The Resident’s Willingness to Pay for Improved Better Sanitation, A Case of Woreda 06, Yeka Sub-City, Addis Ababa
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Date
2020-07
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Abstract
This paper examines the resident’s willingness to pay for improved better sanitation, a case of
woreda 06, Yeka sub-city, Addis Ababa a sample of 359 households. The data generated to meet
this objective were collected via semi structured questionnaires. The survey is cross sectional
and also descriptive and explanatory research designs were used. This study is applied
descriptive statistics and binary logit model to investigate the impact of resident’s willingness to
pay for improved better sanitation the logistic regression model has as dependent variable the
WTP (willing (yes) and not willing (no)). The explaining variables, age of household head,
gender, educational level, marital status, distance from garbage, household size, income,
housing unit and occupation of household head. The result of the econometric model indicate
that residents willingness for the distance from garbage to pay households who are below 200m
are 100 percent times more likely willing to sanitize as compared to the households who are
between 201-300m. The age situation is significant at the 5 percent level of significance (p-value
0.035). Households who are owned are 86.3 percent times more likely willing to sanitize as
compared to the households who are rented. Households who are employed are 206.806 times
more likely willing to sanitize as compared to the households who are unemployed. Households
who are literate are 1006.355 times more likely willing to sanitize as compared to compared to
the households who are illiterate. Households who have monthly income below 3500 birr are
highly willing to sanitize as compared to the households who have monthly income 3501-5500
birr, households who have monthly income below 3500 birr as compared to the households who
have monthly income 3501-5500 birr and households who have monthly income below 3500 birr
as compared to the households who have monthly income 3501-5500 birr. However, there is no
statistically significant evidence as whether gender and marital status of head of household’s in
woreda 06 yeka subcity affects the resident’s WTP. This study recommends that there is a need
to educate people about the benefits associated with improved sanitation services supply, in
particular.
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Keywords
Sanitation, Willingness to pay, Household, Logistic Regression, Binary logistic regeression