HOUSHOLD WILLINGNESS TO PAY FOR IMPROVED SOLID WASTE MANAGEMENT SERVICE IN CASE OF AMBO TOWN

Abstract

The provision of solid waste management service has always been the major environmental problem for the town of Ambo. The introduction of service charges in the area of solid waste management is getting much attention due to continuous financial shortage of the town municipality to provide this service at an acceptable level. The pricing of this service is believed to not bring efficiency and sustainability in this area. In line with this, this study was undertaken to examine the extent of solid waste management service problem and households’ willingness to pay for improved solid waste management services. For this 100 sample selected households were used. The probit models are used for the empirical analysis. The study found that among the variables such as household age, weekly solid waste generation, education level, distance from dump area, income, house ownership and family size of households are affect the willingness to pay for improved solid waste management service statistically significantly. The other affects statistically insignificantly. In fact from those variables such as household age, education level, sex, marital status, house ownership and household incomes are positively affect WTP. The remaining is negatively affecting WTP.