The Case of Urbanizing Municipalities
LEVI GUILLERMO LIMA GEGANZO
University of the Philippines Visayas
Miag-ao, Iloilo, Philippines 5023
51st Annual Philippine Economic Society Meeting. Intercontinental Manila.
Presentation Outline
PART I: Status of Solid Waste Management in Iloilo
PART II: Factors Affecting The Willingness-To-Pay For An Improved Solid
Waste Collection in Miag-ao Town Proper Among Households in Miagao Town Proper
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Recycle
Solid Waste Management Schemes
Refuse
Reduce
Reuse
Recover
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Developed SWM Strategies Using 5Rs
• bag fees / eco-bag
• plastic ban
• penalties for littering and other fines
• incentive programs
• solid waste collection fee
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Solid Waste Management Criteria
1.
2.
3.
4.
5.
6.
Waste Segregation at Source
Material Recovery Facility
Type of MSW Disposal (Controlled or Open)
Safe Closure Plan
Sanitary Landfill
Presence of Municipal SWM Plans
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Types of Municipal SWM Plans
1.) Anti-Littering Ordinances / Anti-Dumping Ordinances
2.) Adoption of RA 9003 (ESWMA)
3.) Municipal Environmental Codes
4.) Solid Waste Management Ordinances
5.) Clean and Green Programs
6.) Comprehensive Solid Waste Management Plan
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Status of SWM in Iloilo Province
Waste Segregation at Source
18.6
Yes
No
81.4
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Presence of Material Recovery Facilities
13.95348837
Yes
No
86.04651163
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Type of Garbage Disposal
48.8372093
51.1627907
Controlled
Open
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Safe Closure Plan
30.23255814
Yes
69.76744186
No
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Presence of Sanitary Landfill
37.20930233
62.79069767
Controlled
Open
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Rationale of the Study
• The Municipality of Miag-ao is dubbed to be one of the best effective
implementers of integrated solid waste management in the nation
after being a hall-of-famer of the Office of the President as the
Cleanest and Greenest Municipality in the Region VI - Western Visayas
for three consecutive years and winning the national award for
several times.
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Photo Courtesy of 365greatpinoystuff.wordpress.com and digitalphotographer.com.ph
• However, despite its cleanliness, Miag-ao’s increasing economic
activities and expansion leads to problems in solid waste
management of the town proper. Increased amount of garbage in
creeks and waterways, coastal areas and public properties can be
observed.
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Rationale of the Study
increasing volume of solid waste ≠ municipal solid waste management services
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
CONSUMPTION
GENERATION
Households
SOLID WASTE
MANAGEMENT PROCESSES
COLLECTION
Office of General
Services
TRANSPORTATION
Municipal
Dump Trucks
MATERIAL
RECOVERY &
PROPER
WASTE
DISPOSAL
Brgy. Tugara-ao,
Miag-ao, Iloilo
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Municipal Proposed Budget for
Solid Waste Management
PHP 600,000.00
Programs (2011)
Actual Collected Revenue for
Solid Waste Management
PHP 441,920.00
Programs (2010)
Shortage in Budget for
Municipal Solid Waste
PHP 158,080.00
Management Programs
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Rationale of the Study
This study was dedicated for the purpose of improving the municipal
solid waste collection in the Town Proper of Miag-ao, Iloilo,
Philippines. This study will focus on what factors affect the
willingness-to-pay of households for an improved municipal solid
waste collection service.
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Significance of the Study
• For legislative purposes
• For early sustainable development plans of urbanizing municipalities
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Objective of the Study
to identify the factors affecting the willingness-to-pay of the
households in the town proper of the Municipality of Miag-ao, Iloilo
for an improved municipal solid waste collection service
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Limitations of the Study
• Due to time constraints and other considerations, the research only
covered the households in the Town Proper of Miag-ao, Iloilo,
Philippines as the area of the study.
• A total number of 240 households from the eight (8) barangays in the
Miag-ao Town Proper were used as study participants.
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Theoretical Framework
• Municipal solid waste collection service is one of the services
provided by the local government, which aims to eradicate garbage
littered all around the community.
• Solid waste collection helps in the conservation and protection of the
environment since the service is designed to collect solid wastes that
are one of the major reasons contributing to the destruction of the
environment.
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Theoretical Framework
• However, benefits that people can get from an efficient and effective
solid waste management such as environmental quality cannot be
reflected in normal market prices because it has the characteristics
of a non-market priced good.
• In order to monetize the cost of the non-market priced good, nonmarket valuation methods are being used.
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Theoretical Framework
Contingent Valuation Method
and
Willingess-to-Pay
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Derivation of Willingness-To-Pay
Where:
WTP = average willingness-to-pay of households
v = the interval between prices
N = number of values of price
k = lowest possible value
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Estimation of MWTP
Coefficient Estimation
Mean maximum WTP = 1/β1 [ln (1+ e α0 + β2 Q + Σ βi Si)]
Where,
β0 and β1 are absolute coefficient estimates
from the logistic regression
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Estimation of MWTP
Turnbull WTP Estimation
M*
ELB (WTP) = Σ tj (F*j+1 - F*j)
j=0
Where,
F*j = N*j / T*j is the ratio of those who are not willing-to-pay on
an offered bid price, where
N*j = number of not willing-to-pay responses
T*j = number of samples offered a specific bid
tj = bid price, and
* / T* .
f*j = Turnbull estimate of NWHO
j
jSHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Empirical Model
Where,
WTP = F(x1, x2, x3,…,x9)
X1 = sex
X2 = age
X3 = highest educational attainment
X4 = civil status
X5 = household size
X6 = household’s total monthly income
X7 = average daily volume of waste generated
X8 = level of knowledge of household in proper solid waste management
X9 = bid price
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Regression Binary Logistic Model
where,
Y is the response of household on their willingness-to-pay
Z is the sum of the products of the coefficients and the
dependent variables (plus the error term)
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Population and Number of Households by Barangays in Miag-ao Town Proper
Barangay
Baybay Norte
Baybay Sur
Bolho
Mat-y
Sapa
Tacas
Ubos Ilawod
Ubos Ilaya
TOTAL
Household Population Number of Households
2,434
288
1,108
240
519
87
2,190
112
575
362
1,033
183
955
181
909
179
9,723
1,632
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Population and Number of Households by Barangays in Miag-ao Town Proper
Barangay
Baybay Norte
Baybay Sur
Bolho
Mat-y
Sapa
Tacas
Ubos Ilawod
Ubos Ilaya
TOTAL
Household Population Number of Households
2,434
288
1,108
240
519
87
2,190
112
575
362
1,033
183
955
181
909
179
9,723
1,632
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Distribution of Participating Households by their Decision to Pay
for an Improved Municipal Solid Waste Collection Service
Household Type
Willing-To-Pay
Not Willing-To-Pay
No.
(N=240)
%
177
73.75
63
26.25
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Socio-Demographic and Economic Profile
of Households
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
More Willing-To-Pay (Socio-Demographics and
Education)
1. Males
2. Older people
3. Married individuals
4. College and High School Graduates
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
More Willing-To-Pay (Occupation)
1. Government Employees
2. Monthly Income: 3,542 vs 3,622
3. Temporary / Contractual Workers
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
More Willing-To-Pay (Household/Ocuupational
Information)
1. Bigger Household Size
2. Lower Income (14,717 vs 17,561)
3. Owned House vs. Others
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Household Solid Waste Disposal Practices
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
More Willing-To-Pay (Solid Waste Disposal
Practices)
Households with more wastes (all types, except yard wastes) are not
willing-to-pay for improved services, in terms of volume and typecount.
Households not willing-to-pay for improved services are disposing their
wastes more frequently than those willing-to-pay.
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
More Willing-To-Pay (Solid Waste Disposal
Practices)
Households more willing-to-pay for improved SWC are slightly more
willing-to-pay, than those who are not willing-to-pay.
Households more willing-to-pay are more contented in the current
SWC thank those who are not willing-to-pay.
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Perception and Concern of Households on Solid Waste Collection
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Major National Issues and Households’
Perception
1. Crime
2. Corruption
3. Unemployment
4. Poverty
5. Climate Change
6. Env’l Degradation
7. Problems in Health System
8. SWM Problems
9. Calamity and Disaster
10. Overpopulation
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Major Provincial Issues and Households’
Perception
1. Corruption
2. Solid Waste Management Problems
3. Problems in Provincial Health System
4. Unemployment in the Province
5. Insufficient Safe Water
6. Agricultural Problems
7. Crime in the Province
8. Insufficient Electricity Problems
9. Rebel and Leftist Groups
10. Insufficient Transport Services
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Major Municipal Issues and Households’
Perception
1.
2.
3.
4.
5.
6.
7.
8.
9.
Solid Waste Management Problems
Problems in the Health System
Crime in the Municipality
Corruption in the Local Government
Agricultural Problems
Insufficient Electricity Problems
Insufficient Safe Water
Effects of Climate Change
Unemployment in the Municipality
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Major Municipal Environmental Issues and
Households’ Perception
1.
2.
3.
4.
5.
6.
7.
8.
9.
Solid Waste Management Problems
Land Conversion
Agricultural Problems
Water Pollution
Flooding
Air Pollution
Climate Change
Extinction of Natural Resources
Pests
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Level of Concern on Environmental Protection
Households are very concerned in protecting the
environment.
Households perceived that SWM is a major issue in
the municipality.
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Household Perception on Solving SWM Issues
1.
2.
3.
4.
5.
6.
7.
8.
9.
Improvement of solid waste collection
Proper segregation of wastes
Regular home cleanup
Regular barangay cleanup
Improvement of MRFs
Unclogging of Wastes in Drainages and Waterways
Improvement of Recycling
Teaching proper SWM
Limiting of Plastic Usage
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Knowledge Index Rating (KIR)
VARIABLE
Knowledge Index Rating
(mean)
Household Type
Not WillingWilling-to-Pay
to-Pay
(n=177)
(n=63)
8.06
7.86
All
(N=240)
8.00
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Willingness-to-Pay of Households to Pay for An Improved Municipal
Solid Waste Collection Service
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Bid Prices and WTP
Bid Price
(in PhP)
WTP Replies of Households
Yes
No
All
35 (n=60)
43 (71.67)
17 (28.33)
60 (100)
60 (n=60)
34 (56.67)
26 (43.33)
60 (100)
90 (n=60)
28 (46.67)
32 (53.33)
60 (100)
120 (n=60)
10 (16.67)
50 (83.33)
60 (100)
115 (47.92)
125 (52.08)
240 (100)
All (N=240)
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Why Pay?
• Not contented with the current SWC service
• There is a room for improvement for the SWC service
• Important for the health of the household
• Increase cleanliness of the municipality
• Improve overall proper solid waste management
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Why Not?
• Contented with the current service
• Does not need to improve service
• Household would not allot more of their budget for SWC
• It is the local government's responsibility and not of the people
• Doesn't have the responsibility over SWM problems
• Practice other disposal method/s other than collection
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Preferred Payment Vehicle
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Preferred Payment Vehicle
VARIABLE
Duration of Payment
Monthly
Every Collection
Payment Mode
Collection Tickets
Pay-As-You-Throw
Payment Basis
Flat Rate
Dependent on Quantity of Containers
Dependent on Weight of Wastes
To Whom To Pay
Barangay
Collector
Municipality
Households Willing-to-Pay
(n=115)
No.
%
84
31
73.04
26.96
95
20
82.61
17.39
83
20
12
72.17
17.39
10.43
93
15
7
80.87
13.04
6.09
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Mean Willingness-to-Pay Estimates
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Logistic Regression Results
VARIABLES
Constant
Sex
Age
Highest Educational
Attainment
Civil Status
Household Size
Household Income
Volume of Waste
Knowledge Index
Rating
Bid Price
COEFFICIENT
-4.33088
-0.796829
0.0383104
MEAN
COMPUTATION
1
-4.33088
1.445833
-1.15208
54.35417
2.08233
0.207833
0.420833
0.087463
2.27776
0.075715
-5.05E-06
-0.247424
0.929167
4.783333
15463.25
1.439167
2.116419
0.36217
-0.07816
-0.35608
4.15589
0.800417
3.326444
-0.0289253
76.25
-2.20555
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Coefficient Estimation
Mean WTP = 1/-0.0289253 [ln ( 1 + e {-4.33088 – 0.796829 (1.445833) + ..} )]
= PhP 36.32
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Turnbull WTP
tj
35
60
90
120
120+
Nj
Tj
17
26
32
50
-
60
60
60
60
1
Fj*
0.283
0.433
0.533
0.833
1
fj*
0.283
0.15
0.1
0.3
0.167
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Turnbull Mean WTP Estimation
Turnbull WTP = Σ tjf*j+1
= 0 (0.283) + 35 (0.15) +
60 (0.1) + 90 (0.3) + 120 (0.167)
= 0 + 5.25 + 6 + 27 + 20.04
= PhP 58.25
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Social Mean Willingness-to-Pay
Social Mean WTP
= (percentage of the participants who are willing-to-pay) x (total number
households of the barangays in the town proper) x (mean WTP)
= (115/240) x (1,632) x (PhP 58.25)
= 0.497 x 1632 x 58.25
=
PhP 47, 246.808
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Factors Affecting the Willingness-to-Pay Decisions of Households for
An Improved Municipal Solid Waste Collection Service
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
VARIABLE
Constant
Sex (male)
Age
Highest Educational
Attainment
Civil Status (married)
Household Size
Coefficient
-2.76268
-0.954093
0.0268956
0.00282769
Household Income
Average Daily Volume of
Wastes Generated
Knowledge Index Rating (+)
Bid Price (+)
Std Error
2.1829
0.322013
0.0177502
0.136416
Z
-1.2656
-2.9629
1.5152
0.0207
p-value
0.20566
0.00305***
0.12971
0.98346
0.966634
0.32048
0.0867375
0.0861439
-4.73133e- 7.86085e-06
07
-0.258361
0.279432
3.0162
1.0069
-0.0602
0.00256***
0.31399
0.95201
-0.9246
0.35518
4.59232
-0.029944
2.36017
0.00517863
1.9458
0.05168*
-5.7822 7.37e-09***
Number of observations = 240
Number of cases 'correctly predicted' = 168 (70.00%)
Likelihood ratio test: Chi-square(9) = 63.1949 [0.0000]
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Implications
• Less than half of the households in the town proper of Municipality of
Miag-ao, Iloilo would pay for an improved municipal solid waste
collection service even though a need for service improvement is
being manifested
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities
Implications
• Increase knowledge and community participation
• Review of the municipal solid waste services
• Reduce political barriers
• Stakeholders must collaborate on solving the SWM issues
• Law reinforcements
WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?
The Case of Urbanizing Municipalities