Economic and Behavioral Determinants of Households’ Willingness to Pay for Improved Solid Waste Management: Evidence from Arba Minch, Ethiopia

This study examines the economic and behavioral determinants of households’ willingness to pay (WTP) for improved solid waste management in Arba Minch town, Southern Ethiopia. A cross-sectional survey of 185 randomly selected household heads was conducted in May–June 2023 using a structured questionnaire and a double-bounded contingent valuation method. A double-hurdle model was applied to analyze factors influencing both the decision to pay and the maximum WTP. Results show that 83.8% of households were willing to pay, with an average WTP of 47.5 ETB per month (95% CI: 39.88–55.22 ETB). Significant determinants include household income, sex of household head, house ownership, living arrangement, volume of solid waste generated, awareness of proper waste management, health risk perception, and confidence in municipal rules. Female-headed, renter, and condominium households, as well as those generating larger waste volumes, exhibited higher WTP. Awareness and health perception increased participation, while satisfaction with current services reduced it. Findings suggest that income-sensitive tariffs, enhanced awareness campaigns, stronger municipal regulations, and targeted interventions in shared residential areas can improve household participation and cost recovery, contributing to sustainable urban waste management in Arba Minch and similar developing cities.