Econometrics

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Browsing Econometrics by Author "Berihun, Yonas"

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    Analysis of Households’ Preferences For improved Solid Waste Management in Adama Town: Application of Choice Modeling
    (Addis Ababa University, 2010-11) Berihun, Yonas; Alemu, Tekie (PhD)
    In recent years, the generation of solid waste is increasing in Adama town due to rapid urbanization and population growth. Currently, out of the total waste generated in the town about 50-60 % is properly collected and disposed. The remaining amount of the waste is disposed on open spaces, streets and drainage channels along roadsides of the town. This uncollected solid waste in many places of the town may have serious adverse effect on public health and environmental quality. Moreover, the formal dumpsite, located some 8 km away from the center of the town, does not appear to have proper measures to control runoffs from rain fall. Thus, conducting a study on the demand for improved solid waste collection and disposal services is essential. The principal objective of this study is to analyze households’ preferences for improved solid waste management in Adama town. Different solid waste management options are defined by the service attributes of frequency of waste collection from households, separation of waste at source, pollution control measures at the dumpsite and monthly service charge. The study employed the choice modeling technique, which is a stated preference method for the valuation of non-marketed environmental goods and services. The survey was administered on a random sample of 188 households in the town. The data was analyzed using Multinomial Logit and Random Parameter Logit models. The results of the study revealed that improvement in the levels of all the non-monetary attributes of the service increase the utility of respondents. In addition, households with higher monthly total income, larger family size, as well as respondents with higher levels of education favor the improved plans of solid waste management more frequently. Furthermore, households have a positive willingness to pay for improvement in the level of each non-monetary attribute. In conclusion, households in Adama town are willing to pay for improved solid waste collection and disposal services. The implication is that any policy directed towards the provision of effective solid waste management in the town should incorporate demand side information.