Households’ Willingness to Pay for Improved SWM in Addis Ababa, Kolfe Keraniyo Sub City
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Date
2022-02-13
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A.A.U
Abstract
Designing improved solid waste collection service in Addis Ababa city is vital for to improve
the quality of life and welfare of the residents. However, households in all sub cities are
dissatisfied with the current solid waste collection and the budget gap prevents enhanced
solid waste collection service. It is necessary to create an improved solid waste collection
system in order to satisfy households and reduce budget gaps in solid waste collection
service. This study contributes by introducing an alternative collection service so as to
improve solid waste management and to fill the budget gap of the city. This study was
undertaken to investigate households’ willingness for new and improved solid waste
management in Kolfe Keraniyo Sub-City, Addis Ababa. The study used both cross-sectional
survey design and quantitative approach. It also used both secondary and primary data
sources. The primary data was collected via questionnaire. Stratified and simple random
sampling techniques were applied. The Tobit model was applied to analyze the factors
influencing households’ willingness to pay decisions for improved solid waste management
in Addis Ababa, particularly in Kolfe Keraniyo Sub-City. The results show that households’
willingness to pay for new improved solid waste management in Kolfe Keraniyo Sub-City is
significantly influenced by household income, size and age. The result also confirmed that
education and number of household members have job were related with households’
willingness to pay. Furthermore, households were on average willingness to pay Birr 31.1
million per month and Birr 373.2 million per year. Among others, the study suggests that in
order to fix the price for the improved urban household solid waste collection service the
municipality could use mean and maximum willingness to pay fee to charge on every low income and every high-income households, respectively. So that the municipal agency will
improve households’ solid waste collection service and narrow the budget gap.