Households Willingness To Pay For Improved Solid Waste Management The Case Of Addis Ababa

The supply of solid waste management service has always been the major environmental problemrnfor the city of Addis Ababa. The introduction of service charges in the area of solid wasternmanagement is getting much attention due to continuous financial shortage of the cityrngovernment to provide this service at an acceptable level. The pricing of this service is believedrnto bring efficiency and sustainability in this area.rnIn line with this, this study was undertaken to examine the extent of solid waste managementrnproblem and households’ willingness to pay for improved solid waste management services. Therncontingent valuation method (CVM) is used to analyze households’ willingness to pay. For thisrn430 randomly selected households were used. The probit and tobit models are used for thernempirical analysis.rnThe result shows that 33.98% of households in Addis Ababa are practicing illegal dumping, i.e.,rndisposing solid waste in an open-space, street or in to rivers. Only 54.86% of households arerngetting solid waste collection services. As a result the vast majority of households (91.02%) arernnot satisfied with what the city government is doing in this area.rnMost households (91.02%) are willing to cooperate with the government in financing solid wasternmanagement in order to improve this condition. The mean monthly willingness to pay is Birrrn7.07 per household. It shows variation arcos different income group areas with 2.96 Birr /monthrnfor low, 7.76 Birr /Month for middle and 13.07 Birr /month for high income areas.rnThe tobit model shows income, time spent in the area, quantity of waste generated, responsibilityrnof solid waste management, education, house ownership, number of children and age to bernsignificant variables in explaining maximum willingness to pay. While in the probit modelrnincome, age, number of children, time spent in the area, quantity of waste generated andrneducation have significant effect on willingness to pay.rnThe result of this study suggests there is a good chance of success if solid waste collectionrnservice charges are introduced. And these charges should take into consideration both ability andrnwillingness to pay.rnThis research has also identified the need to do research on the feasibility (both technical andrneconomic) of other final disposal methods in addition to landfilling and the nature and volume ofrnsolid waste in Addis Ababa

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