Abstract
This study is initiated by the current deep rooted problem of improved solid waste management services supply prevailing in Batu town and its primary objective is to estimate maximum willingness to pay of households’ using contingent valuation method. A total of 229 sampled households were interviewed in person. A single bounded closed ended followed by open-ended format were used to elicit willingness to pay for improved solid waste management services. Of 229 respondents 205 (89.52%) accepted bid values of improved solid waste management services provided to them. The data was analyzed both in descriptive and econometric models. The tobit model was used for empirical analyses. Households’ maximum willingness to pay for one sack of improved solid waste management services was 14.01 birr in open ended format. Households characteristics’ such as sex, income, occupation and education are positively determine the probability of accepting the given bid value of improved solid waste management services. The bid value and age of the respondent negatively affect the maximum willingness to pay for improved solid waste management services in tobit model. The study revealed that households are willing to pay more than of the current rate of 5 birr in average per one sack solid waste collection service. Therefore if the improvement scenario comes to effect in one way it solves the shortage of improved solid waste management services problems in the other way the town’s solid waste management office can collect more revenue from service charge.
Highlights
Solid Waste is anything that is neither liquid not gas and is discarded as unwanted [1]
The STATA 11.1 version software was employed in identifying factors affecting responses and respondents maximum willingness to pay for improved solid waste management service
About 19 (8.3%) respondents expressed true zero maximum willingness to pay for improved solid waste management service of which 115 (50.22%) said that solid waste should be collected for free, 52 (22.71%) replied that they have no enough money and 62 (27.02%) hesitated that the money will be misused, so that the improvement will not be realized depending on his perception of previous broken promises
Summary
Solid Waste is anything that is neither liquid not gas and is discarded as unwanted [1]. Solid waste management requires huge financial resources, which sometimes beyond the capacity of urban municipalities. Poor solid waste management can adversely affect the health of residents To improve this problem the town’s administrations together with all stakeholders need to improve the system. One way of measuring non market environmental goods such as solid waste management is through collecting and analyzing information on willingness to pay of users for change in quality or quantity of these goods based on their stated preference. Contingent valuation method is one technique of elicitation of willingness to pay in which we can create hypothetical market for non-market environmental goods in order to collect responses of households on how much they are willing to pay for improvements. The purpose of this paper is to estimate the maximum willingness to pay of households for improved solid waste management service through introducing hypothetical market with CV household surveys
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