Households’ Willingness to Pay for Solid Waste Collection Service in Burayu Town, Ethiopia
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Date
2021-10
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Addis Ababa University
Abstract
Waste is an unavoidable result of a society's consumption and production activities; as a result, appropriate waste management is becoming a critical problem in cities all over the world, particularly in developing countries with severe financial and technical constraints. Using data from a cross-sectional survey of 323 randomly selected houses, this study examined householders' willingness to pay for solid waste collection service in Burayu town. The current study's goal was answered using a cross-sectional study approach. To estimate households' mean willingness to pay, the survey used a direct face-to-face interview method with a double-bounded followed by open-ended value elicitation style. The determinants of household WTP were investigated using the probit and Tobit models. STATA version 14.1, which was used for data administration and analysis, was used. The statistical significance was determined using a p-value of 5%. Solid trash collection service was willing to be paid for by 95.98% of the total respondents. The probit model demonstrated that a household's total monthly income, home ownership, and perception of the current state of solid waste management as poorer have positive and significant effects on the households' WTP reaction for SWC. Households that have lived in the area for a longer period of time, as well as the age of the household head, have negative and significant effects on the household's willingness to pay for SWC services. In the Tobit model, total monthly income has a positive effect on household's maximum willingness to pay, while households that have lived in the region for a longer time and are female have a negative and significant effect on household's maximum willingness to pay. WTP values produced from open ended and double bounded value elicitation formats for a household are around 59.70 ETB and 65.26 ETB each month, respectively. The mean WTP can be used as a guide for the municipality to calculate the economically appropriate fee, according to this study. Through mass media and campaigns, local governments should work hard to raise awareness among citizens about the negative effects of improperly managed solid waste on the environment and human health. In order to build a clean and healthy environment in the town, both the local government and the inhabitants should work together and accept SWC's responsibilities.
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Keywords
Willingness to pay, Solid waste collection, Contingent valuation, Double-bounded, Burayu town