Economic Valuation of Private Sector Waste Management Services

This paper reports a study regarding households’ willingness to pay for private sector solid waste management services. The data originated from a contingent valuation survey conducted in 224 households in Ilorin in southwest Nigeria and was analysed using tobit and censored least absolute deviations models. The use of a robust and consistent estimator to model zero willingness to pay responses was discussed. The results show that the respondents were willing to pay more than one percent of their household income per year. Their willingness to pay amount was influenced by income, education, activities of sanitary inspectors, house type and occupation. The censored least absolute deviations model outperformed the tobit model. We suggest that government agencies should be actively involved in monitoring activities of private firms regarding provision of waste management services. The findings from this study can help policy-makers in designing a more sustainable waste management strategy in southwest Nigeria, as well as in other developing countries.