EXTENT AND DETERMINANTS OF HOUSEHOLDS' WILLINGNESS TO PAY FOR IMPROVED WASTE MANAGEMENT IN ARBA MINCH TOWN, SOUTHERN ETHIOPIA

Abstract

The study was aimed to assess the extent and determinants of households’ willingness to pay for improved waste management in Arba Minch town, southern Ethiopia. The contingent valuation method with double-bounded was used in the study and a sample of 204 households from six kebeles and eighteen ketenas in the town were chosen using simple random sampling technique and 185 were successfully completed. To calculate the mean WTP from the double bounded discrete value elicitation format, the ‘doubleb’ command was used. To model households' willingness to pay for waste management as distinct participation and the amount of money they were willing to spend, the double-hurdle model was employed since it is best suited for zero inflated response. 47.5% of households perceive the current situation of waste management (both solid and liquid waste) in Arba Minch town as "Not good", while only 23.7% perceive it as "Good” and the rest have different perceptions on liquid and solid waste management. 62.7% were willing to pay for improved liquid waste management, while 83.8% were willing to pay for improved solid waste management. The average amount of money willing to spend on improved waste management was about 47.5 ETB per month and 1022 ETB per vacuum truck for solid and liquid, respectively which is lower than the actual. The double hurdle model results showed that variables like rules and regulations, the volume of waste, and health effects had a positive significant impact on participation and willingness to pay for improved waste management. Sex, house ownership and current situations have negative significant effect in solid waste management While, they have a positive effect in liquid waste management. In addition, living arrangement and awareness were a positive significant in solid, while they were not in the study of liquid waste management. This study recommended the municipality should work hard to expand the waste disposal service's reach to all households, offer residential solid waste management services on a regular basis.