Lima-Geganzo, Levi Guillermo. 2013. Who Should Shoulder the Cost on Solid Waste Management? An abstract submitted to The Philippine Economic Society’s 51st Annual Meeting. ABSTRACT Solid waste management has been a perennial problem in the Philippines. The expanding urbanization and increasing industrialization are the main reasons on the increase in solid wastes generated by households. This study focused on the problems related to solid waste management of urbanizing municipalities, particularly the municipality of Miag-ao, Iloilo – the largest municipality in terms of land area in the Philippines. Though tagged as one of the best implementers of solid waste management programs in the country, Miag-ao faces more problems related to solid waste management annually. Given a very minimal budget allotted for solid waste management programs and services, the challenge for the municipality on how to levy the costs of operation has been a difficult task. This study aimed to provide inputs on how to improve the municipal solid waste collection service in Miag-ao by describing the factors on the willingness-to-pay (WTP) for an improved municipal solid waste collection service among households. Data were collected in January to February 2012 from 240 households from all the eight barangays of the town proper. Solid waste management was identified by the majority of households as the main environmental issue in Miag-ao. Improved solid waste collection service was identified by households as the primary solution to solid waste management problems in the municipality. High knowledge on proper solid waste management was recorded among households. Households generate an average of 1.44 kilograms of solid waste materials daily, or approximately a daily solid waste load of 2,350.08 kilograms from all households in the town proper. Among the participating households in the study, 73.75% were willing-to-pay (WTP) for an improved municipal solid waste collection service with varying desired characteristics of an improved service. However, only 29.58% of the total households were certain to pay. Logistic regression showed that the significant factors affecting the WTP for an improved garbage collection include sex, age, average daily amount of household waste generated, concern on solid waste management as main problem of the municipality, knowledge index rating, perception on improvement of solid waste collection service, and bid price. A review of the current municipal solid waste management programs and activities is highly recommended. Despite the high knowledge on proper solid waste management, intensive education is also encouraged to promote further appreciation of proper solid waste management practices. Keywords: solid waste management, willingness-to-pay, environmental degradation Chapter I INTRODUCTION Background Information Like other developing countries, Philippines is also faced with the problem in solid waste management. Increase in the quantity of economic activities in the country’s urbanized and urbanizing areas generate a proportional amount of waste products. In order to solve the prevailing problem, it is suggested to intensify solid waste management efforts. The inefficient waste collection and lack of disposal areas, which are common constraints in solid waste management, are attributed to the lack of enough resources to fund necessary facilities and advanced technologies that will support modern waste management activities (Navarro, 2003). Investing in the modern technologies and equipments for solid waste management by a relatively poor country can result to greater financial problems. Thus, developing countries often fail to deal successfully with solid waste management problems resulting to environmental degradation and imposing health hazards to the public. The inability of the national and local government units to support and implement proper waste management program in the country pulls the country down despite an impressive economic growth in the first decade of the 21 st Century (Atienza, 2011). According to the National Solid Waste Management Commission (2003), an estimated 10M tons of solid waste is being generated in the municipalities in the country every day. Most of solid wastes are from urban areas, where a quarter is generally being contributed by metro cities’ residents and firms. The amount of solid waste generated per individual ranges between 0.30 and 0.71 kg daily. Republic Act 9003, also known as the Ecological Solid Waste Management Act of 2000, was enacted to address comprehensively the problems on solid waste management. The law declared the policy of the State to set guidelines and methods to solid waste reduction and proper solid waste handling (segregation, collection, transport, storage, treatment and disposal). Solid wastes include all discarded household, commercial and industrial wastes. The law established the National Solid Waste Management Commission, under the Office of the President, to oversee the implementation of solid waste management plans and prescribe policies to achieve the objectives of the law. The law also prescribed the local government units to be responsible for the implementation and enforcement of the law within their respective jurisdictions. It is expected that the practice of solid waste segregation and collection will be passed to the barangays and the local governments are the ones responsible for providing their own solid waste management facilities. In Iloilo, efforts to comply with the requirements of RA 9003 are underway as stated in the Provincial Development & Physical Framework Plan for CY 2008-2013 (2008). All municipalities in the province have solid waste collection services, but are limited to the vicinities of their town proper. It appears that the local governments give less importance to barangays outside their town proper areas. This can be attributed to the seemingly low volume of waste generated by household, budget constraints of the municipality, inaccessibility of facilities available and intensified promotion of the local government units of using compost pit as method of solid waste disposal option. It was reported that 33 municipalities of the province have implemented material recovery facilities (MRF) for the recovery of reusable materials at source for further waste reduction. Moreover, about 60 percent of the municipalities in the province have converted existing dumpsites to controlled dumpsites. The municipality of Miag-ao, the nation’s largest municipality in terms of land area (NEDA – RDC 6, 2010), is dubbed as one of the effective implementers of integrated solid waste management in the country. It holds the distinction as the Cleanest and Greenest Municipality in the Region VI (Western Visayas) for three consecutive years from 2004 to 2006 (Espada, 2006). However, despite its cleanliness, Miag-ao’s increasing economic activities and expansion leads to problems in solid waste management at the town proper. Increased amount of garbage coming from households and business establishments are in creeks and waterways, coastal areas, and public properties. One of the problems faced by the municipality of Miagao is household solid waste collection service. The available facilities and services in the local government unit cannot match the increasing volume of solid waste generated and for collection in the town proper (personal interview with Isidro Mosura, October 07, 2011). In 2002, the amount of solid waste collected in Miagao was 5,707.7 cubic meters. These came from the public market and houses around the town proper. The public market and the slaughterhouse and their vicinities are considered as the largest contributor of solid waste materials in the town proper (Miag-ao Accomplishment Report, 2002). The 2009 Municipal Environment Code of Miag-ao outlines the town’s solid waste management program. The Code identified the Municipal Environment and Natural Resources Office (MENRO) - Office of the General Services to be responsible in the daily municipal solid waste collection in the town proper. Furthermore, the Code states that solid waste must be collected by the Office and be brought to a controlled dumpsite in Brgy. Tugara-ao, Miag-ao, Iloilo for material recovery and proper waste disposal. Section 44 of the Code states that municipal solid waste collection fees must be charged from households for the operations and maintenance of the Solid Waste Management System in the municipality. Residential units are charged a monthly garbage collection fee and are issued collection tickets. Households pay a monthly fee of P30 for solid waste collection to their respective barangays during the first week of the month. Half of the amount goes to the barangay and half goes to the municipality. The fee is supposed to finance facility maintenance and waste hauling, In 2001, the proposed budget amounting to P600,000 for the municipal solid waste management programs for the whole municipality was asked by the Office of the General Services (OGS) from the local government of Miag-ao but only PhP 441,920.00 was allotted. To cover the expenses, the remaining amount must be met by the total collected fees from the households in the town proper that avail the municipal solid waste collection service (personal interview with Isidro Mosura, October 07, 2011). The collection efficiency of Miag-ao was recorded to be only about 40%. From the interview, it was gathered that the “very little amount of” waste collected by OGS was interpreted positively - that the households practice recycling, composting, and reusing. It was also cited that household practice composting. From the interview, it was mentioned that the municipality has taken necessary measures to increase efficiency in collecting solid wastes from the households. Problems, however, persists. Most homes are not implementing segregation at source and the collectors have no choice but to take these wastes from the houses even if the municipality imposes a strict “No Segregation, No Pickup” policy. Also, solid wastes pile up in creeks, some in roads and the drainage system of the municipality – which sometimes increase the chances of some parts of the town proper to be flooded. It was mentioned in the interview that an improved service could only be possible if there is an increased allocation of the local government revenue for solid waste management. The “very limited budget” was reported not enough to sustain the collection services as the waste generated in the municipality increases. To contribute to the discussion on how to improve solid waste collection services in the municipality and on how to increase funds to finance it, this research was conducted. The households as recipients of the services are seen as possible source of funds through higher fee. This study focused on describing the willingness-to-pay of the households for an improved household solid waste collection service. Statement of the Problem The study addressed this general problem: What is the decision of the households in the town proper of the Municipality of Miag-ao, Iloilo with regards to paying for an improved municipal solid waste collection service. The study addressed the following specific questions: 1. What is the socio-demographic and economic profile of the households? 2. What are the solid waste disposal practices of the households? 3. What is the level of awareness of the households on proper household solid waste management? 4. What are the desirable characteristics of an improved solid waste collection service according to the households? 5. What is the volume of garbage generated by the households? 6. How much do the households are willing-to-pay for an improved solid waste collection service? 7. What are the significant factors affecting the willingness-to-pay of the households for an improved solid waste collection service? 8. What is the preferred payment vehicle of the households for their payment for an improved solid waste collection service? Objectives of the Study The general objective of the study was to describe 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. The study addressed the following specific objectives: 1. To describe the socio-demographic and economic profile of the households; 2. To describe the solid waste disposal practices of the households; 3. To determine the level of awareness of the households on proper household solid waste management; 4. To determine the volume of garbage generated by the households; 5. To identify the desirable characteristics of an improved solid waste collection service according to the households; 6. To determine how much do the households are willing to pay for an improved solid waste collection service; 7. To identify the significant factors affecting the willingness-to-pay of the households for an improved solid waste collection service; and 8. To identify the preferred payment vehicle of the households for their payment for an improved solid waste collection service. Significance of the Study The information derived from the study are important inputs to the design of an improved household solid waste collection service for the Municipality of Miag-ao. This information include the households’ solid waste disposal practices, the amount they are willing to pay for an improved household solid waste collection service, their level of awareness of proper solid waste management, the volume of solid waste they generate, and their preferred payment vehicle for their contribution. An improved collection of household waste will benefit the households, the municipality, and the environment. Scope and Limitation of the Study Due to time constraints and other considerations, the researchers covered only 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 participated in the study. For the weighing of waste generated, 120 out of 240 households were selected and visited only once for weighing. Fieldwork was conducted in January to February 2012. CHAPTER II REVIEW OF LITERATURE Solid Wastes and Its Impacts With rising economic development and changing lifestyle and food habits, the amount of municipal solid waste also rapidly increase and alter its composition. Over the last decade, production markets increased the sophistication of packaging by using cans, aluminum foils, plastics and other non-biodegradable items causing more harm to the environment and public safety. Problem of waste materials and how it should be dealt with is an issue that affects most developing countries as it targets public health and sanitation. It is also interlinked with air pollution, water pollution and transportation problems (Gottinger, 1991). With the advent of increase in the world population and demand for food and other necessities, waste generated also starts to increase drastically. The amount of waste generated daily by each household starts to rise that the municipal waste collection centers cannot handle the volume of wastes collected anymore. This inefficiencies and mismanagement causes serious impacts on health and problems to the surrounding environment (Praktiri, 2007). To lessen the effects of these externalities brought about by municipal solid wastes in the Philippines, the Ecological Solid Waste Management Act of 2000 (Republic Act 9003) was enacted to promote solid waste management to solve these increasing problems. The law defined solid waste management to be the systematic administration of activities from solid waste generation to final solid waste disposal. Solid waste management consists of waste generation, source segregation, storage, collection, transfer and transport, processing and disposal of solid waste materials. These activities must be in accordance with the best principles of public health, economics, engineering, conservation and other environmental considerations. Solid waste management has been identified as a priority area to be immediately addressed by most developing countries’ (including Philippines) respective sustainable development plans. Comprehensive solid waste management systems are being used to prevent pollution and limit waste generation in these nations. The major highlight of these plans is an integrated municipal solid waste collection service to the main contributors of wastes in the community – the households (Atienza, 2011). Household Waste Disposal Practices The design of municipal solid waste collection service to be provided to the community is based on the waste disposal practices of the households. Waste disposal practices of households determine the capital, equipment and processes to be used in collection of wastes (Post, 2007). In developing countries, common waste disposal practices include open dumping, open burning, dumping in drainages and garbage burying. Waste collection service is also present but it is not available to most households. These disposal practices have negative effects in public safety and health (Babayemi and Dauda, 2009). These disposal practices result to frequent flooding, clogging of streets and drainage systems, water and air pollution and contribute to increase of breeding sites of insects and rodent vectors (Tapan, 2008). In the Philippines, half of the population burns their solid wastes. Other methods households use are municipal solid waste collection system, open dumping, burying, recycling and composting. Even though burning is popular, collection services offered by the local governments is becoming a strong option to households. However, the major hindrance faced by the local governments in supporting municipal solid waste collection services is the lack of financial resources, thus collection services are mostly available to fewer households (Ballados, 2010). Level of Awareness of Solid Waste Management Successful solid waste management is aided through intensive public participation and involvement in decision and implementation processes. Households’ participation and involvement is important in solid waste management because government would be able to provide solid waste management services efficiently and effectively if the government knows the sentiments of its constituents. Intensive public participation and involvement would only be made possible if the households are aware of the underlying concerns on proper solid waste management. The level of awareness of people is generally the major determinant of proper solid waste management practices that in turn could help in solid waste reduction and efficient solid waste collection (Ebreo et al., 1999). Knowledge in waste reduction strategies can motivate an individual to reduce waste generation. In a study conducted by Simmons and Widmar (1990), motivating factors and barriers to recycling were identified in New Jersey, United States. The study found that lack of knowledge regarding solid waste management and lack of personal salience and efficacy were identified to be the barriers interfering motivation of a person’s sense of responsibility towards solid waste management. Without information and perception of individual ability to reduce waste, an individual would not participate in waste reduction programs. A same study conducted by Gerhard (1994) on waste reduction and recycling strategies was done finding a significance relationship in household awareness and proper solid waste management. It was found out that household waste fraction can be reduced by 10% through recycling. This would be possible given that there will be successful public educational programs on solid waste management. This means that the more aware a household will be with waste reduction strategies through trainings and public advertisements, the more efficient the solid waste management will be. In another study conducted by the International Union for the Conservation of Nature (2006), only 78% of the surveyed households in Abbotabad, Pakistan were aware of the issues related to poor waste management. It was discovered that awareness is determined by the economic status of households. The study found out that awareness is higher in nonpoor families compared to poor families due to the lapse in educational attainment that both can receive. Public awareness is highly affected by education households receive. In a study conducted by Aljaradin, et. al (2011) in Jordan, residents were examined on their knowledge and awareness on recycling and their willingness to recycle. It was found out that most participants were not practicing recycling because of their low knowledge on the waste reduction strategy. The low awareness ratings of the households were attributed by the fact that 64.2% of the participants were not able to learn much about proper solid waste management practices in school, university and municipality. In a study in Vientiane, Laos, it was seen that the public awareness about proper solid waste management is increasing, but the pace is slow. The effort of the capital city in increasing clean campaigns and other educational programs paid off as the government had changed public attitudes and create environmental awareness and the proper behavior toward minimizing volume (Khanal and Souksavath, n.d.) Babayemi and Dauda (2009) highlighted the relationship between educational status and awareness on the proper waste disposal practices in Nigeria. Awareness on waste material recovery is high among households with tertiary level of education than those who attained lower education level. This was due to the availability of knowledge about proper solid waste management acquired in their college education. Post (2007) found that the level of awareness of households in proper solid waste management can affect the amount that they are willing to value a solid waste management service. It was found out that household with higher knowledge in proper solid waste management value solid waste management services higher than household with lower knowledge. Contingent Valuation Method and Willingness-to-Pay Because of the inadequate amount of budget available for municipal solid waste management services in developing countries, their governments has to devise a scheme that uses households’ contribution to cover the remaining shortage in funding these services (Atienza, 2011). Solid waste management services are determined through the waste generated, which is the externality created by production and consumption. However, these environmental services have no markets thus no efficient arrangements can be easily made. Deciding on how much households will value the solid waste management service is difficult as it must be centered on identifying the means to ensure that externalities are incorporated in the cost of the service. The most commonly used method in estimating the total economic value of an environmental service like solid waste management is contingent valuation method (Kumar, 2006). A contingent valuation (CV) method is done through presenting a hypothetical description or scenario to a study participant and asking the amount the participant is willing to value a good or service given the specified terms and conditions of the scenario. The latter is done by asking how much an individual is willing-to-pay or willing-to-accept on some changes on the provision. Lastly, response validity is done to relate the willingness-to-pay responses of the participant to his/her socio-demographic and economic characteristics. Confirmation of a priori expectations of the relationship between willingness-to-pay and other variables will be an indicator of significant responses (Ninan, n.d.). Several elicitation formats are available to perform contingent valuation method. Common elicitation formats include open-ended contingent valuation, payment card method and dichotomous choice method. Open-ended CV format is done by asking individuals the maximum amount they are willing-to-pay for a good or service. Payment card method, on the other hand, is done by providing an individual a list of option available to describe his/her maximum willingness-to-pay. Dichotomous choice method could either be single or double-bounded. Single-bounded dichotomous choice is an elicitation format that asks an individual if he/she will be willing-to-accept a certain specific amount for a good or service. On the other hand, doublebounded dichotomous choice format asks the same question as the preceding format, but is combined with the bidding game format. It elicits an additional question that would bid a higher or lower amount for a good or service depending on the first answer (Pearce et al., 2006). These elicitation formats are expected to draw the true willingness-to-pay value of households for specific environmental services. Willingness-to-pay is the maximum amount an individual is willing to give off in exchange on changes in the provision of resources (Anderson, 2004). Willingness-to-Pay Studies Methodologies Used in Some WTP Studies Several studies were conducted using different methodologies to elicit the willingness-topay of households for solid waste management services. Open-ended elicitation format was used in the study of Tanrivermis (1998) in Turkey, willingness-to-pay of individuals was assessed on sharing the burden of environmental damage and to improve environmental quality in Turkey. The same elicitation format was used by Altaf and Deshazo (1996) when they conducted a study to determine the maximum monthly amount households were willing to pay for an improved solid waste management service in Gujranwala, Pakistan. Amiga (2002) also used the same format on her study conducted in Addis Ababa in Ethiopia on the willingness of households to pay for an improved solid waste collection service. Navallasca and Templora (2008) also used open-ended elicitation format in their study on the factors affecting households’ willingness-topay for an improved solid waste collection service in Iloilo City, Philippines. Payment card contingent valuation format was used by Ezebilo and Animasaun (2011) in their study conducted in Ilorin, Southwest Nigeria on how much the private sector value waste management services. The same format was used by Wang, et al (2011) in their study conducted in Yunnan, China. The study was done to assess the households’ willingness-to-pay for an improved solid waste collection and treatment service. Single-bounded dichotomous choice format was used in a study conducted in Osugbu, Osun State, Nigeria by Adepoju and Salimonu (n.d.). The study was done to examine the general features of existing solid waste management, determine the amount households were willing-topay for improved solid waste disposal services and identify the factors influencing their decision. The same elicitation format was used in the study conducted in Mekelle, Ethiopia to estimate the households’ willingness-to-pay for improved solid waste management in the six local administrations in the city (Hagos et al., 2008). Double-bounded dichotomous choice elicitation format was used in a study conducted in Kampala City, Uganda to determine the willingness-topay of households’ for solid waste management (Niringiye and Omortor, 2010). Results of Some WTP Studies A study conducted in Turkey by Tanrivermis (1998) showed that household’s willingness-to-pay is varied depending on their socio-demographic characteristics. About 57.31% of households want to make any financial contributions for the improvement of the living environmental quality varying from 0 to 15,000,000 TL/month. Their mean willingnessto-accept is 30,000,000 TL/month. Factors affecting households’ willingness-to-pay amount were the households’ level of income, level of education gender, residential location and average daily solid waste generation. The study in Kampala City, Uganda showed that the mean willingness-to-pay of households for solid waste management was UGX 2014/month. The household representative’s level of education, marital status, quantity of waste generated, household size, and household expenditure significantly influenced the amounts households are willing-to-pay amount for solid waste management (Niringiye and Omortor, 2010). Results showed in a study conducted in Ilorin, Southwest Nigeria that households were willing-to-pay more than one percent of their total annual household income for an improved solid waste management. The respondents’ mean willingness-to-pay was NGN 4,676/year. The amount they are willing-to-pay was influenced by their income level, education, activities of sanitary inspectors, house type and occupation (Ezebilo and Animasaun, 2011). Altaf and Deshozo’s study in Gujranwala, Pakistan (1996) showed that 71% of households in the city were willing-to-pay for an improved solid waste management service. The study showed that the households’ mean willingness-to-pay for an improved solid waste management service was Rs 9.80 per month. Socio-demographic and economic factors such as average number of household members, average education, discretionary income and wealth were found to affect the households’ willingness-to-pay amount significantly. A study conducted by Aklilu Amiga (2002) in Addis Ababa, Ethiopia showed that almost 91.02 % of the total households in the city were willing-to-pay for an improved solid waste collection service. Households’ mean willingness-to-pay was found out to be 7.09 Birr per month. The result of the study showed that the mean willingness to pay is larger than the expected result and the proposed sanitation fees. Household representative’s education level and occupation were the significant factors identified to affect the amount households were willingto-pay for the improved service. Results of the study of Adepoju and Salimonu (n.d.) showed that 87.5 % of the respondents were willing-to-pay 3% of their income for an improved solid waste collection service after series of contingent valuation surveys conducted. Logit analysis showed that sex, educational level and household daily expenditures were found to be the significant factors that affect their decision in willingness-to-pay. A study conducted by Navallasca and Templora (2008) showed that 64% of the households in subdivisions in Iloilo City were willing-to-pay for an improved solid waste collection service. The mean willingness-to-pay amount of the households was P 117.70 per month. Age, civil status, employment, number of working household members and income were found to be the significant factors that affect the households’ decision for an improved solid waste collection service. CHAPTER III THEORETICAL FRAMEWORK Theory of Market Failure and Externality Environmental problems such as pollution created by human production and consumption happen because of market failure. Market failures in environmental goods and services occur because the markets do not exist or if the markets do exist, the market prices underestimate the goods’ and services’ social values by not including the costs created by the externalities. The main reasons for the non-existence of the markets for these environmental goods and services are the high costs of creation and operation of these markets. In order to solve these externalities, the government works for improving the situation by providing the service (in this case, municipal solid waste collection service). However, due to financial constraints, the government could not fully provide funding for the expensive service. Correcting externalities through payments will cut the incentives to those (households) contributing or making negative externalities (generating wastes/pollution) and may improve outcomes (produce lesser wastes) (Kumar, 2006). The challenge for the environmental goods and services, however, is to overcome the barrier concerning their social cost value because these types of commodities (wastes/pollution) cannot be measured using market valuation methods. In order to monetize the cost of the nonmarketed priced good (municipal solid waste collection service), non-market valuation methods are being used. Contingent valuation method is a popular valuation method used to measure how much people value this kind of environmental service. Contingent Valuation Method and Willingness-to-Pay Contingent Valuation Method (CVM) is the most widely used non-market valuation method for estimating the economic value of non-market goods. It uses survey questions to elicit the people’s preferences for non-marketed goods by asking them how much they will be willing- to-pay for specified improvements or to avoid decrements in them. Willingness-to-pay for nonmarket goods is an economic concept which refers to the amount an individual is willing to give up for a certain service (Anderson, 2009). This study used a single-bounded dichotomous contingent valuation method was used in the study conducted. This method, also known as the referendum method, is done by randomly assigning bid prices for the good or service in question (in this case, it was improved solid waste collection service). The study participants received a randomly drawn price and were asked if they are willing-to-pay for a specific outcome at an offered price. The participants will then be asked about their level of certainty in paying the service at the given bid price. The amounts offered as bid prices were derived from the values obtained in the pilot survey of the study. Derivation of the Willingness-to-Pay This formula was used to derive the estimate of the average willingness-to-pay of households in the study using the single-bound dichotomous valuation method (Agapito and Guadalupe, 2011): 𝑁 𝑊𝑇𝑃 = 𝑣 ∑(𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑎𝑐𝑐𝑒𝑝𝑡𝑎𝑛𝑐𝑒 𝑎𝑡 𝑝𝑟𝑖𝑐𝑒 𝑘𝑣) 𝑘=0 Where: WTP = average willingness-to-pay of households, v = the interval between prices, N = number of values of price, and k = lowest possible value. Estimation of the Willingness-to-Pay The estimation model used to determine the mean maximum willingness-to-pay of the households for an improved municipal solid waste collection service was patterned to that used by Hanemann (1984) as cited by Subade (2005). This is written as: 1 mean WTP = [(𝜃) ln (1 + eα0+βi+ ∑ βi σi )] Where: β1 = coefficient of WTP amount, α1 = coefficient of constant, e = natural algorithm, βi = coefficient of independent variables, and Σi = mean of independent variables. There are several cases, however, that the mean willingness-to-pay using the formula above is either overstated or understated. This happens when the amount of study participants willing-to-pay for an improved service is not consistently decreasing as the bid price increases. Thus, a more conservative Turnbull Willingness-to-Pay estimation model will be used in the study developed by by Haab and Mc Connel (2002) as cited by Subade (2005). This nonparametric estimation model calculates the lower-bound mean willingness-to-pay values and confidence interval for every option. Turnbull willingness-to-pay is computed as: Turnbull Mean Willingness-to-Pay = Σ tj f*j +1 Where: F*j = N*j / T*j and 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 f*j = Turnbull estimate of N*j / T*j. The social wiliness-to-pay of households was computed using the following formula: 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) Payment Vehicle Payment vehicle was asked after obtaining the willingness-to-pay of the households. The payment vehicle will be determined in terms of either voluntary contribution or taxes. According to Boardman, as cited by Agapito and Guadalupe (2011), “payment vehicles include taxes paid into a fund specifically earmarked for a good or service”. In this case, the service used in the study was the improved municipal solid waste collection service. Payment vehicles can aid contingent valuation methods by making it more realistic. In the study, payment vehicles considered include pay-as-you-throw system, ticket collection system, community tax, property tax, business permits and other modes as provided by the household. Frequency of payment was also asked to be either monthly, quarterly, semiannually or annually. Empirical Model The socio-demographic and economic factors used in the study that determined the willingness-to-pay of households for an improved municipal solid waste collection service were the household representative’s sex, age, highest educational attainment, civil status, barangay, household size and total monthly household income. Other factors used included the households’ average daily volume of waste generated, concern for solid waste management as main problem of the municipality, knowledge index rating on proper solid waste management, perception on solid waste collection as solution to existing SWM problems and the assigned bid price. In functional form, the relationship of the willingness-to-pay of households for an improved municipal solid waste collection service is denoted as: WTP = F (x1, x2, x3,…,x12) Where, WTP = willingness-to-pay for an improved municipal solid waste collection service, x1 = sex (male), x2 = age, x3 = highest educational attainment (college), x4 = civil status (married), x5 = barangay, x6 = household size, x7 = household’s total monthly income, x8 = average daily volume of waste generated, x9 = concern on solid waste management as main problem in the municipality, x10 = level of knowledge of household in proper solid waste management, x11 = perception on improved solid waste collection as solution to existing SWM problems, and x12= bid price. Estimation Model To identify the factors influencing the willingness-to-pay for an improved municipal solid waste collection service among households, the household responses to the willingness-topay questions were regressed against the household’s willingness-to-pay potential (independent variables). The regression binary logit model was specified to be: 𝑌= 1 1 + 𝑒𝑥𝑝 𝑧 Where, Y is the response of household on their willingness-to-pay, and z is the sum of the products of the coefficients and the dependent variables (plus the error term). The sum of the products of the coefficients and their dependent variables is presented as: Z = β0+ β1x1 + β2x2 + β3x3 + … β12x12 + e Where β’s are the set of unknown parameters to be estimated, while x’s represent the set of determinants/dependent variables for the willingness-to-pay for an improved municipal solid waste collection service, and e is the error term. Table 1 below shows the definition of the variables that were used in the binary logit analysis. Table 1. Definition of Variables Variable Dependent Variable Willingness-to-pay of households on assigned bid price Independent Variables Sex Age Definition 1 if willing to pay; 0 otherwise Sex of the participant 1 if male; 0 otherwise Age of the household head on the date of interview Highest Educational Attainment 1 if attended college; 0 otherwise Civil Status 1 if married; 0 otherwise Barangay The barangay where household is located Household Size The number of household members including the participant Household Income Total monthly income of the household Average Daily Volume of Solid Waste Generated by Household Concern on Solid Waste Management as Main Problem in the Municipality Level of Knowledge of Household in Proper Solid Waste Management Volume of solid waste generated by the household daily in kilogram 1 if study participant answered yes to the question if SWM is the main problem; 0 otherwise Knowledge index rating of household in proper solid waste management Perception on Improved Solid Waste Collection as Solution to Existing SWM Problems 1 if the study participant said “yes” to question if improved SWC is a solution to existing problems in solid waste management; 0 otherwise Bid Price Amount that the household will be willingto-pay for an improved municipal solid waste collection service CHAPTER IV METHODOLOGY Research Design This study described the socio-demographic and economic characteristics of the households in town proper of Miag-ao, Iloilo, their solid waste disposal practices and the amount of garbage they generate, their level of awareness on proper solid waste management, their willingness to pay for an improved municipal solid waste collection service, and their preferred payment vehicle through the use of descriptive statistics. The willingness-to-pay of households was presented through Turnbull mean WTP estimation model. The social willingness-to-pay was also presented. This study also identified the significant factors that affects the households’ decision in the amount they are willing-to-pay for an improved solid waste collection by using a logistic regression model. Locale of the Study The study was conducted in the eight barangays in the town proper of the mMunicipality of Miag-ao, Iloilo. These barangays are Baybay Norte, Baybay Sur, Bolho, Mat-y, Sapa, Tacas, Ubos Ilawod and Ubos Ilaya. Each barangay have 30 chosen household participants regardless of the population distribution in the barangay. Located North of the island of Negros towards the China Sea, Miag-ao is located East of the municipality of San Joaquin, Iloilo, southwest of the municipality of Igbaras, Iloilo, southeast of the municipality of Sibalom,Antique, and West of the municipality of Guimbal, Iloilo. Figure 1 shows the map of the Miag-ao, Iloilo The inset photo shows the eight study barangays. Miag-ao is a first-class municipality that is partly coastal and partly mountainous. It has a total population of 60,498 based on the 2007 Census of Population (NSO, 2007). Agriculture is the main employer of people in the 42.475 hectares of agricultural land (39.75% of total land use) planted with primary agricultural crops such as rice, eggplants, tomatoes, squash and okra. The town’s commerce and trade is also expanding as total of 241 micro and 339 small scale business establishments are present in the Town Proper as of 2002 (Miag-ao Accomplishment Report, 2002). Source: Google Maps. © 2011 Figure 1. Map of Miag-ao, Iloilo Town Proper Data Requirements Primary and secondary were used in the study. Primary data were taken from personal interviews with the 240 household representatives using an interview schedule. Data collected include the socio-demographic and economic characteristics of the household representatives, their level of awareness on proper solid waste collection, their solid waste disposal practices, their willingness-to-pay for an improved solid waste collection and their preferred payment vehicle. The amount of garbage that the households generated was measured by weighing once the solid wastes generated by 120 randomly selected household participants. Secondary data were obtained through interviews with the current officer-in-charge of the Municipal Environment and Natural Resources Office of the town, Mr. Isidro Mosura, as well as the General Services Office Head, Ms. Arlene Nufuar. Questions on solid waste management activities of the municipality were given answers, specifically on the existing municipal solid waste collection service. Also, the researchers used published and unpublished works, as well as electronic sources as secondary data to further present the background of the study conducted. Study Participants The participants of the study were 240 household representatives from the eight barangays of Miag-ao in the town proper. The participants were individuals 18 years old or older, can read and write and knowledgeable of their household solid waste practices. Table 2 shows the population and number of households in the town proper of Miag-ao, Iloilo from where the study participants were drawn. Table 2. Population and Number of Households by Barangay in Miag-ao town proper BARANGAY Household Population Baybay Norte Baybay Sur Bolho Mat-y Sapa Tacas Ubos Ilawod Ubos Ilaya TOTAL 2,434 1,108 519 2,190 575 1,033 955 909 9,723 Number of Households 288 240 87 112 362 183 181 179 1,632 Source: Miag-ao Environment and Natural Resources Office (2011) Sampling A total of 240 households were selected following the bid price sampling as shown in Table 3. Thirty households were interviewed in every barangay and 60 households were interviewed in every bid price. A randomly picked point of reference household was designated in every barangay to be the first to be interviewed. The next household to be interviewed was determined by k = household population in the barangay/ number of sample household in the barangay. Table 3. Bid Price Sampling BARANGAY Bid Price 1 (PhP 35.00) 1 9 2 9 3 7 4 7 5 7 6 7 7 7 8 7 Total 60 Households Bid Price 2 (PhP 60.00) 7 7 9 9 7 7 7 7 Bid Price 3 (PhP 90.00) 7 7 7 7 9 9 7 7 Bid Price 4 (PhP 120.00) 7 7 7 7 7 7 9 9 Total Households 30 30 30 30 30 30 30 30 60 60 60 240 A total of 120 households were identified for the weighing of household solid waste being generated by households daily. The household on which household waste were weighed were randomly selected from the 240 households interviewed. Due to time constraints and other considerations, the household solid wastes were only weighed once. All weighing of the 120 households’ solid wastes were done on the last week of January to February 2012. Methods of Collecting Data A permit was secured from the Office of the Mayor of Miag-ao, Iloilo to allow the researcher to conduct the study and gather necessary data essential to the study. Various data regarding the solid waste management activities of Miag-ao, Iloilo were collected through its Municipal Environment and Natural Resources Office and General Services Office. To test the accuracy of the interview schedule, a pilot testing of interview schedule was done. This pilot survey was conducted in the town proper of Guimbal, Iloilo with 60 households as participants last October 2011. Proper revisions on the interview schedule were made after the pilot survey was conducted. The final survey was conducted in the months of December 2011 until February 2012. Proper permits were secured weeks before the interview and households were advised that an interview will be conducted on a specific date. The researcher asked for help from the respective barangay heads of the study area for the determination of the households to be interviewed. Solid wastes from 120 households were weighed after the final survey in January to February 2012 to determine the daily amount of solid waste materials being generated by households in the town proper of Municipality of Miag-ao. Data Collection Instruments An interview schedule was used throughout the data collection process consisting of relevant interview items to answer the eight specific objectives of the study (Appendix B). An introduction of the study, as well as the cover letter with the mayor’s approval was included in the interview schedule for the benefit of the participants. An attached informed consent form was also included for the proper solicitation of voluntary participation of the household head in the study. The interview schedule were divided into six parts, which included the: (1) sociodemographic and economic characteristics of the household, (2) the solid waste disposal practices of the household and average daily amount of solid wastes generated by households, (3) the level of awareness of household on proper solid waste management, (4) household’s desired characteristics of an improved municipal solid waste collection service, (5) the willingness-to-pay of an household for an improved municipal solid waste collection service and (6) their preferred payment vehicle. The first part of the interview schedule asked several questions pertaining to the sociodemographic and economic characteristics of the household representative, which included his/her age, sex, civil status, highest educational attainment, job tenure. The same part also looked into the household members’ profile, which included the household size, the number of working household members, total monthly household income, and the housing profile. The second part of the interview schedule asked for the solid waste disposal practices of the household. Sections on household solid waste generation, solid waste materials present, disposal practices per solid waste material, and frequency of waste disposal were included. A section on weighing of the household wastes (for 120 out of 240 households) and solid waste collection service were also included on this part of the interview schedule. The third part assessed the awareness of the household in proper solid waste management, particularly in municipal solid waste collection. In this part of the interview schedule, participants were asked simultaneous questions pertaining to their concerns about public problems and issues, both in national and local level; level of concern towards environmental protection; concerns about environmental problems; level of concern towards solid waste management; knowledge on proper solid waste management; household perception on an improved solid waste collection service as solution to existing problems in solid waste management in the municipality. This part included several tables and questions, where the participant must rank and choose values according to his/her knowledge, perception, view or opinion. The fourth part of the schedule was a continuation of the last section of the previous part, which asked for the household’s view on improved solid waste collection as an answer for the ongoing problems in the municipal solid waste management. This section asked the household participants the characteristics of municipal solid waste collection service that they want to improve given its existing state. The fifth part looked into the willingness-to-pay of the households for an improved municipal solid waste collection service that they have specified in the previous part of the schedule. This part primarily determined the number of households that were willing-to-pay for an improved service given the bid price assigned. The study participants had to answer either “yes” or “no” to a randomly assigned bid price and their level of certainty were also asked. The households also had to give their reasons on why they are or not willing-to-pay for an improved collection service. The last part of the interview schedule looked into the payment vehicle that households prefer for their contribution for an improved municipal solid waste collection. This part includes questions on the frequency, basis, mode and collector of payment of households willing-to-pay for an improved municipal solid waste collection service. A pilot testing of the interview schedule was conducted last October 2011 in sixty (60) households in the town proper of Guimbal, Iloilo. The municipality also has existing municipal solid waste collection service in its town proper that constitutes almost the same settings as the study locale. The bid prices used in the final interview schedule were also determined through the values identified in the pilot testing. Data Analysis The study used descriptive statistics in analyzing the data gathered. This included mean, frequency and percentage. Mean willingness-to-pay and social mean willingness-to-pay were computed through Turnbull willingness-to-pay estimation model. Binary logistic regression analysis was used to identify the significant factors influencing households’ decision of either paying or not for an improved solid waste collection in the town proper of the municipality of Miag-ao, Iloilo. CHAPTER V RESULTS AND DISCUSSION This chapter presents and discusses the results of the personal interviews with 240 household representatives in the eight (8) barangays of the town proper of Municipality of Miagao, Iloilo that participated in the study. The presentation of the results is divided into six (6) parts: socio-demographic and economic profile of the households, household solid waste disposal practices, level of awareness of households in proper solid waste management, households’ desired characteristics of an improved municipal solid waste collection service, decisions of households on willingness-to-pay for an improved municipal solid waste collection service and the factors affecting their decision, and their preferred payment vehicle. Throughout the presentation and discussion of the results, the households were classified into two types based on their willingness-to-pay decision for an improved municipal solid waste collection service: those who are willing-to-pay and those who are not willing-to-pay (Table 4). Out of the 240 participants interviewed, 177 were willing to pay (73.50%) and 63 were not willing-to-pay (26.25%) for an improved service. Table 4. 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 63 % 73.75 26.25 Socio-Demographic and Economic Profile of Households Individual Level Information Table 5 below shows the profile of the household participants based on selected sociodemographic characteristics. The majority of the participants in the interview conducted were male (55.42%). More male participants than female participants can be noted in households that were willing-to-pay for an improved municipal solid waste collection service. On the average, the participants were in their early to mid-fifties. A larger number of younger individuals were recorded to be less likely willing-to-pay for an improved service than in households that are willing-to-pay for an improved service. Most of the study participants were married, consisting of about three quarters of the total study sample (72.50%). Results also show that most of the study participants were either high school graduates (40.83%) or college graduates (39.58%). Study participants that reached higher education (high school, college and graduate studies) were observed to be more willing-to-pay for an improved municipal solid waste collection service. Table 5. Distribution of Participants by their Decision to Pay for an Improved Collection Service and Individual Personal Profile Household Type All Not Willing-toWilling-to-Pay (N=240) Pay (n=177) (n=63) No. % No. % No. % Sex Male 100 56.50 33 52.38 133 55.42 Female 77 43.50 30 47.62 107 44.58 Age 54.95 52.68 54.35 Mean Age (in years) Civil Status Single 5 2.82 10 15.87 15 6.25 Married 127 71.75 47 74.60 174 72.50 Widowed/-er 44 24.86 5 7.94 49 20.42 Separated 1 0.56 1 1.59 2 0.83 Highest Educational Attainment Elementary 33 18.64 8 12.70 41 17.08 High School 69 38.98 29 46.03 98 40.83 Vocational 3 1.69 1 1.59 4 1.67 College 71 40.11 24 38.10 95 39.58 Master's 1 0.56 1 1.59 2 0.83 The participants were also classified based on their occupation, income and tenure as shown in Table 6. Government employees, barangay employees and businesspersons were found to be more willing-to-pay for an improved service than private workers and self-employed individuals. Low-income individuals were those who were more willing to pay for an improved service than high-income individuals. When classified by their tenure in their respective occupations, permanent workers and businesspersons were more willing-to-pay for an improve service than temporary or contractual employees. Table 6. Distribution of Participants by their Decision to Pay for an Improved Collection Service and Means of Income Household Type VARIABLE Willing-to-Pay (n=177) No. Occupation Unemployed Government Employee Self-Employed Private Employee Businessperson Barangay Employee Monthly Income Mean Monthly Income Occupation Tenure Unemployed Temporary/Contractual Permanent Businessman/SelfEmployed % Not Willing-toPay (n=63) No. % All (N=240) No. % 58 32.77 15 23.81 73 30.42 47 31 15 18 8 26.55 17.51 8.47 10.17 4.52 15 23 9 1 - 23.81 36.51 14.29 1.59 - 62 54 24 19 8 25.83 22.50 10.00 7.92 3.33 3,542 3,622 3,563 57 80 26 32.20 45.20 14.69 16 38 8 25.40 60.32 12.70 73 118 34 30.42 49.17 14.17 14 7.91 1 1.59 15 6.25 Household Level Information Table 7 shows profile of the study households. The households on the average, had four members. Bigger household size was noted among households that were willing-to-pay, for an improved municipal solid waste collection (5 versus 4 members). The number of working household members, however, was the same for both types of households (2 members per household). Households with higher total household income were less likely to pay for an improved service than households with lower total household income. Nine out of ten (92%) study participants owned the house they lived in. All study participants that rent houses and those who were informally settling were willing-to-pay for an improved service. Meanwhile, 88.70% of all study participants owning their respective houses were also willing-to-pay for an improved municipal solid waste collection service. Table 7. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and Household Level Information Household Type Willing-to-Pay (n=177) VARIABLE All (N=240) Not Willing-to-Pay (n=63) No. % No. % No. % Household Size (mean) 5 - 4 - 4 - Mean Number of Working Household Members (mean) 2 - 2 - 2 - 14,717 - 17,561 - 15,463 - Mean Total Monthly Household Income (in PhP) Housing Ownership Owned Rented Informal Settling 157 11 9 88.70 6.21 5.08 63 - 100 - 220 11 9 91.67 4.58 3.75 Household Solid Waste Disposal Practices Kind and Volume of Solid Waste Generated Table 8 shows the distribution of the households based on the kind of solid waste materials generated in the past twenty-four (24) hours to the time the interview was conducted. Food wastes topped the list of solid waste materials present in all study participants’ households (99.58%). The list is followed by yard wastes, plastics, paper products, cans and glass materials. Households that were willing-to-pay for an improved solid waste collection service had more yard wastes generated than those who were not willing-to-pay (85.88% versus 74.60%). Higher percentage of households not willing-to-pay for an improved service generated more food wastes, plastic, paper, cans and glass materials than households willing-to-pay for an improved service. Table 8. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and the Kind of Solid Waste Materials They Generate Household Type MATERIAL Willing-to-Pay (n=177) No. Food Wastes Yard Wastes Plastic Paper Can Glass % Not Willing-to-Pay (n=63) No. % 176 99.44 63 152 128 113 39 28 85.88 72.32 83.34 22.03 15.82 47 61 55 23 13 100 74.60 96.83 87.30 36.51 20.63 All (N=240) No. 239 199 189 168 62 41 % 99.58 82.92 78.75 70.00 25.83 17.08 Average daily amount of waste generated by households were also measured, as shown in Table 9. The average daily amount of solid wastes generated by households was 1.44 kilograms. The average daily solid waste load of the municipality was 2,350.08 kilograms. The study found out that not willing-to-pay households produced larger amount of wastes as compared to households, which were willing-to-pay for an improved municipal solid waste collection service (1.51 versus 1.41 kilograms). Table 9. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and their Daily Average Volume of Solid Waste Being Generated Household Type VOLUME OF SOLID WASTE GENERATED Average Daily Volume of Solid Waste Generated by Households (in kg) Willing-to-Pay (n=85) Not Willing-toPay (n=35) Weighed (n=120) 1.41 1.51 1.44 Households’ average volume of solid waste generated per barangay was also computed as shown in Table 10. Baybay Norte’s households have the highest average volume of solid waste generated among all eight barangays in the town proper (with 1.53 kilograms). The high solid waste volume is due to the fact that the municipal market is located in the barangay. Bolho, Ubos Ilaya, Baybay Sur and Sapa follow, and are barangays located near the vicinity of the municipality’s center and are barangays located in coastal and riverine areas. Table 10. Daily Average Volume of Solid Waste Generated by Households per Barangay VOLUME OF SOLID WASTE GENERATED BARANGAY (in kg) Baybay Norte 1.53 Bolho 1.48 Ubos Ilaya 1.46 Baybay Sur 1.45 Sapa 1.42 Ubos Ilawod 1.39 Mat-y 1.39 Tacas 1.38 Solid Waste Containers Table 11 shows the distribution of participating households by their use of container for every kind of solid waste material they generated. Plastic containers and sacks were the preferred solid waste containers by households. Closed containers, open containers and baskets are among the other least preferred container types. Households preferred to throw their yard wastes, papers and cans in sacks. Their food and plastic wastes were preferred to be placed in closed containers, and glass wastes were commonly thrown in plastic containers. Open containers, boxes, plastics and closed containers were more likely the substitutes of households as solid waste containers. Willing-to-pay households preferred to throw most of their solid waste generated in sacks. On the other hand, not willing-topay households preferred to throw their waste materials in sacks, closed containers and plastic containers. Table 11. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and the Container They Use for Different Kinds of Solid Waste Materials Generated Household Type WASTE MATERIAL AND CONTAINER Willing-to-Pay (n=177) No. Food Wastes Closed Container Open Container Plastic Sack Yard Wastes Sack Open Container Basket Plastic Plastic Closed Container Box Basket Sack Plastic Paper Sack Box Plastic Open Container Closed Container Basket % All (N=240) Not Willing-to-Pay (n=63) No. % No. % 73 86 17 - 41.48 48.86 9.66 - 32 20 10 1 50.79 31.75 15.87 0.02 105 106 27 1 43.93 44.35 11.30 0.42 60 40 33 19 39.47 26.32 21.71 12.50 28 6 9 4 59.57 12.77 19.15 8.51 88 46 42 23 44.22 23.12 21.11 11.56 67 25 12 20 4 52.34 19.53 9.38 15.63 3.13 26 13 19 3 - 42.62 21.31 31.15 4.92 - 93 38 31 23 4 49.21 20.11 16.40 12.17 2.12 58 20 14 6 7 8 51.33 17.70 12.39 5.31 6.19 7.08 13 7 12 10 8 5 20.63 11.11 19.05 15.87 12.70 7.94 71 27 26 16 15 13 42.26 16.07 15.48 9.52 8.93 7.74 Can Sack Plastic Glass Plastic Closed Container 32 7 82.05 17.95 22 1 95.65 4.35 54 8 87.10 12.90 18 10 64.29 35.71 11 2 84.62 15.38 29 12 70.73 29.27 Methods of Solid Waste Disposal Households’ solid waste disposal methods were also examined as shown in Table 12. Food wastes were disposed by households by either giving to their neighbors or feeding to their pet animals (81.59%). Yard wastes, plastics and paper wastes were disposed by households through the existing collection service. Meanwhile, cans were being reused by households (46.77%) and glass were mostly being buried by households (70.73%). Table 12. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and Method of Solid Waste Disposal Household Type WASTE MATERIAL AND DISPOSAL METHOD Willing-to-Pay (n=177) No. Food Wastes Given/Fed Collected Yard Wastes Collected Buried Plastic Collected Buried Incinerated Reused Paper Collected Incinerated Reused Can Reused % All (N=240) Not Willing-to-Pay (n=63) No. % No. % 146 30 82.95 17.05 49 14 77.78 22.22 195 44 81.59 18.41 116 36 76.32 23.68 37 10 78.72 21.28 153 46 76.88 32.12 79 24 19 6 61.72 18.75 14.84 4.69 50 0 2 9 81.97 0 3.28 14.57 129 24 21 15 68.25 12.70 11.11 7.94 61 51 1 53.98 45.13 0.88 48.72 35.90 6 49 0 10.91 89.09 0 67 100 1 39.88 59.52 0.60 10 43.48 29 46.77 19 Collected Sell Glass Buried Collected 14 6 15.38 12 1 52.17 4.35 26 7 41.94 11.29 24 4 85.71 14.29 11 2 84.62 15.38 29 12 70.73 29.27 Frequency of Solid Waste Disposal The frequencies of solid waste disposal of the participating households were also observed. Table 13 shows the distribution of the different solid waste disposal frequencies of households for every solid waste material. Table 13. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and Frequency of Solid Waste Disposal Household Type All WASTE MATERIAL AND Willing-to-Pay Not Willing-to-Pay (N=240) FREQUENCY OF (n=177) (n=63) DISPOSAL No. % No. % No. % Food Wastes Daily Twice A Week Others Yard Wastes Daily Others Plastic Daily Weekly Twice A Week Paper Daily Weekly Twice A Week Can Daily Weekly Twice A Week Glass Daily 144 1 31 81.82 0.57 17.61 6 3 95.24 4.76 204 1 34 85.36 0.42 14.23 90 62 59.21 40.79 35 12 74.47 25.53 125 74 62.81 37.19 79 35 14 61.72 27.34 10.94 48 10 3 78.69 16.39 4.92 127 45 17 67.20 28.31 8.99 60 34 19 53.10 30.09 16.81 23 11 21 41.82 20 38.18 83 45 40 49.40 26.79 23.81 26 12 1 66.67 30.77 2.56 11 11 1 47.83 47.83 4.35 37 23 2 59.68 37.10 3.23 28 100 13 100 41 100 Almost all solid waste materials were being disposed by households on a daily basis. Some waste materials were preferred by households to be disposed either weekly or twice a week. Municipal Solid Waste Collection Service Table 14 shows the distribution of participating households and their availment of the existing municipal solid waste collection service. Two-thirds (66.67%) of the total households participating in the study currently availed the collection service. Table 14. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and Their Availment of Existing Municipal Solid Waste Collection Service Household Type AVAILMENT OF SOLID WASTE COLLECTION SERVICE Willing-to-Pay (n=177) No. Household Availing Solid Waste Collection Service Household Not Availing Solid Waste Collection Service % Not Willing-toPay (n=63) No. % All (N=240) No. % 122 66.93 38 60.32 160 66.67 55 31.07 25 39.68 80 33.33 Table 15 shows the distribution of the collection service-availing households based on the characteristics of the existing municipal solid waste collection service. All households that availed the existing collection service segregated their solid wastes. Sack is mostly being used by these households to be the overall container of solid waste material. Other containers based on the preference of the households were baskets, plastics and closed containers. Table 15. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and the Characteristics of Existing Solid Waste Collection Service Household Type CHARACTERISTICS No. Waste Segregation Segregating Solid Waste Not Segregating Solid Waste Overall Container of Solid Waste Material Sack Basket Plastic Closed Container Container Returned Returned Not returned Pickup Area Household Main Routes/ Highway Barangay-Designated Area Years of Utilization of Service (mean) Service Payment Paying Not Paying To Whom Paying Service Fee Barangay Municipality All (N=160) Not Willing-toPay (n=38) No. % Willing-to-Pay (n=122) % No. % 122 - 100 - 38 - 100 - 160 - 100 - 63 31 27 1 51.64 25.41 22.13 0.82 28 8 2 - 73.68 21.05 5.26 - 91 39 29 1 56.88 24.38 18.13 0.63 109 13 89.34 10.66 37 1 97.37 2.63 146 14 91.25 8.75 99 20 3 81.15 16.39 2.46 22 14 2 57.89 36.84 5.26 121 34 5 75.63 21.25 3.13 7 - 6 - 7 - 92 30 75.41 24.59 19 19 50 50 111 49 69.38 30.63 71 21 77.17 22.83 18 1 94.74 5.26 89 22 80.18 19.82 Overall solid waste containers of households for the existing solid waste collection were mostly returned (91.25% versus 8.75%). The majority of the households availing the current service have their solid wastes collected directly from their homes (75.63%). Other households have to bring their solid wastes to the main routes/highways to have their wastes collected and a small amount have their wastes placed in a designated area in the barangay for pickup (21.25% and 3.13%). The average amount of years of households availing the existing service was 7 years. Households willing-to-pay for an improved service availed the solid waste collection service longer than those who were not willing-to-pay for an improved service (7 years versus 6 years). The existing collection service fee was P30.00 and collection tickets were being used by households during solid waste collection. Seven out of 10 (69.38%) households were paying for the current collection service. Three quarters (75.41%) of the total households willing-to-pay for an improved service were paying for the existing collection service. Meanwhile, half of the households not willing-to-pay for an improved service were paying for the existing service (50%). Eight out of ten (80.18%) of the total households were paying their collection service fee to their respective barangays. The rest were paying directly to the municipality (19.82%). Table 16 shows the distribution of existing collection service-availing households based on their contentment on the current solid waste collection service. An average of 80.63% of the total households was contented with the existing municipal solid waste collection service. Higher percentage of not contented households can be noted from households not willing-to-pay for an improved collection service than those who were willing-to-pay for an improved service (23.68 versus 18.03). Table 16. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and their Contentment on the Existing Solid Waste Collection Service Household Type CHARACTERISTICS Willing-to-Pay (n=122) No. Contented with Service Not Contented with Service 100 22 % 81.97 18.03 Not Willing-toPay (n=38) No. % 29 9 76.32 23.68 All (N=160) No. 129 31 % 80.63 19.38 Table 17 presents the distribution of the non-contented collection service-availing households and the reasons for their non-contentment on the existing collection service. Wrong processes during collection service were identified by households to be the top reason of their discontentment. Collection route problems and behavior of collectors during collection were the next identified reason of households’ discontentment (both 70.97%). Other reasons identified were unreturned and deteriorated container after collection, (51.61%) expensive existing fees (41.94%), and other problems such as status of dump tracks used in collection, lack of signaling devices before time of collection, and outdated equipments. Table 17. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and the Reasons for their Non-Contentment on Existing Municipal Solid Waste Collection Service* Household Type All REASONS FOR NONNot Willing-toWilling-to-Pay (N=31) CONTENTMENT ON EXISTING Pay (n=22) SERVICE (n=9) No. % No. % No. % Wrong Process 17 77.27 8 88.89 24 77.42 Route Problems 15 68.18 7 77.78 22 70.97 Behavior Problems of Collectors 16 72.73 6 66.67 22 70.97 Unreturned and deteriorated container after collection 15 68.18 1 11.11 16 51.61 Expensive fee 13 59.09 13 41.94 Other problems 13 59.09 5 55.56 18 58.06 *multiple responses Table 18 shows the distribution of the 160 collection service-availing households and the solid waste problems they were experiencing with the existing municipal solid waste collection service. Diseases topped the list (43.13%) of the common problems experienced by households with the current service followed by clogging of drainages and waterways (32.50%), no improvement in surrounding’s cleanliness despite presence of existing collection service (26.88%) and further waste problems resulting from collection (18.75%). Table 18. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and the Problems They Experience with the Existing Municipal Solid Waste Collection Service* Household Type All PROBLEMS ARISING FROM Not Willing-toWilling-to-Pay (N=160) EXISTING SOLID WASTE Pay (n=122) COLLECTION SERVICE (n=38) No. % No. % No. % Diseases 54 44.26 15 39.47 69 43.13 Clogging of Drainages and Waterways 40 32.79 12 31.58 52 32.50 Still Unclean Surroundings 43 35.25 43 26.88 Further Waste Problems 24 19.67 6 15.79 30 18.75 Others 24 19.67 28 73.68 52 32.50 *multiple responses Perception and Concern of Households on Solid Waste Collection Table 19 shows the major national issues as identified by the study participants. Results showed that the study participants were more concerned with non-environmental issues than environmental ones. These issues include crime (43.33%), corruption (42.92%), unemployment (41.17%), and poverty (33.42%). Climate change (27.92) and environmental degradation (25.83), both of which are environmental issues, were the major environmental issues identified by households in the national level. Other issues, both environmental and non-environmental types, identified by households were problems in the national health system, waste management problems, calamity and disaster and overpopulation. This shows that the study participants were more concerned with their security and economic issues than any other problems related to the environment. However, a greater proportion of the study participants willing-to-pay for an improved municipal solid waste collection service identified environmental issues as a major issue. Table 19. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and Identified Major National Issues* Household Type All Not Willing-toWilling-to-Pay (N=240) VARIABLE Pay (n=177) (n=63) No. % No. % No. % Crime in the Philippines Corruption Unemployment Poverty Climate Change Environmental Degradation Problems in Health System Waste Management Problems Calamity and Disaster Overpopulation Other problems *multiple responses 75 86 68 56 51 51 46 27 36 30 2 42.15 48.70 38.53 31.53 28.81 28.93 26.10 15.03 20.56 16.72 1.13 29 17 31 24 16 11 10 25 15 10 - 45.40 27.62 48.57 38.73 25.40 17.78 16.51 40.32 23.81 15.87 - 104 43.33 103 42.92 99 41.173 80 3.42 67 27.92 62 25.83 56 23.33 52 21.67 51 21.42 40 16.50 2 0.83 Table 20 shows the distribution of the responses of the households by the major issues they identified in the province. More than half (51.17%) of the households identified corruption as a major issue in Iloilo. Solid waste management problems come next with 44.17% of the total households identifying it as a major problem in the province. Other major problems identified were mostly non-environmental problems: problems with provincial health system, unemployment, insufficient safe water, agricultural problems, crimes, insufficient electrical energy, rebel and leftist groups and problems in transport systems. There were no significant differences on the major issues identified by both kinds of households except for those households willing-to-pay for an improved municipal solid waste collection that identified more environmental problems as major issues, as contrasted to those who are not willing-to-pay for an improved collection service. Table 20. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and Identified Major Issues in the Province of Iloilo* Household Type All Not Willing-toWilling-to-Pay (N=240) VARIABLE Pay (n=177) (n=63) No. % No. % No. % Corruption Solid Waste Management Problems Problems in Provincial Health System Unemployment in the Province Insufficient Safe Water Agricultural Problems Crime in the Province Insufficient Electricity Problems Rebel and Leftist Groups Insufficient Transport Services Other problems in the Province 90 73 71 49 47 51 44 47 37 13 10 50.96 41.13 40.00 27.68 26.33 28.93 24.97 26.44 20.79 7.46 5.65 33 33 26 30 16 11 15 9 8 6 - 18.42 18.76 14.58 16.95 9.15 6.44 8.25 5.08 4.29 3.16 - 123 106 97 79 63 63 59 56 44 19 10 51.17 44.17 40.25 32.92 26.17 26.08 24.50 23.25 18.50 7.83 4.17 *multiple responses Problems in the municipal level were also identified. Table 21 shows the distribution of the participating households based on their identified major issues in the Municipality of Miagao. Two environmental issues topped the list of major issues in the municipality as households identified solid waste management problems (42.42%) and unclean surroundings (34.92%) as main municipal problems. Problems in the health services, crime, corruption, agricultural problems and insufficient electricity and water problems strongly follow as identified by households. Other problems identified were effects of climate change and unemployment in the municipality. Both household types identified solid waste management as the major issue in the municipality of Miag-ao. However, a larger proportion of households willing-to-pay for an improved service identified problems in solid waste management as the major issue among other issues in the municipality. Table 21. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and Identified Major Issues in the Municipality of Miag-ao* VARIABLE Solid Waste Management Problems Unclean Surroundings 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 Other Problems in the Municipality Household Type Willing-to-Pay Not Willing-to-Pay (n=177) (n=63) No. % No. % 79 44.75 23 35.87 62 35.03 22 34.60 65 36.50 15 24.13 56 31.75 22 34.92 58 32.99 18 28.89 61 34.69 13 21.27 41 23.16 32 51.43 48 27.01 14 21.90 31 17.51 15 24.44 25 14.12 13 20.95 9 5.20 1 1.59 All (N=240) No. 102 84 80 78 76 75 73 62 46 38 10 % 42.42 34.92 33.25 32.58 31.92 31.17 30.58 25.67 19.33 15.92 4.25 *multiple responses Table 22 shows the level of concern of households in the municipality towards environmental and resource protection. Results show that higher proportion of the study participants believed that the households in the municipality were concerned with the environment and natural resources. More households willing-to-pay for an improved municipal solid waste collections service, however, believed that more households in the municipality were not concerned with their environment as compared to those households not willing-to-pay for an improved service. Table 22. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and their Opinion on the Level of Concern of All Households in the Municipality Towards Environmental Protection LEVEL OF CONCERN Not Very Concerned Not Concerned Neutral Concerned Very Concerned Household Type Willing-to-Pay Not Willing-to-Pay (n=177) (n=63) No. % No. % 51 28.81 31 17.51 21 33.33 24 13.56 5 7.94 36 20.34 19 30.16 35 19.77 18 28.57 All (N=240) No. 51 52 29 55 53 % 21.25 21.67 12.08 22.92 22.08 The study participants were asked to identify the important environmental problems in the municipality of Miag-ao. This aimed to see whether households are concerned with solid waste management as a major environmental problem in the town proper. Table 23 shows the distribution of the households based on their identified major environmental issues. Problems in municipal solid waste management (65.50%) were identified by the study participants to be the major environmental problem in the Municipality of Miag-ao, Iloilo. Land conversion, agricultural problems, water pollution and flooding follow. Seven (7) out of 10 households (72.77%) willing-to-pay for an improved collection service identified problems in solid waste management as main environmental issue. Meanwhile, about half (45.08%) of the households not willing-to-pay for an improved service identified problems in SWM as main environmental issue. Table 23. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and the Identified Major Environmental Issues* VARIABLE Solid Waste Management Problems Land Conversion Agricultural Problems Water Pollution Flooding Air Pollution Climate Change Extinction of Natural Resources Pests Other Environmental Problems Household Type Willing-to-Pay Not Willing-to-Pay (n=177) (n=63) No. % No. % 129 96 78 61 50 57 43 7 7 15 72.77 54.24 44.29 34.46 28.25 32.20 24.29 3.84 3.84 8.25 28 37 26 37 19 11 17 7 3 7 45.08 58.41 41.90 58.73 30.16 16.83 26.67 11.43 4.76 11.43 All (N=240) No. 157 133 105 98 69 68 60 14 10 22 % 65.50 55.33 43.67 40.83 28.75 28.17 24.92 5.83 4.08 9.08 *multiple responses The study participants were also asked of their opinions regarding the level of seriousness of the problems of the municipality on solid waste management. Table 24 shows the distribution of the households based on their opinion on the level of seriousness of the municipality’s problems in solid waste management. Most households believed that the municipality has serious problem in solid waste management. More households willing-to-pay for an improved municipal solid waste collection service believe that the municipality is facing serious problems in solid waste management, as opposed to those who are not willing-to-pay that believe that solid waste management was not a serious problem of the municipality. Table 24. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and their Opinion on the Level of Seriousness of the Municipality’s Problems in Solid Waste Management Household Type All Willing-to-Pay Not Willing-to-Pay (N=240) LEVEL OF CONCERN (n=177) (n=63) No. % No. % No. % Not Very Serious Not Serious Neutral Serious Very Serious 33 9 42 53 40 18.64 5.08 23.73 29.94 22.60 9 19 14 9 12 14.29 30.16 22.22 14.29 19.05 42 28 56 62 52 17.50 11.67 23.33 25.83 21.67 Participants were then asked on their five proposed solutions to solve the problems in municipal solid waste management. Table 25 shows the distribution of participating households based on their identified solutions on problems in municipal solid waste management. Improvement of solid waste collection service (61.42%) was identified as the major solution to the problems in the municipality’s solid waste management. Proper segregation (42.33%) and regular home cleanup (40.83%) were also identified by participants to be other solutions to the problems. Both household types believed that improvement of solid waste collection service is the best solution to the municipality’s problem in solid waste management. Table 25. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and Identified Solutions on Problems in Municipal Solid Waste Management Household Type Not Willing-toWilling-to-Pay SOLUTIONS Pay (n=177) (n=63) No. % No. % 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 of proper SWM Limiting of Plastic Usage Other solutions not provided All (N=240) No. % 106 78 58 69 53 60.11 44.07 32.54 39.21 29.83 41 24 40 16 29 65.08 37.46 64.13 25.08 46.03 147 102 98 85 82 61.42 42.33 40.83 35.50 34.08 47 55 21 25 18 26.67 31.30 12.09 14.24 9.94 15 1 12 8 3 23.49 2.22 19.37 12.38 4.76 62 57 34 33 21 25.83 23.67 14.00 13.75 8.58 Table 26 shows the average Knowledge Index Rating of the study participants. This was derived from their score on their awareness questions that measured their knowledge regarding proper solid waste management. The average score of all study participants was 8.00. The Knowledge Index Rating of households willing-to-pay for an improved municipal solid waste collection service was slightly higher than housholds not willing-to-pay for an improved service. This means that households which were willing-to-pay for an improved municipal solid waste collection service has higher level of knowledge on proper solid waste management than those who are not willing-to-pay. Table 26. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and Level of Knowledge on Proper Solid Waste Management Household Type VARIABLE Knowledge Index Rating (mean) Willing-to-Pay (n=177) Not Willing-to-Pay (n=63) 8.06 7.86 All (N=240) 8.00 Households were also asked of their perception towards improvement of municipal solid waste collection as solution to the problems in municipal solid waste management of the Municipality of Miag-ao. Results show (Table 27) that most households believed that improvement of the municipal solid waste collection service is definitely a very good solution to the problems of the municipality in solid waste management. Results also show that both types of households believed that improvement in the collection service would lead to a better solid waste management in the municipality of Miag-ao, Iloilo. Table 27. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and Perception Towards Improvement of Solid Waste Collection Service as Solution to Problems in Solid Waste Management Household Type LEVEL OF PERCEPTION All TOWARDS IMPROVEMENT Willing-to-Pay Not Willing-to-Pay (N=240) OF SWC AS SOLUTION TO (n=177) (n=63) SWM PROBLEMS No. % No. % No. % Definitely Yes Yes Neutral No Opinion 96 52 26 3 54.24 29.38 14.69 1.69 32 19 10 2 50.79 30.16 15.87 3.17 134 75 36 5 55.83 31.25 15.00 2.08 Desired Characteristics of an Improved Municipal Solid Waste Collection Service Participating households were then asked of their desired characteristics of an improved municipal solid waste collections service. The following section is divided into two parts: the desired preparation methods of households for collection and their desired characteristics of the collection service. Preparation for Collection Table 28 shows the distribution of participating households based on their desired preparation methods for an improved collection service. All study participants still wanted to have their solid wastes segregated before it will be collected. Plastic containers were preferred by households to be the overall solid waste container for collection (37.50%), followed by sacks and baskets (both 26.67%) and original containers (2.50%). Households willing-to-pay for an improved municipal solid waste collection service preferred plastic as overall solid waste container, in contrast with households not willing-to-pay that preferred sacks as overall container. Table 28. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and their Desired Preparation Methods for an Improved Municipal Solid Waste Collection Service Household Type All Not Willing-toWilling-to-Pay (N=240) VARIABLE Pay (n=177) (n=63) No. % No. % No. % Segregation for Solid Wastes Waste to be Segregated Waste not to be Segregated Overall Solid Waste Container Plastic Sack Basket Original Container Others Containers to be Returned Return Not Return Pickup Area Household Main Highway/Route Who to Pickup Wastes Collector Barangay Personnel When to Place Container Before the collector arrives As collector arrives Regular pickup by a barangay personnel 177 - 100 - 63 - 100 - 240 - 100 - 77 35 45 5 15 43.50 19.77 25.42 2.82 8.47 13 29 19 1 1 20.63 46.03 30.16 1.59 1.59 90 64 64 6 16 37.50 26.67 26.67 2.50 6.67 156 21 88.14 11.86 59 4 93.65 6.35 215 25 89.58 10.42 108 69 61.02 38.98 43 20 68.25 31.75 151 89 62.92 37.08 126 51 71.19 28.81 41 22 65.08 34.92 167 73 69.58 30.42 79 59 44.63 33.33 12 18 19.05 28.57 91 77 37.92 32.08 39 22.03 33 52.38 72 30.00 Solid waste containers were preferred by most households to be returned (89.58% versus 10.42%). Households also preferred to have their solid waste containers picked up directly from their households (69.58% versus 30.42%). Households interviewed preferred to place their containers before the collector arrives (37.92%). More households not willing-to-pay for an improved municipal solid waste collection service, however, preferred to have their wastes to be regularly picked up a barangay personnel (52.38%), as compared to households willing-to-pay for an improved collection service that preferred to place their solid waste containers before the collector arrives. Characteristics of Collection Service Table 29 shows the desired characteristics of households for an improved municipal solid waste collection service as identified by the households. More than half (51.25%) of the municipality’s households preferred a daily solid waste collection. Most households (45.00%) preferred to have their solid wastes collected at any time between 05:00 AM to 09:00 AM. Improvements wanted to be seen by households in the collection service were primarily increase in collection trucks (51.67) and increase in the number of working personnel (40.83%). Other responses (14.58%) included increase in the number of MRFs, eco-centers and public waste cans. Table 29. Distribution of Participating Households by their Decision to Pay for an Improved Collection Service and their Desired Characteristics of an Improved Municipal Solid Waste Collection Service Household Type Not Willing-toWilling-to-Pay Pay (n=177) (n=63) No. % No. % VARIABLE Frequency of Collection Daily Twice a Week Weekly Time of Collection 0500 AM – 0900 AM 0901 AM – 1200 NN 0100 PM – 0400 PM Improvements in Collection* Increase in trucks Increase in personnel Others *multiple responses All (N=240) No. % 95 42 40 53.67 23.73 22.60 28 24 11 44.44 38.10 17.46 123 66 51 51.25 27.50 21.25 82 63 32 46.33 35.59 18.08 26 24 13 41.27 38.10 20.63 108 87 45 45.00 36.25 18.75 105 69 26 59.32 38.98 14.69 19 29 9 30.16 46.03 14.29 124 98 35 51.67 40.83 14.58 Willingness-to-Pay of Households to Pay for An Improved Municipal Solid Waste Collection Service Willingness-to-pay of the study participants for the improvements they have previously identified were sampled from all eight (8) barangays in the town proper of the Municipality of Miag-ao, Iloilo is presented in Table 30. Each of the four bid prices (P35.00, P60.00, P90.00 and P120.00) were randomly assigned to 60 of the total 240 study participants. It was noted that the proportion of the study participants willing-to-pay for an improved municipal solid waste collection service is decreasing as the bid price increases. The succeeding tables are presented depending on the households’ responses’ certainty: (1) without adjustment to level of certainty and (2) with adjustment to level of certainty. In the willingness-to-pay replies without adjustment to level of certainty, 47.92% of the study participants were willing-to-pay for an improved municipal solid waste collection service, while 52.08% were not willing-to-pay for an improved service. The proportion of study participants who answered “no” increases as the bid prices increases. The willingness-to-pay replies of households adjusted to their level of certainty showed a drastic increase in not willingto-pay responses. The reason for this increase was due to the setting of household responses to their level of certainty responses, making those who are not sure of their WTP answers be counted as its opposite. Households not certain but willing-to-pay for an improved service were counted as not willing-to-pay households. On the other hand, households not certain but were not willing-to-pay for an improved service were counted as willing-to-pay households. After adjusting to the household’s level of certainty, only 29.58% of the total households were certain and willing-to-pay for an improved service. Table 30. Distribution of Participating Households by their Willingness-to-Pay for An Improved Municipal Solid Waste Collection Service Given a Specific Bid Price* Bid Price (in PhP) WTP Replies of Households without adjustment to level of certainty Yes No All WTP Replies of Households with adjustment to level of certainty Yes No All 35 (n=60) 44 (73.33) 16 (26.67) 60 (100) 42 (70.00) 18 (30.00) 60 (100) 60 (n=60) 34 (56.67) 26 (43.33) 60 (100) 16 (26.67) 44 (73.33) 60 (100) 90 (n=60) 27 (45.00) 33 (55.00) 60 (100) 10 (16.67) 50 (83.33) 60 (100) 120 (n=60) 10 (16.67) 50 (83.33) 60 (100) 3 (5.00) 57 (95.00) 60 (100) 240 (100) 71 (29.58) 115 125 169 (47.92) (52.08) (70.42) *Figure outside of parenthesis is frequency count and inside is percentage 240 (100) All (N=240) Study participants who replied “yes” in the randomly assigned bid price gave their reasons why they were willing to pay for an improved municipal solid waste collection service (Table 31). Households said that they wanted to pay for an improved service because they were not contented with the current solid waste collection service of the municipality (63.48%). Other reasons identified by participating households included: presence of a room for improvement for the current service (46.96%), the positive effect of an improved solid waste collection to the health of the household (43.48%), and the contribution of the improved municipal solid waste collection service to a better quality of the environment. Table 31. Distribution of Participating Households by the Main Reasons on Why They Are Willing-to-Pay for an Improved Municipal Solid Waste Collection Service* REASONS The household is not contented with the current SWC service The household believes that there is a room for improvement for the SWC service The household believes that SWC improvement is important for the health of the household The household believes that SWC improvement is important for a better quality of the environment The household believes SWC could increase cleanliness of the municipality The household believes that SWC will improve overall proper solid waste management The household would like to take part with the improvement of solid waste management The household sees improper solid waste disposal practices in current's service The household have trust with the local government for improving the SWC Other reasons not provided Households Willing-to-Pay (n=115) No. % 73 63.48 54 46.96 50 43.48 44 38.26 21 18.26 18 15.65 14 12.17 11 9.57 11 5 9.57 4.35 *multiple responses On the other hand, study participants who gave a “no” answer to their assigned bid price reasoned out that they were still contented with the existing municipal solid waste collection service (23.20%). Other reasons identified by households were: that there is no need to pay because the municipality is still clean (18.40%), that the household would not allot more of their budget for an improved service (15.20%), and that it is the local government’s responsibility to improve the service at no cost to people (13.60%). Table 32. Distribution of Participating Households by the Main Reasons on Why They Are Not Willing-to-Pay for an Improved Municipal Solid Waste Collection Service REASONS The household is contented with the current service The household believes that the municipality is still clean and does not need to improve service The household would not allot more of their budget for SWC The household believes that it is the local government's responsibility and not of the people The household believes that it doesn't have the responsibility over SWM problems The household would practice other disposal method/s other than collection The household believes that paying more is not a solution in solving SWM problems The household have less or not trust with the local government for improving the SWC The household believes that SWM is not its main priority Other reasons not provided Households Not Willing-to-Pay (n=125) No. % 29 23.20 23 19 18.40 15.20 17 13.60 13 12 10.40 9.60 10 8.00 9 9 7 7.20 7.20 5.60 Preferred Payment Vehicle Table 33 shows the distribution of the households based on their preferred payment vehicle for the improved municipal solid waste collection service. Most households preferred a monthly payment (73.04%) through collection tickets (82.61%). Flat rate as basis for payment for the improved service was preferred by most households (72.1%. Eight out of ten (80.87%) households preferred to pay their service fees to their respective barangays. Table 33. Distribution of Participating Willing-to-Pay Households by their Preferred Payment Vehicle Households Willing-to-Pay (n=115) VARIABLE No. % 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 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 Mean Willingness-to-Pay and Social Willingness-to-Pay Estimates The mean willingness-to-pay and social willingness-to-pay estimates were computed using the more conservative Turnbull WTP estimation that provides a lower bound mean willingness-to-pay. Due to the increase of number of those who were not willing-to-pay for an improved municipal solid waste collection service as the bid price increases, certainty responses were incorporated in the computation. Those who were uncertain with their responses to the willingness-to-pay question were regarded as not willing-to-pay, vice versa. The mean WTP of the study participants without adjustment to level of certainty amounted to P58.34 and the social WTP was P45, 621.88. However, the mean WTP with adjustment to level of certainty was P37.69 and the social WTP was P18,206.98. The computations of the mean willingness-to-pay and social willingness-to-pay estimates are shown below. Table 34. Computation of Mean WTP of Households for an Improved Municipal Solid Waste Collection Service without Adjustment to Level of Certainty tj Nj Tj Fj* fj* 35 16 60 0.267 0.267 60 26 60 0.433 0.166 90 33 60 0.550 0.117 120 50 60 0.833 0.283 120+ 0.167 Turnbull WTP = Σ tj f*j +1 = 0 (0.267) + 35 (0.166) + 60 (0.117) + 90 (0.283) + 120 (0.167) = 0 + 5.81 + 7.02 + 25.47 + 20.04 = Php 58.34 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 58.34) = 0.479 x 1632 x 58.34 = PhP 45, 621.88 Table 35. Computation of Mean WTP of Households for an Improved Municipal Solid Waste Collection Service with Adjustment to Level of Certainty tj Nj Tj Fj* fj* 35 18 60 0.300 0.300 60 44 60 0.733 0.433 90 50 60 0.833 0.100 120 57 60 0.950 0.117 120+ 0.050 Turnbull WTP = Σ tj f*j +1 = 0 (0.300) + 35 (0.433) + 60 (0.100) + 90 (0.117) + 120 (0.050) = 0 + 15.16 + 6 + 10.53 + 6 = Php 37.69 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) = (71/240) x (1,632) x (PhP 37.69) = 0.296 x 1632 x 37.69 = PhP 18,206.98 Factors Affecting the Willingness-to-Pay Decisions of Households for An Improved Municipal Solid Waste Collection Service Table 36 shows the regression result with willingness-to-pay for an improved municipal solid waste collection service in the Municipality of Miag-ao, Iloilo as dependent variable. Results show that sex (at 10% level of significance), age (at 10% level of significance), knowledge index rating (at 10% level of significance), concern on solid waste management as major problem in the municipality (at 10% level of significance) and the randomly assigned bid prices (at 1% level of significance) significantly affect the willingness-to-pay of the study participants without adjustment to their level of certainty. Table 36. Determinants of the Willingness-to-Pay of Households for Improved Municipal Solid Waste Collection Service without Adjustment to Level of Certainty VARIABLE Constant Sex (male) Age Highest Educational Attainment (college) Civil Status (married) Barangay Household Size Total Monthly Household Income Average Daily Amount of SW Generated by Households Concern on SWM as major problem in the municipality Knowledge Index Rating Perception on Improved Solid Waste Collection Service as Solution to SWM Problems Bid Price Coefficient -3.69605 0.598191 0.0371691 Std. Error 2.39553 0.305671 0.0189736 z -1.5429 1.9570 1.9590 p-value 0.12286 0.05035* 0.05011* 0.0898782 0.222864 0.00405094 0.0899143 -5.91224e-06 0.355491 0.35738 0.068569 0.101585 9.02372e-06 0.2528 0.6236 0.0591 0.8851 -0.6552 0.80040 0.53289 0.95289 0.37610 0.51235 -0.231293 0.277545 -0.8334 0.40465 0.679502 0.456338 0.409283 0.260224 1.6602 1.7536 0.09687* 0.07949* -0.159942 -0.0311647 0.338753 0.00521751 -0.4721 -5.9731 0.63682 <0.00001*** Number of cases 'correctly predicted' = 166 (69.2%) Likelihood ratio test: Chi-square(13) = 61.1359 [0.0000] On the other hand, Table 37 shows the factors that affect the decision of households to pay for an improved municipal solid waste collection service with their WTP responses adjusted to their level of certainty. Results show that sex (at 10% level of significance), average daily amount of solid waste generated by households (at 5% level of significance), concern on solid waste management as major problem in the municipality (at 10% level of significance), knowledge index rating (at 5% level of significance) and their randomly assigned bid price (at 1% level of significance) significantly affect the decisions of the households to pay for an improved service. Table 37. Determinants of the Willingness-to-Pay of Households for Improved Municipal Solid Waste Collection Service with Adjustment to Level of Certainty VARIABLE Coefficient Std. Error z p-value Constant -3.93874 3.2792 -1.2011 0.22970 Sex (male) 0.720158 0.384529 1.8728 0.06109* Age 0.0234294 0.0234312 0.9999 0.31735 Highest Educational Attainment (college) 0.0526517 0.448931 0.1173 0.90664 Civil Status (married) 0.399597 0.454281 0.8796 0.37906 Barangay -0.0581075 0.0861149 -0.6748 0.49982 Household Size 0.0909395 0.129276 0.7035 0.48177 Total Monthly Household Income -5.7792e-07 1.1022e-05 -0.0524 0.95818 Average Daily Amount of SW Generated by Households -1.0046 0.401049 -2.5049 0.01225** Concern on SWM as major problem in the municipality 0.898359 0.508741 1.7658 0.07742* Knowledge Index Rating 0.761121 0.361791 2.1038 0.03540** Perception on Improved Solid Waste Collection Service as Solution to SWM Problems 0.216363 0.415359 0.5209 0.60243 Bid Price -0.0505938 0.00777496 -6.5073 <0.00001*** Number of cases 'correctly predicted' = 202 (84.2%) Likelihood ratio test: Chi-square(13) = 96.2522 [0.0000] The p-value of the chi-square in both estimations indicates the fitness of the model at 5% level of significance, and the number of cases correctly predicted (69.2% for model without adjustment to level of certainty and 84.2% for model with adjustment to level of certainty) was high that indicates the significance of the model. CHAPTER VI SUMMARY, CONCLUSION AND RECOMMENDATIONS Summary This study was conducted mainly to describe the willingness-to-pay of households of the town proper of Miag-ao, Iloilo for an improved municipal solid waste collection service. Specifically, this study aimed to describe the socio-demographic and economic profile of the households, their solid waste disposal practices, their level of awareness of households in proper solid waste management, their desired characteristics of an improved municipal solid waste collection service, their willingness-to-pay for an improved service, and their preferred payment vehicle. Primary data were gathered through personal interviews with 240 household representatives from eight (8) barangays of the town proper of Miag-ao, Iloilo namely Baybay Norte, Baybay Sur, Bolho, Mat-y, Sapa, Tacas, Ubos Ilawod and Ubos Ilaya. Secondary data were gathered through interviews with the officer-in-charge of the municipality’s Municipal Environmental and Natural Resources Office and the head of the General Services Office. Seven out of 10 households interviewed were willing-to-pay for an improved municipal solid waste collection service. Most of which were males, in their mid-fifties, married and college graduates. Most of them if unemployed were government employees, or contractual or temporary workers. The average number of household members was 4 and the average number of household members earning income was 2. The mean total monthly household income was PhP 15,463.00. Ninety-one percent of the houses were owned. Food wastes, yard wastes, plastic and paper waste materials were common kinds of waste materials being generated by households. Households produced an average of 1.46 kilograms of solid wastes daily. The daily average solid waste load of the municipality was 2,350.08 kilograms. Baybay Norte’s households generate the highest average volume of solid waste materials on a daily basis. Plastic containers and sacks were the preferred solid waste containers of households. Most households preferred solid waste collection as method of solid waste disposal. Most waste materials are being disposed daily by households in their respective solid waste containers. Two-thirds of the total households were availing the existing collection service. All households were found to be segregating their waste materials for solid waste collection. Sacks were preferred as overall container of solid waste materials. Most of the containers used for collection were being returned by the collectors to the households. Solid wastes were picked up from the households on existing service. An average of 7 years was the length of service utilization of households on the existing solid waste collection service. Not all household were paying for the collection service of PhP 30.00 monthly. Only 69.38% were paying for the existing service in their respective barangays with collection tickets as mode of payment. Eight out of 10 households were contented with the existing solid waste collection service. The remaining households pointed out wrong processes, existing collection route problems and behavior of collectors as reasons for discontentment on the existing service. Diseases associated to wrong collection processes were the primary problems encountered by households in the existing collection. Most households believed that crime, corruption, unemployment and poverty were the major issues our nation faces. Climate change was the top environmental problem households identified. Corruption and solid waste management problems in the provincial level were the major identified issues by households. Solid waste management problems were identified to be the major issue being faced by the municipality according to the households. The study participants believed Miag-aoanons were concerned with their environment and natural resources. Problems in solid waste management, however, were identified by households to be the major environmental problem in the municipality. Households also believed that the municipality has a serious problem in solid waste management. The households have Knowledge Index Rating of 8.00, which shows the strong knowledge of households in proper solid waste management. Improvement in municipal solid waste collection service was identified by most study participants as major solution to the problems in the municipality’s solid waste management. Study participants were asked of their desired characteristics of an improved municipal solid waste collection service. It was found out that most households wanted their solid wastes to still be segregated. Households preferred to place their solid waste materials in plastic containers, which later must be returned by the collectors after the collection. Solid wastes were preferred by households to be picked up directly from their households by the collectors. Also, study participants preferred to have their solid waste containers to be placed before the collector arrives. Other attributes of an improved municipal solid waste collection service preferred by households was to make the solid waste collection daily at any time within 05:00 AM to 09:00 AM. Increase in collection trucks and increase in the number of working personnel were identified by households to further improve solid waste collection. After being asked of their preferred characteristics of an improved municipal solid waste collection service, households were asked of their willingness-to-pay at a given bid price. Bid prices were PhP 35.00, PhP 60.00, PhP 90.00 and PhP 120.00. About forty-eight percent (47.92%) of households were willing-to-pay for a given bid price without adjustment in level of certainty and 29.58% of households were willing-to-pay for an improved service with their decisions adjusted to their level of certainty. The amount of households willing-to-pay for a given bid price for both cases (adjusted and not adjusted to level of certainty) were decreasing as the bid price increases. The reasons stated for their decision to pay included their service discontentment, belief on possible service improvement and health reasons. On the other hand, the remaining households identified several reasons for not being willing-to-pay for an improved collection service. This includes existing service contentment, belief that the municipality is still clean for a service improvement to be imposed and that local government must improve services at no additional costs to people. Most study participants preferred to pay the service fee for the improved service at a monthly flat rate through collection tickets. Households also preferred to pay their service fee through their respective barangays than directly to the municipality. The mean willingness-to-pay of households without adjusting to their level of certainty was PhP 58.34. Meanwhile the mean WTP of the households with adjustment to their level of certainty was PhP 37.69. The social mean willingness-to-pay was recorded to be only PhP 45,621.88 and PhP 18,204.57, respectively. The study participants’ sex, age, concern on solid waste management as major problem of the municipality, knowledge index rating and randomly assigned bid price were the identified significant factors for their decision to pay for an improved municipal solid waste collection service without adjustment to their level of certainty at 10%, 5% and 1% level of significance. On the other hand, the participants’ sex, concern on solid waste management as major problem of the municipality, knowledge index rating, randomly assigned bid price and household’s average daily amount of solid wastes generated were the determinants for the households’ decision to pay for an improved service with their level of certainty adjusted. Conclusion Households in the town proper of Miag-ao, Iloilo were mostly concerned with solid waste management as a problem in their municipality. Households identified improvement in municipal solid waste collection service as the key solution to the problems in solid waste management. However, 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 was manifested by these households. Their willingness-to-pay replies in the randomly assigned bid prices showed that households were less likely to pay for their desired improved service. Households have high knowledge and concern level on issues pertaining to solid waste management in both household and community level. These level of knowledge and concern were significantly observed to be affecting the households’ decision to be more willing-to-pay for an improved municipal solid waste management services, in this case – municipal solid waste collection service. It was therefore concluded that study participants would be more willing-topay for an improved service if they were well-informed about proper solid waste management. The choices of households for an improved municipal solid waste collection service package were almost similar. There were no specific attributes that the households desired to change with the existing service and payment vehicle, except for a designation of a particular time of solid waste collection and improvements of the facilities used in the service. Recommendations This study showed the need for the municipality of Miag-ao to improve their solid waste collection service. There was a high level of contentment of households on the existing service but several solid waste problems persist. However, the major constraint identified by the study was that most households were not willing-to-pay for the service improvement. The researcher recommend the local government to review the existing municipal solid waste collection service. Several problems were identified by the households to be present with the current service. It is also recommended that the municipality must check if the existing processes and equipments used in the collection service comply with public health and safety standards. It is also recommended that households must be intensively educated with proper solid waste management. Knowledge index ratings in the study conducted affect the willingness-topay decisions of households and the government must intensify its proper solid waste management education to increase the awareness and knowledge level of households on the collection service. While it is given too little attention, urbanizing municipalities must continue to strive for a feasible solid waste management for the purpose of avoiding the larger problems these could create in the future. If the community will be not very much willing to help in shouldering the cost of solid waste management, the government will have no choice but to extract their efforts to alleviate the situation. It is recommended that local governments should work on both incentive-based and punitive-based schemes for solid waste management. 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Municipal Solid Waste Management in India: From Waste Disposal to Recovery of Resources. Waste Management 29 (2009) 1163-1166. Journal of Waste Management. Downloaded on August 06, 2011 at http://www.ncbi.nlm.nih.gov/pubmed/18829290 Wang, Hua, Jie He, Yoonhee Kim and Takuya Kamata. Municipal Solid Waste Management in Small Towns: An Economic Analysis Conducted in Yunnan, China. Downloaded April 07, 2012 from http://wwwwds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2011/08/22/000158349_20110 822085839/Rendered/PDF/WPS5767.pdf LEVI GUILLERMO LIMA GEGANZO Research Assistant University of the Philippines Visayas Foundation, Inc. (UPVFI) Villadolid Hall, UPV Miag-ao, Iloilo Philippines 5023 0917.9327.150. / (033) 3155312 gourvy@live.com EDUCATIONAL ATTAINMENT UNIVERSITY OF THE PHILIPPINES VISAYAS, 2008 – 2012 Bachelor of Science in Economics UP General Weighted Average: 1.98 College Scholar, Academic Year 2011 – 2012 UNIVERSITY OF THE PHILIPPINES HIGH SCHOOL IN ILOILO, 2004 – 2008 High School Scholar, 2004 – 2008 SCHOLARSHIPS DILG – Local Government Scholar Department of Science and Technology – SEI Scholar UP High School in Iloilo – John Nelson Divinagracia Scholar 2009 – 2012 2008 – 2009 2004 – 2008 SIGNIFICANT COURSEWORK Economics Research, Environmental Economics, Market Management, Public Policy and Economics, Development Economics, Business Management and Project Implementation WORK EXPERIENCES Research Assistant, June 2012 – present University of the Philippines Visayas Foundation, Inc. – DOE Algae Biofuels Research UP Visayas College of Arts and Sciences – Sumitomo Foundation UP Visayas College of Fisheries and Ocean Sciences - Institute of Fisheries Policy and Development Studies Policy Draft Author, September 2012 – November 2012 Co-author of the Draft National Framework of the Coastal Resource Management Plan and National Framework for Protection of Marine Sanctuaries of the Republic of Liberia Chief of Staff and Marketing Assistant, January 2012 – February 2012 2012 Iloilo International Film Festival Film Development Council of the Philippines and the Iloilo City Government RECENT RESEARCH WORKS Subade, Rodelio F., Fernandez, PRJ., Geganzo, LGL. 2013. Protecting Caluya’s Biodiversity and Building the Voices of Caluya’s Seaweed Farmers. A paper to be presented in Philippine Association of Marine Science’s 12th National Symposium on Marine Science. Boeh, William Y., Subade, RF., Geganzo, LGL. 2013. Zooming-In Co-Management Of Coastal Resources To Community Level: A Case In Southern Iloilo, Philippines. (Presented in 2013 Asian Fisheries and Aquaculture Forum (Yeosu, South Korea) (First International Journal)) Boeh, William Y., Subade, RF, Geganzo, LGL. 2012. Evolving Co-Management Initiatives in Coastal Resource Management of Barangay Sinogbuhan, San Joaquin, Iloilo. Subade, Rodelio F. (Assisted). Comparative Analysis of Japan’s Influence and Contribution in Iloilo, Philippines and North Sulawesi, Indonesia Geganzo, Levi Guillermo L., 2012. Willingness-to-Pay for an Improved Municipal Solid Waste Collection Service Among Households in the Town Proper of Miag-ao, Iloilo. A research paper submitted to the University of the Philippines Visayas. Geganzo, Levi Guillermo L., 2011. Reproductive Health Issues of Young Urban Professionals Working in Business Process Outsourcing Industry Workers in Metro Iloilo. A research paper submitted to the University of the Philippines Visayas. Geganzo, Levi Guillermo L., et al. 2010. Economic Feasibility Study of the Iloilo Perimeter Boundary Terminal: A Project Evaluation and Policy Analysis of the Revised Ordinance Establishing Boundaries for Provincial Public Utility Vehicles Entering Iloilo City. A policy paper submitted to the University of the Philippines Visayas. Geganzo, Levi Guillermo L., et al. 2008. The Effectiveness of Commercial Feeds Produced Locally and Abroad, and Egg Yolk to the Growth of Indian White Shrimp, Penaeus indicus. A research paper submitted to the University of the Philippines High School in Iloilo. MEMBERSHIPS IN PROFESSIONAL, CIVIC AND CULTURAL ORGANIZATION Philippine Economics Society, 2012 – present (member through JPES) The largest federation of economists in the Philippines / The largest confederation of economics students in the Philippines (First UP Visayas student to join the confederation) UPV Oeconomicus, 2009 – 2012 The largest economics organization in the Visayas (President) During term, UPV Oeconomicus reached its status of being one of the best performing student organizations in UPV and amongst JPES-membering organizations Created both the socio-civic and academic extension subsidiaries of the organization that produced most activities of the organization Have the most integrated communication system in the campus, that utilizes mobile, social media and print platforms Have the most comprehensive financial statement among all student organizations Film Development Council of the Philippines, 2012 – present Served as the head of the mobile cinema that brought worthwhile films to the people Served as a marketing assistant and chief of staff of the council during the 2012 Iloilo International Film Festival Served as the director of the social media platform of the film festival publicity scheme Philippine Red Cross – Red Cross Youth, 2000 – present One of the first to join the Red Cross Youth in the Iloilo Chapter for as early as in grade school Awarded as the Most Outstanding Red Cross Youth in 2007 by the Iloilo Chapter of the Philippine National Red Cross UP High School in Iloilo – Senior Red Cross Youth Council, 2004 – 2008 During term as President, UPHSI – SRCYC was the best-performing school organization next to the school’s Student Council Created the emergency response team of the organization and equipped the organization with necessary facilities despite lack of financial support Integrated the emergency scheme of the organization with the young and emerging internet and mobile platforms RECENT SEMINARS AND TRAININGS ATTENDED AND NUMBER OF TRAINING HOURS Stocks Investing and Training Disaster Preparedness and Vulnerability Assessment Banknotes and Coins Training Economic Forums (Mixed) Aquaculture Forums and Trainings DOST Summer Orientation and Enrichment Program Research Internship Dengue Prevention Forum Mass Media and Journalism Leadership Trainings First Aid Trainings Coastal Resource Management Eco-Tourism Marketing 15 hours 4 hours 3 hours 8 hours 8 hours 160 hours 120 hours 4 hours 12 hours 16 hours 48 hours 3 hours 4 hours CONSULTING EXPERIENCE Private Business Financial Statement Auditor, February 2012 Executive Event Organizer, 11th Young Economists’ Mini-Convention Visayas, September 2011 Head Event Organizer, Vision 2020 Philippines (with Philippine Stock Exchange, Inc., World Youth Alliance, DepEd, CHED, NEDA, JPES and the Iloilo Cty Government), February 2012 Research Writer, Writers.PH – Makati, March 2011 – May 2011 Paper Consultant, UPV Young Economists’ Convention Paper Finalist, August 2011 Guest Radio Host – Commentator, Radyo ng Bayan – Iloilo, January 2008 Paper Consultant, UPV – Economics Research, June 2012 – November 2012