Non-market pricing for an improved solid waste management system in Arba Minch Town, Ethiopia

Abstract

Uncontrolled damping of solid waste has long been a major Source of concern for the public in Arba Minch, a tourist hub and one of the rapidly growing towns in Ethiopia. This study was conducted with a primary motive of initiating an improved system of solid waste management (SWM) in the town. For this purpose, the contingent valuation method (CVM) was employed to establish hypothetical grounds for eliciting the willingness-topay (WTP) of the residents for improved solid waste management services. Besides, the paper used maximum likelihood and multivariate estimation techniques to investigate the main factors influencing household's decision to pay for the specified project. From the results of the maximum likelihood estimation, the mean WTP of households for 'madaberiya' of solid waste per month is derived to be 9. 025 Birr. The results of the multivariate regression reveal that residents' WTP for improved solid waste management is significantly related to age of the respondent, education level, income of the household head, amount of solid waste disposal, among other factors. The mean WTP estimated in this survey can serve as a guide for municipal officials in setting a more appropriate fee that can finance the specified improvement in SWM in Arba Minch town. Finally, the results of this study have an implication on the need to carry out research on the feasibility (both technical and economic) of the specified improved solid waste management system in the context of Arba Minch town to make the project come true.

Keywords: Contingent valuation method, willingness-to-pay, solid waste, Arba Minch town