Author : Tri Anggraeni Kusumastuti

Summary : The objectives of research were to examine environmental cost through compensation and perception of people nearby the pig farm's location in Gamping District. The data used in this research were primary data from pig farm's and institution. CVM (Contingent Valuation Method) and Likert Scale were applied in this research. The results of the research showed that compensation wasn't common because the pig farm's and people have the low of education and socio economic. Demand from people or Willingness To Accept (WTA) amount of 2,758,330 rupiah per year was higher than pig farm's compensation or Willingness To Pay (WTP) amount of 1,882,665 rupiah per year. It was caused by pig farm's was a sensitive livestock and so that demand from people was higher and may be estimate data wasn't accurate because very difficult to account about nominal value. Based on three aspect (economic, social, and environment) showed that perception of people in Ambarketawang village supported pig farm's operation because the pig farm's have the high tolerance with community for village development but this may not be so in other pig farm's location.