Determinants of households’ willingness-to-pay for private solid waste management services in Ibadan, Nigeria

Abstract

The study examined the determinants of willingness-to-pay for private solid waste disposal systems by urban households in Ibadan, Nigeria. A multistage random sampling technique was used to select 552 households for the study. Data obtained from survey were analysed using a logit model-based contingent valuation. Evidence from the logit model indicated that seven variables had significant influence on the households' willingness-to-pay. Of these, income and asset owned were positive and significant at P < 0.01 but amount of willingness-to-pay and firm services were negative and significant at P < 0.01. Education and occupation were positive and significant at the P < 0.05 level while age was negative and significant at P < 0.10. The implication is that households have certain socio-economic characteristics, which influence their willingness-to-pay for solid waste disposal. The study recommends government intervention in a variety of forms such as encouraging public-private participation in solid waste disposal, an aggressive environmental clean-up campaign, decentralization of Waste Management Boards and privatization of some aspects of waste management to ameliorate solid waste problems and improve health.

Willingness to pay for improved residential waste management in a developing country

“…A reason may be that individuals tend to maximize utility at least cost, hence the higher the price of the service the lower will be the demand for it. Similar result has been reported in other study by Rahji and Oloruntoba (2009). They found that households in Ibadan, Nigeria, were less willing to pay higher prices for improved solid waste services.…”

“…Although in some Nigerian cities such as Lagos and Ibadan residents pay for residential waste management service Rahji and Oloruntoba 2009;Yusuf et al 2007), the waste management service has not been very successful. The residents do not often participate in negotiating prices for waste management service thus the service is either overvalued or undervalued.…”

“…It uses survey questions to elicit people's preferences for non-market goods by asking them how much they would be willing to pay for specified improvements or to avoid decrements in them (Mitchell and Carson 1989). Several studies that have been carried out in developing countries have shown that willingness to pay amount, age, income, household size, occupation and educational level influence household willingness to pay for solid waste management (Rahji and Oloruntoba 2009;Chuen-Khee and Othman 2010;Alta and Deshaz 1996;Niringiye and Omortor 2010;Yusuf et al 2007). Rahji and Oloruntoba (2009) applied the contingent valuation method (CVM) to predict determinants of household willingness to pay for solid waste management in Ibadan, Nigeria.…”

“…Several studies that have been carried out in developing countries have shown that willingness to pay amount, age, income, household size, occupation and educational level influence household willingness to pay for solid waste management (Rahji and Oloruntoba 2009;Chuen-Khee and Othman 2010;Alta and Deshaz 1996;Niringiye and Omortor 2010;Yusuf et al 2007). Rahji and Oloruntoba (2009) applied the contingent valuation method (CVM) to predict determinants of household willingness to pay for solid waste management in Ibadan, Nigeria. They found that some factors such as income, asset owned, occupation and the payment amount influence willingness to pay.…”

Economic Valuation of Private Sector Waste Management Services

“…Although, urban residents' valuations regarding private sector participation in municipal solid waste (MSW) management can help policy-makers to package waste management that might be more acceptable and cost efficient, there are only few published studies on contingent valuation regarding waste management in developing countries (e.g. Altaf and Deshazo, 1996;Rahji and Oloruntoba, 2009;Murad et al, 2007). The study reported in this paper will help to fill the knowledge 'gap'.…”