HOUSEHOLDS’ WILLINGNESS TO PAY FOR IMPROVED SOLID WASTE MANAGEMENT IN TAMALE METROPOLITAN AREA, NORTHERN GHANA

Abstract

This paper examined households’ willingness to pay for improved solid waste management service in the Tamale Metropolitan Area in Northern Region of Ghana. The contingent valuation method (CVM) was used to identify the willingness to pay (WTP), while an ordered probit model was estimated to determine the factors influencing such willingness to pay. We found that a significant number of the respondents were willing to pay for the improved services, the amount ranging from GH₵ 2 to GH₵ 25 per monthly collection. Also, households’ WTP were positive and significantly influenced by the sex, age, marital status and education of the household head as well as household income. A key policy implication of this result is that a flat rate cannot be charged across households. Poorer and uneducated households should be charged a lower rate than relatively rich and educated households.

Keywords: Ordered probit model, Contingent valuation method,  Willingness to pay, Ghana, households