Benefits of Improved Residential Solid Waste Management in Malaysia
By
Jamal Othman, Ph.D#
Abstract
Providers of municipal solid waste collection and disposal services oftenly ask; What is the
preference of households towards solid waste collection and disposal services and how much they
are willing to pay for such services? This study estimated the economic values of household
preferences for improved solid waste management (SWM) service attributes in Malaysia. The
Choice Model (CM) was employed on 859 randomly selected urban households in two
municipalities in Malaysia. The study found that households were willing to pay a premium for
improvements in SWM system. More specifically, the study ascertains that households on
average are willing to pay a charge of RM1.57 (RM1=USD0.264) per month for a change in
collection frequency - from 3 times irregular to either 3 times every alternate day or 4 times per
week, ceteris paribus; RM3.32 if waste disposal method was improved from control tipping to
sanitary landfill, ceteris paribus; and RM2.48 if transportation mode was improved from a mix of
compactor and open trucks to either compactor or a mix of compactor and covered trucks, ceteris
paribus. The CM has also shown that households derive positive utility from the provisions of
recycling facilities and compulsory kerbside recycling with an implicit price (willingness to pay)
of about RM3.51 monthly. The model is very useful (along with information on affordability of
supply) for private service providers, local governments and planning authorities in negotiating
for new concessionaire areas as well as in determining the appropriate tariff either for direct
billings or cross-subsidization rates among households.
KEYWORDS: Residential Solid Waste Management, Choice Modeling, Contingent Valuation,
Kerbside Recycling, Value of Solid Waste Management Program
#
Author is Associate Professor of Environmental Economics with the Resource and Environmental
Economics Program, Faculty of Economics and Business, UNIVERSITI KEBANGSAAN MALAYSIA,
BANGI 43600. He is also the President for the Malaysian Association of Resource and Environmental
Economics (MAREE).
Email: Jortman@pkrisc.cc.ukm.my