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51 st Annual Philippine Economic Society Meeting. Intercontinental Manila.

WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT?. The Case of Urbanizing Municipalities. LEVI GUILLERMO LIMA GEGANZO University of the Philippines Visayas Miag-ao , Iloilo, Philippines 5023. 51 st Annual Philippine Economic Society Meeting. Intercontinental Manila.

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51 st Annual Philippine Economic Society Meeting. Intercontinental Manila.

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  1. WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities LEVI GUILLERMO LIMA GEGANZO University of the Philippines Visayas Miag-ao, Iloilo, Philippines 5023 51st Annual Philippine Economic Society Meeting. Intercontinental Manila.

  2. Presentation Outline PART I: Status of Solid Waste Management in Iloilo PART II: Factors Affecting The Willingness-To-Pay For An Improved Solid Waste Collection in Miag-ao Town Proper Among Households in Miag-ao Town Proper

  3. Solid Waste Management Schemes

  4. Developed SWM Strategies Using 5Rs • bag fees / eco-bag • plastic ban • penalties for littering and other fines • incentive programs • solid waste collection fee

  5. Solid Waste Management Criteria • Waste Segregation at Source • Material Recovery Facility • Type of MSW Disposal (Controlled or Open) • Safe Closure Plan • Sanitary Landfill • Presence of Municipal SWM Plans

  6. Types of Municipal SWM Plans 1.) Anti-Littering Ordinances / Anti-Dumping Ordinances 2.) Adoption of RA 9003 (ESWMA) 3.) Municipal Environmental Codes 4.) Solid Waste Management Ordinances 5.) Clean and Green Programs 6.) Comprehensive Solid Waste Management Plan

  7. Status of SWM in Iloilo Province

  8. Rationale of the Study • The Municipality of Miag-ao is dubbed to be one of the best effective implementers of integrated solid waste management in the nation after being a hall-of-famer of the Office of the President as the Cleanest and Greenest Municipality in the Region VI - Western Visayas for three consecutive years and winning the national award for several times.

  9. Photo Courtesy of 365greatpinoystuff.wordpress.com and digitalphotographer.com.ph

  10. However, despite its cleanliness, Miag-ao’s increasing economic activities and expansion leads to problems in solid waste management of the town proper. Increased amount of garbage in creeks and waterways, coastal areas and public properties can be observed.

  11. Rationale of the Study increasing volume of solid waste municipal solid waste management services

  12. CONSUMPTION SOLID WASTE MANAGEMENT PROCESSES GENERATION COLLECTION TRANSPORTATION MATERIAL RECOVERY & PROPER WASTE DISPOSAL Brgy. Tugara-ao, Miag-ao, Iloilo Households Office of General Municipal Services Dump Trucks

  13. PHP 600,000.00 PHP 441,920.00 PHP 158,080.00 Municipal Proposed Budget for Solid Waste Management Programs (2011) Actual Collected Revenue for Solid Waste Management Programs (2010) Shortage in Budget for Municipal Solid Waste Management Programs

  14. Rationale of the Study This study was dedicated for the purpose of improving the municipal solid waste collection in the Town Proper of Miag-ao, Iloilo, Philippines. This study will focus on what factors affect the willingness-to-pay of households for an improved municipal solid waste collection service.

  15. Significance of the Study • For legislative purposes • For early sustainable development plans of urbanizing municipalities

  16. Objective of the Study to identify the factors affecting the willingness-to-pay of the households in the town proper of the Municipality of Miag-ao, Iloilo for an improved municipal solid waste collection service

  17. Limitations of the Study • Due to time constraints and other considerations, the research only covered the households in the Town Proper of Miag-ao, Iloilo, Philippines as the area of the study. • A total number of 240 households from the eight (8) barangays in the Miag-ao Town Proper were used as study participants.

  18. Theoretical Framework • Municipal solid waste collection service is one of the services provided by the local government, which aims to eradicate garbage littered all around the community. • Solid waste collection helps in the conservation and protection of the environment since the service is designed to collect solid wastes that are one of the major reasons contributing to the destruction of the environment.

  19. Theoretical Framework • However, benefits that people can get from an efficient and effective solid waste management such as environmental quality cannot be reflected in normal market prices because it has the characteristics of a non-market priced good. • In order to monetize the cost of the non-market priced good, non-market valuation methods are being used.

  20. Theoretical Framework Contingent Valuation Method and Willingess-to-Pay

  21. Derivation of Willingness-To-Pay Where: WTP = average willingness-to-pay of households v = the interval between prices N = number of values of price k = lowest possible value

  22. Estimation of MWTP Coefficient Estimation Mean maximum WTP = 1/β1 [ln (1+ e α0+ β2 Q + Σ βi Si)] Where, β0 and β1 are absolute coefficient estimates from the logistic regression

  23. Estimation of MWTP Turnbull WTP Estimation M* ELB (WTP) = Σ tj (F*j+1 - F*j) j = 0 Where, F*j = N*j / T*j is the ratio of those who are not willing-to-pay on an offered bid price, where N*j = number of not willing-to-pay responses T*j = number of samples offered a specific bid tj = bid price, and f*j = Turnbull estimate of N*j / T*j.

  24. Empirical Model WTP = F(x1, x2, x3,…,x9) Where, X1 = sex X2 = age X3 = highest educational attainment X4 = civil status X5 = household size X6 = household’s total monthly income X7 = average daily volume of waste generated X8 = level of knowledge of household in proper solid waste management X9 = bid price

  25. Regression Binary Logistic Model where, Y is the response of household on their willingness-to-pay Z is the sum of the products of the coefficients and the dependent variables (plus the error term)

  26. Population and Number of Households by Barangays in Miag-ao Town Proper

  27. Population and Number of Households by Barangays in Miag-ao Town Proper

  28. Distribution of Participating Households by their Decision to Pay for an Improved Municipal Solid Waste Collection Service

  29. Socio-Demographic and Economic Profile of Households

  30. More Willing-To-Pay (Socio-Demographics and Education) 1. Males 2. Older people 3. Married individuals 4. College and High School Graduates

  31. More Willing-To-Pay (Occupation) 1. Government Employees 2. Monthly Income: 3,542 vs 3,622 3. Temporary / Contractual Workers

  32. More Willing-To-Pay (Household/OcuupationalInformation) • Bigger Household Size • Lower Income (14,717 vs 17,561) • Owned House vs. Others

  33. Household Solid Waste Disposal Practices

  34. More Willing-To-Pay (Solid Waste Disposal Practices) Households with more wastes (all types, except yard wastes) are not willing-to-pay for improved services, in terms of volume and type-count. Households not willing-to-pay for improved services are disposing their wastes more frequently than those willing-to-pay.

  35. More Willing-To-Pay (Solid Waste Disposal Practices) Households more willing-to-pay for improved SWC are slightly more willing-to-pay, than those who are not willing-to-pay. Households more willing-to-pay are more contented in the current SWC thank those who are not willing-to-pay.

  36. Perception and Concern of Households on Solid Waste Collection

  37. Major National Issues and Households’ Perception • Crime • Corruption • Unemployment • Poverty • Climate Change • Env’l Degradation • Problems in Health System • SWM Problems • Calamity and Disaster • Overpopulation

  38. Major Provincial Issues and Households’ Perception • 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

  39. Major Municipal Issues and Households’ Perception • Solid Waste Management Problems • Problems in the Health System • Crime in the Municipality • Corruption in the Local Government • Agricultural Problems • Insufficient Electricity Problems • Insufficient Safe Water • Effects of Climate Change • Unemployment in the Municipality

  40. Major Municipal Environmental Issues and Households’ Perception • Solid Waste Management Problems • Land Conversion • Agricultural Problems • Water Pollution • Flooding • Air Pollution • Climate Change • Extinction of Natural Resources • Pests

  41. Level of Concern on Environmental Protection Households are very concerned in protecting the environment. Households perceived that SWM is a major issue in the municipality.

  42. Household Perception on Solving SWM Issues • Improvement of solid waste collection • Proper segregation of wastes • Regular home cleanup • Regular barangay cleanup • Improvement of MRFs • Unclogging of Wastes in Drainages and Waterways • Improvement of Recycling • Teaching proper SWM • Limiting of Plastic Usage

  43. Knowledge Index Rating (KIR)

  44. Willingness-to-Pay of Households to Pay for An Improved Municipal Solid Waste Collection Service

  45. Bid Prices and WTP

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