An Econometric Model of Factors Influencing Households’ Willingness to Pay for Improved Solid Waste Management Service within the Sekondi – Takoradi Metropolis in the Western Region of Ghana

Abstract

Solid waste disposal, in particular, has become a daunting task for the municipal authorities. This paper presents an assessment of household's willingness to pay for improved solid waste management service. The paper engaged household's that demand the services of Solid Waste Management (SWM) within Sekondi -Takoradi Metropolis. Data for the study were collected through survey of households living at the Effiakuma estates. Three hundred questionnaires were administered to respondents to gather information on their willingness to pay and the amount they were willing to pay for an improved service. In this study, contingent valuation method (CVM) was used as a method of valuation. Probit and Tobit models were used in the empirical analysis to determine the factors that influence WTP and MWTP of households for improved SWM respectively. The outcome of the study shows that, environmental awareness, occupation, income, perception and house ownership significantly determined households willingness to pay for an improved SWM service. The paper recommends that government should create more employment opportunities so that people can earn regular income. In addition government and various stake holders should make efforts towards improving residents' income as willingness to pay relates positively to income.  More so, educational programs about the dangers of waste in our communities should be organized by various organizations in a quest to increase environmental awareness so as to increase the WTP for improved environmental quality in general and improved solid waste management in particular. Last but not least, the policy frameworks which have been set aside by government for service providers or companies must be given a strict enforcement.

Keywords: Solid Waste Management, Willingness to pay, Contingent valuation method, Probit and Tobit model, Marginal effect, Sekondi – Takoradi  and Effiakuma Estate.