Estimating Households’ Maximum Willingness to Pay for Improved Solid Waste Management Services: In Case of Batu Town Administration: Oromia, Ethiopia

Beyene Ibsa Dadi

doi:doi:10.11648/j.ijeee.20200505.12

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Estimating Households’ Maximum Willingness to Pay for Improved Solid Waste Management Services: In Case of Batu Town Administration: Oromia, Ethiopia

Beyene Ibsa Dadi

Published in International Journal of Economy, Energy and Environment (Volume 5, Issue 5)

Received: 8 January 2020 Accepted: 26 February 2020 Published: 25 September 2020

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Abstract

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.

Published in	International Journal of Economy, Energy and Environment (Volume 5, Issue 5)
DOI	10.11648/j.ijeee.20200505.12
Page(s)	74-82
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Willingness to Pay, Contingent Valuation, Solid Waste

References

[1]	Negarit Gazeta (2007). Solid waste management proclamation, Addis Ababa, Ethiopia.
[2]	Haab, T. C. and K. E McConnell (2002). Valuing Environmental and Natural Resources: The Economics of Non- Market Valuation, New Horizon in Environmental Economics, Printed and Bounded in Great Britain by MPG books Ltd, Bondman, and Cornwall.
[3]	UN-GLAAS (2017). Financing universal water, sanitation and hygiene under the SDGs: Global Analysis and Assessment of Sanitation and Drinking-Water, Geneva.
[4]	Kothari, C. R. (2009). Quantitative Techniques, 9th ed., New Delhi: Vikas Publishing House Pvt. Ltd.
[5]	Verbeek M. (2004). A Guide to Modern Econometrics. 2nd. ed. John Wiley and Sons Ltd., England.
[6]	Green. W. H. (2011). Econometric Analysis, New York, Macmillan Publishing Company.
[7]	Muhdin M. (2016). Journal of Environment and Earth Science ISSN 2224-3216 (Paper) ISSN 2225-0948 (Online) Vol. 6, No. 7.
[8]	Birhanu Y. and Berisa G. (2015). Assessment of Solid Waste Management Practices and the Role of Public Participation in Jigjiga Town, Somali Regional State, Ethiopia. International Journal of Environmental Protection and Policy. Vol. 3, No. 5, 2015, pp. 153-168.
[9]	Aklilu A. (2002). Households’ willingness to pay for improved solid waste management: the case of Addis Ababa.
[10]	FAO (2017). Corporate Documents Repository: Application of Contingent Valuation Method in Developing Countries – PDF notes: http://www/fao org /DECREP/003/X8955E03.htm.

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Beyene Ibsa Dadi. (2020). 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, 5(5), 74-82. https://doi.org/10.11648/j.ijeee.20200505.12

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ACS Style

Beyene Ibsa Dadi. Estimating Households’ Maximum Willingness to Pay for Improved Solid Waste Management Services: In Case of Batu Town Administration: Oromia, Ethiopia. Int. J. Econ. Energy Environ. 2020, 5(5), 74-82. doi: 10.11648/j.ijeee.20200505.12

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AMA Style

Beyene Ibsa Dadi. Estimating Households’ Maximum Willingness to Pay for Improved Solid Waste Management Services: In Case of Batu Town Administration: Oromia, Ethiopia. Int J Econ Energy Environ. 2020;5(5):74-82. doi: 10.11648/j.ijeee.20200505.12

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@article{10.11648/j.ijeee.20200505.12,
  author = {Beyene Ibsa Dadi},
  title = {Estimating Households’ Maximum Willingness to Pay for Improved Solid Waste Management Services: In Case of Batu Town Administration: Oromia, Ethiopia},
  journal = {International Journal of Economy, Energy and Environment},
  volume = {5},
  number = {5},
  pages = {74-82},
  doi = {10.11648/j.ijeee.20200505.12},
  url = {https://doi.org/10.11648/j.ijeee.20200505.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20200505.12},
  abstract = {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.},
 year = {2020}
}

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TY  - JOUR
T1  - Estimating Households’ Maximum Willingness to Pay for Improved Solid Waste Management Services: In Case of Batu Town Administration: Oromia, Ethiopia
AU  - Beyene Ibsa Dadi
Y1  - 2020/09/25
PY  - 2020
N1  - https://doi.org/10.11648/j.ijeee.20200505.12
DO  - 10.11648/j.ijeee.20200505.12
T2  - International Journal of Economy, Energy and Environment
JF  - International Journal of Economy, Energy and Environment
JO  - International Journal of Economy, Energy and Environment
SP  - 74
EP  - 82
PB  - Science Publishing Group
SN  - 2575-5021
UR  - https://doi.org/10.11648/j.ijeee.20200505.12
AB  - 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.
VL  - 5
IS  - 5
ER  -

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Author Information

Beyene Ibsa Dadi

School of Business and Economics, Oromia State University, Batu, Ethiopia

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APA Style

Beyene Ibsa Dadi. (2020). 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, 5(5), 74-82. https://doi.org/10.11648/j.ijeee.20200505.12

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ACS Style

Beyene Ibsa Dadi. Estimating Households’ Maximum Willingness to Pay for Improved Solid Waste Management Services: In Case of Batu Town Administration: Oromia, Ethiopia. Int. J. Econ. Energy Environ. 2020, 5(5), 74-82. doi: 10.11648/j.ijeee.20200505.12

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AMA Style

Beyene Ibsa Dadi. Estimating Households’ Maximum Willingness to Pay for Improved Solid Waste Management Services: In Case of Batu Town Administration: Oromia, Ethiopia. Int J Econ Energy Environ. 2020;5(5):74-82. doi: 10.11648/j.ijeee.20200505.12

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@article{10.11648/j.ijeee.20200505.12,
  author = {Beyene Ibsa Dadi},
  title = {Estimating Households’ Maximum Willingness to Pay for Improved Solid Waste Management Services: In Case of Batu Town Administration: Oromia, Ethiopia},
  journal = {International Journal of Economy, Energy and Environment},
  volume = {5},
  number = {5},
  pages = {74-82},
  doi = {10.11648/j.ijeee.20200505.12},
  url = {https://doi.org/10.11648/j.ijeee.20200505.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20200505.12},
  abstract = {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.},
 year = {2020}
}

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TY  - JOUR
T1  - Estimating Households’ Maximum Willingness to Pay for Improved Solid Waste Management Services: In Case of Batu Town Administration: Oromia, Ethiopia
AU  - Beyene Ibsa Dadi
Y1  - 2020/09/25
PY  - 2020
N1  - https://doi.org/10.11648/j.ijeee.20200505.12
DO  - 10.11648/j.ijeee.20200505.12
T2  - International Journal of Economy, Energy and Environment
JF  - International Journal of Economy, Energy and Environment
JO  - International Journal of Economy, Energy and Environment
SP  - 74
EP  - 82
PB  - Science Publishing Group
SN  - 2575-5021
UR  - https://doi.org/10.11648/j.ijeee.20200505.12
AB  - 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.
VL  - 5
IS  - 5
ER  -

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