Household's Willingness to Pay for Improved Waste Management: The Case of Mekele City, Tigray Region.
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Date
2009-01
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A.A.U
Abstract
The generation of solid waste has become an increasing environmental and public
health problem everywhere in the world, particularly in developing countries. In
Mekelle city, solid waste management is mainly provided by the municipality and it
has been measured and evaluated always based on the role and performance of the
service provider (supplier of the service) while demand side i.e. Willingness To Pay
(WTP) of the residents is ignored. Therefore, the aim of this paper is to estimate the
household's willingness to pay for one aspect of better environmental quality
(improved solid waste management) in Mekelle city.
[n this study, contingent valuation method (C VM) is used as a method of valuation.
The empirical models adopted by this study to determine the factors that influence
WTP of household heads for improved solid waste management are, To bit and Porbit
models.
The results of the Probit model revealed that probability of WTP of households for
improved solid waste management are significantly related to three explanatory
variables and all of the signs of these three variable coefficients (coefficients of
income, awareness of environmental quality and age) make intuitive sense and
significant at 1 %, 5% and 5% respectively. [n the To bit model, 8 out of 12 variables
have statistically significant impact on the amount of WTP for improved solid waste
management system.
The current payment for sanitation is below the WTP of the residents and the mean
WTP found in this study can be used for decision making in determining the service
Fee for improved solid waste management.
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Household's Willingness to Pay, Mekele City, Tigray Region