Solid Waste Management in Ghana: Willingness to Pay for Improved Services

Abstract

Recent rapid urbanization and changing lifestyles have created serious environmental problems in most cities in the developing world, especially in the area of solid waste management and financing. This study analyzes the factors that influence households' willingness-to-pay for improved solid waste management. Using a stratified random sampling technique, a total of 920 households were selected for the study and then a logit model-based contingent valuation method was employed to estimate their willingness-to-pay for improved service. The results indicated that all the variables but the household size had significant influence on respondents' willingness-to-pay. IT also revealed a potentially large market segment of households·in the low-income areas prepared to pay for improved service, which is yet to be tapped into. The study opined that with proper policies, the exploitation of this potential market can help disburden the authorities· total municipal budget.It thus calls for policy interventions through the use of the socio-economic characteristics to draw comprehensive market segments for waste collection instead of the current zoning patterns which failed take cognizance of intra-zonal differentials.Keywords: Cost recovery; Cross subsidization; Internally generated revenue; Service beneficiaries; Service sustainability