A major implication of the pattern of urbanization and rapid population growth in developingrncountries, like Ethiopia, is expanding adequate infrastructures, waste management service beingrnone of them. However, it seems that this has not been the case in developing countries in generalrnand in Ethiopia in particular. There is a range of solid waste problems, including inadequate wasterncollection systems, open dumping and other forms of improper final disposal resulting inrnenvironmental pollution. The primary objective of this study is to conduct an economic study onrndemand for municipal solid waste management (SWM) improvements in Yekka-sub city, AddisrnAbaba, so that the adverse effects of the solid waste in terms of economic, health andrnenvironmental impacts may be minimized. In this study an environmental valuation technique -rnChoice modeling (CM) was employed on 242 randomly selected urban households in Yekka-subrncity to estimate the economic values of household's preferences for improved solid wasternmanagement service. This study has obtained estimates of marginal values of improved SWMrnservice attributes and households' WTP for improved MSW management services. Householdsrnon average are willing to pay an additional charge of Birr 12.95 per month for a change inrncollection frequency form once per week to twice per week or from twice per week to thrice,rncleric paribus, and that households' net benefit per unit of waste is higher when there is sortingrnConspired with the situation when there is no sorting since they pay less per unit of total wastern((i. e. both the recyclable and the non-recyclable solid waste) when there is sorting relative to whatrnthey pay for total waste when there is no sorting, ceteris paribus. In conclusion, households arernwilling to pay a positive amount of 1110ncy for solid waste management service, which implies thatrnany policy to bring about efficient solid waste management service in an area needs to include therndemand side information should it yield the needed environmental impacts while yielding thernneeded environmental impacts.