Abstract
This study tried to investigate urban community’s willingness to pay for improved solid waste management. Double Bounded Dichotomous Choice technique was used to examine household’s willingness to pay for improved solid waste management. The collected data further analyzed Bivariate probit and logistic regression models to investigate the mean and factors determining willingness to pay for solid waste management. A random sampling technique produced surveys from 190 households. Majority of the households indicated that the current solid wastes management is very poor. The econometric result showed that the mean and total willingness to pay from double bound elicitation method was 16US$/household/year and 590,473.22US$/year respectively, while the mean and total willingness to pay from open ended elicitation method were computed at 14US$/year and 524,306.8US$/year. The mean annual willingness to pay for solid waste management from double bound elicitation method was greater than from open ended elicitation method. Households’ age, size, income, education and amount of solid waste generated as well as bid value, were key determinants of solid waste management improvement. Hence, policy makers should target double bounded elicitation method than open ended elicitation method of eliciting the willingness to pay for solid waste management improvement. Key words: Willing to pay, logistic regression, Bivarate profite, contingent valuation method (CVM), solid waste management (SWM).
Highlights
Cities in developing countries are facing increasing generation of waste (Begum et al, 2007) and accompanying problems associated with waste collection and disposal (Begum et al, 2007) resulting from urbanization process that brings a lot of problems in most third world countires (Kwabena and Danso-Abbeam 2014)
Where Pi is a probability that Yi = 1 (WTP for improved SWM), Xi is a set of independent variables, Y is dependent variable (Responses of household to willingness to pay question which is either 1 if Yes or 0 if No), ß0 is the intercept which is constant, ß1 is the coefficient of the price that the households are willing to pay for improved solid waste management
This research was conducted on randomly selected sample of 190 households, and used eleven explanatory variables in the regression models based on the degree of theoretical importance and their impact on WTP
Summary
Cities in developing countries are facing increasing generation of waste (Begum et al, 2007) and accompanying problems associated with waste collection and disposal (Begum et al, 2007) resulting from urbanization process that brings a lot of problems in most third world countires (Kwabena and Danso-Abbeam 2014). Most studies are carried out on solid waste management practice improvement by given more focuses on waste generation rate of urban areas (Lemma, 2007; Melaku, 2008) and even special emphasis is given to the determinants of recycling of solid wastes; which is revolving on developed nations (Sterner and Bartelings, 1999). Such assessments do not guarantee to conclude about the factors affecting households‟ willingness to pay for improved SWM. For that reason, based on an in-person household survey, the objectives here are (i) to assess the existing situation of SWM, (ii) to estimate households‟ WTP for improved SWM using the contingent valuation method (CVM) and (iii) to identify socioeconomic determinants of households‟ WTP for improved SWM
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