22 2.6 Conceptual Framework 24 2.7 Previous Related Studies 25 ii iii v vii viii x xiv xv xvi 3 METHODOLOGY 3.1 Theoretical Framework 28 3.1.1 Economic Valuation Analysis 29 3.2 Data Sources 29 3.2.1 Study Area 30 3.2.2 Sampling Area 30 3.2.3 Sample Size 32 3.2.4 Sampling Plan 32 3.3 Questionnaire Design 33 3.4 Statistical Analysis 34 3.4.1 Descriptive Analysis 34 3.4.2 Factor Analysis 35 xii

3.4.3 Willingness to Pay Estimation 35 3.4.3.1 Single Bounded Dichotomous Choice 35 3.4.3.2 Double Bounded Dichotomous Choice 36 4 RESULTS AND DISCUSSION 4.1 Descriptive Analysis 39 4.1.1 Socioeconomic Profiles 39 4.1.2 Awareness Analysis 41 4.1.3 Perception Analysis 42 4.2 Factor Analysis 43 4.2.1Measure of Sampling Adequacy and Correlation Matrix Significance 45 4.2.2 Communality 46 4.2.3 Eigenvalue Criteria and Variable Explained 46 4.2.4 Results of Factor Analysis 47 4.2.5 Reliability Analysis 49 4.3Willingness to Pay Analysis 49 4.3.1 Single Bounded Dichotomous Choice Model 50 4.3.2 Double Bounded Dichotomous Choice Model 53 5 SUMMARY AND CONCLUSION 5.1 Summary 55 5.2 Conclusion and Policy Recommendations 57 5.3 Limitations of the Study 58 5.4 Recommendations for Future Research 58 REFERENCES 60 APPENDICES 74 BIODATA OF STUDENT 83 LIST OF PUBLICATIONS 84 xiii