Estimating economic value of household municipal solid waste reduction program: A willingness-to-accept (WTA) approach

Abstract

This study is aimed at estimating economic value of municipal solid waste (MSW) reduction program in the Mekong Delta by employing the willingness-to-accept (WTA) approach. This research will address two important issues in current growing literature about MSW management. First, this is the first research to evaluate economic value of the MSW reduction program in Mekong Delta. The second major contribution is the approach employed - supply curve through the WTA. This program requires community participation and provision incentives to them, therefore the requirement of public acceptance through WTA is estimated. Findings reveal that people are willing to accept an average of 30,000 VND/month for the MSW reduction program. Assume that household's MSW management fee subsidy policy is canceled, and the household is facing a full fee for the MSW collection (about 150,000 VND/month), they are willing to classify MSW at source to get a reduction of 30,000 VND or they are willing to accept a fee of 120,000 VND/month. In addition, it is interesting that more than 70 percent of people are willing to participate in this program. The determinants of WTA identified include the type of MSW at the source, education level, type of urban areas. This research then proposes that MSW management implementation policy should be focused on motivating households and improving people's perception of MSW. In case of government budget deficit, community participation would be more appropriate to manage MSW.