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Households’ Willingness to Pay for Improved Urban Waste Management in Mekelle City, Ethiopia

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  • Hagos, Dagnew
  • Mekonnen, Alemu
  • Gebreegziabher, Zenebe

Abstract

Cities in developing countries experiencing rapid urbanization and population growth too often lack the financial resources and institutional capacity to provide needed municipal infrastructure for adequate solid waste management, despite citizens’ demand for it. This paper uses a cross-sectional survey of 226 randomly selected households in Mekelle City, Ethiopia, to assess the current municipal sanitation fees and the willingness to pay (WTP) of residents for improved urban waste management, and suggests mechanisms for cost recovery. We used Tobit and probit models in the empirical analysis to determine the factors that influence households’ WTP for improved solid waste management. Results reveal that residents’ WTP for improved solid waste management is significantly related to income and awareness of environmental quality, among other factors. Study results reveal that the current city fee for sanitation is far below the WTP of the residents. The mean WTP we found can be a guide for municipal officials in setting a more appropriate fee that can finance improvements in city SWM, where all households receive collection services, waste is disposed of properly, and recycling and composting features are added.

Suggested Citation

  • Hagos, Dagnew & Mekonnen, Alemu & Gebreegziabher, Zenebe, 2012. "Households’ Willingness to Pay for Improved Urban Waste Management in Mekelle City, Ethiopia," RFF Working Paper Series dp-12-06-efd, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-12-06-efd
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    1. repec:eco:journ2:2017-04-11 is not listed on IDEAS
    2. Ireri, Dave Mwagi, 2017. "Determination Of Willingness To Pay For Irrigation Water Institutions Among Smallholder Farming Households In Mbeere South, Kenya," Research Theses 276429, Collaborative Masters Program in Agricultural and Applied Economics.
    3. Lelia Croitoru & Juan José Miranda & Maria Sarraf, 2019. "The Cost of Coastal Zone Degradation in West Africa," World Bank Publications - Reports 31428, The World Bank Group.
    4. Suryanto, 2017. "Vulnerability and Willingness to Pay for Coping with Flood in Klaten Regency, Central Java, Indonesia," GATR Journals jber135, Global Academy of Training and Research (GATR) Enterprise.
    5. Yalew, Amsalu Woldie, 2012. "Do institutional factors matter for improved solid waste management?," MPRA Paper 42894, University Library of Munich, Germany.
    6. Ndlovu, Nonduduzo, 2016. "Influence of governance institutions on households’ willingness to pay for improved solid waste management in the peri-urban settlements of Matsapha, Swaziland," Research Theses 265682, Collaborative Masters Program in Agricultural and Applied Economics.

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    More about this item

    Keywords

    urban waste management; willingness to pay; cost recovery; developing countries; cities;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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