Households’ Willingness to Pay for Improved Solid Waste Management in the Case of Bahir Dar City

Abstract

Cities in developing countries experiencing rapid urbanization and population growth too often
lack the financial resources and institutional capacity to provide the needed municipal
infrastructure for adequate solid waste management. The continuous accumulation of solid waste
has been one of the major causes of environmental problems in Bahir Dar cities. The main
objective of this study is to identify factors affecting willingness to pay decisions and to estimate
their willingness. The study used primary data collected from 342 sample households. The sample
households were selected randomly, and a multistage random sampling technique was employed
to select the sample households. The study shows that 47.37 percent of the sampled households
were willing to pay for improved solid waste management, while 52.63 percent of the respondents
were not willing to pay. The study designed the probit and Tobit models to identify the determinants
of improved solid waste management decisions and amounts at the household level, respectively.
Accordingly, the regression result reveals that income, family size, time spent in the area,
frequency of solid waste collection, and education showed positive significant factors that
determine households’ willingness to pay an amount and their decision. Policy interventions aimed
at enhancing households' willingness to pay and increasing household understanding of the
benefits of improved solid waste management.