Estimating Households’ Maximum Willingness to Pay for Improved Solid Waste Management Services: In Case of Batu Town Administration: Oromia, Ethiopia
International Journal of Economy, Energy and Environment
Volume 5, Issue 5, October 2020, Pages: 74-82
Received: Jan. 8, 2020;
Accepted: Feb. 26, 2020;
Published: Sep. 25, 2020
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Beyene Ibsa Dadi, School of Business and Economics, Oromia State University, Batu, Ethiopia; Economics Department, Oromia State University, Batu, Ethiopia
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This study is initiated by the current deep rooted problem of improved solid waste management services supply prevailing in Batu town and its primary objective is to estimate maximum willingness to pay of households’ using contingent valuation method. A total of 229 sampled households were interviewed in person. A single bounded closed ended followed by open-ended format were used to elicit willingness to pay for improved solid waste management services. Of 229 respondents 205 (89.52%) accepted bid values of improved solid waste management services provided to them. The data was analyzed both in descriptive and econometric models. The tobit model was used for empirical analyses. Households’ maximum willingness to pay for one sack of improved solid waste management services was 14.01 birr in open ended format. Households characteristics’ such as sex, income, occupation and education are positively determine the probability of accepting the given bid value of improved solid waste management services. The bid value and age of the respondent negatively affect the maximum willingness to pay for improved solid waste management services in tobit model. The study revealed that households are willing to pay more than of the current rate of 5 birr in average per one sack solid waste collection service. Therefore if the improvement scenario comes to effect in one way it solves the shortage of improved solid waste management services problems in the other way the town’s solid waste management office can collect more revenue from service charge.
Willingness to Pay, Contingent Valuation, Solid Waste
To cite this article
Beyene Ibsa Dadi,
Estimating Households’ Maximum Willingness to Pay for Improved Solid Waste Management Services: In Case of Batu Town Administration: Oromia, Ethiopia, International Journal of Economy, Energy and Environment.
Vol. 5, No. 5,
2020, pp. 74-82.
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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