Household’s Willingness to Pay for Solid Waste Management Options: The Case of Yekka Sub City, Addis Ababa,Ethiopia
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Date
2007-07
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Addis Ababa University
Abstract
A major implication of the pattern of urbanization and rapid population growth in developing
countries, like Ethiopia, is expanding adequate infrastructures, waste management service being
one of them. However, it seems that this has not been the case in developing countries in general
and in Ethiopia in particular. There is a range of solid waste problems, including inadequate waste
collection systems, open dumping and other forms of improper final disposal resulting in
environmental pollution. The primary objective of this study is to conduct an economic study on
demand for municipal solid waste management (SWM) improvements in Yekka-sub city, Addis
Ababa, so that the adverse effects of the solid waste in terms of economic, health and
environmental impacts may be minimized. In this study an environmental valuation technique –
Choice modeling (CM) was employed on 242 randomly selected urban households in Yekka-sub
city to estimate the economic values of household’s preferences for improved solid waste
management service. This study has obtained estimates of marginal values of improved SWM
service attributes and households’ WTP for improved MSW management services. Households
on average are willing to pay an additional charge of Birr 12.95 per month for a change in
collection frequency form once per week to twice per week or from twice per week to thrice,
ceteris paribus, and that households’ net benefit per unit of waste is higher when there is sorting
compared with the situation when there is no sorting since they pay less per unit of total waste
((i.e. both the recyclable and the non-recyclable solid waste) when there is sorting relative to what
they pay for total waste when there is no sorting, ceteris paribus. In conclusion, households are
willing to pay a positive amount of money for solid waste management service, which implies that
any policy to bring about efficient solid waste management service in an area needs to include the
demand side information should it yield the needed environmental impacts while yielding the
needed environmental impacts.
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Household’s Willingness to Pay for Solid Waste Management Options