Households’ Preferences for Improved Solid Waste Management Options in Aksum Town: An Application of Choice Modeling
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Date
2018
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Addis Ababa University
Abstract
This thesis is aimed at estimating the non-market welfare gain from different improved solid waste management options for households in Aksum town using choice modeling. The proposed improvements in solid waste management were presented by three service attributes (i.e. frequency of waste collection, waste disposal mechanism and mode of transport used to transport waste) along with a monetary attribute (monthly charges of households for the service rendered). For the purpose of the survey 150 dwellers of the town were randomly selected. Two multinomial logit models and a random parameter logit model were used for the estimations. In both the basic and the extended multinomial logit models the coefficients of the attributes are significant and with the priori expected signs. Except for gender of the respondent, family size and monthly income of the households, all included socioeconomic variables in the extended multinomial logit model significantly affect utilities of the respondents. Since the IIA test (standard Hausman test) cannot be completed, random parameter logit model is also estimated. As in the multinomial models, the coefficients of the attributes are significant and have expected signs. Implicit prices were calculated and found 4.7, 1.7 and 2.7 birr for frequency of waste collection, waste disposal mechanism and mode of transportation respectively for the RPL. The equilibrium values or trade offs between the non-monetary attributes were also calculated. Analogous results were found for the three models and frequency of waste collection ranked top in terms of relative importance to households. Finally various hypothetical scenarios were set up and their values estimated using the results of the RPL. Among the included hypothetical alternative programs, Scenario Nine with three times irregular frequency of collection, incinerator as waste disposal mechanism and covered trucks as mode of transport incorporates the maximum levels of the attributes. For a change from status quo to scenario nine, households are willing to pay 37.3 birr per month. Generally dwellers of the town are willing to pay for improvements in the existing solid waste managementactivities.
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Solid Waste Management Options in Aksum Town