Non-Market Pricing for an Improved Solid Waste Management System in Arba Minch Town, Ethiopia

Abstract

Uncontrolled damping of solid waste has long been a major Source of
concern for the public in Arba Minch, a tourist hub and one of the rapidly
growing towns in Ethiopia. This study was conducted with a primary
motive of initiating an improved system of solid waste management (SWM)
in the town. For this purpose, the contingent valuation method (CVM) was
employed to establish hypothetical grounds for eliciting the willingness-topay
(WTP) of the residents for improved solid waste management services.
Besides, the paper used maximum likelihood and multivariate estimation
techniques to investigate the main factors influencing household's decision
to pay for the specified project. From the results of the maximum
likelihood estimation, the mean WTP of households for 'madaberiya' of
solid waste per month is derived to be 9.025 Birr. The results of the
multivariate regression reveal that residents' WTP for improved solid
waste management is significantly related to age of the respondent,
education level, income of the household head, amount of solid waste
disposal, among other factors. The mean WTP estimated in this survey can
serve as a guide for municipal officials in setting a more appropriate fee
that can finance the specified improvement in SWM" in Arba Minch town.
Finally, the results of this study have an implication on the need to carry
out research on the feasibility (both technical and economic) of the
specified improved solid waste management system in the context of Arba
Minch town to make the project come true.