WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT

WHO 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.

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 Miagao Town Proper WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Recycle Solid Waste Management Schemes Refuse Reduce Reuse Recover WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Developed SWM Strategies Using 5 Rs • bag fees / eco-bag • plastic ban • penalties for littering and other fines • incentive programs • solid waste collection fee WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Solid Waste Management Criteria 1. 2. 3. 4. 5. 6. Waste Segregation at Source Material Recovery Facility Type of MSW Disposal (Controlled or Open) Safe Closure Plan Sanitary Landfill Presence of Municipal SWM Plans WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Status of SWM in Iloilo Province Waste Segregation at Source 18, 6 Yes No 81, 4 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Presence of Material Recovery Facilities 13, 953488372093 Yes No 86, 046511627907 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Type of Garbage Disposal 48, 8372093023256 51, 1627906976744 Controlled Open WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Safe Closure Plan 30, 2325581395349 Yes No 69, 7674418604651 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Presence of Sanitary Landfill 37, 2093023255814 Controlled Open 62, 7906976744186 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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. WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities Photo Courtesy of 365 greatpinoystuff. wordpress. com and digitalphotographer. com. ph

• 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. WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Rationale of the Study • WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

CONSUMPTION GENERATION Households SOLID WASTE MANAGEMENT PROCESSES COLLECTION Office of General Services TRANSPORTATIO N Municipal Dump Trucks MATERIAL RECOVERY & PROPER WASTE DISPOSAL Brgy. Tugara-ao, Miag-ao, Iloilo WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Municipal Proposed Budget for Solid Waste Management PHP 600, 000. 00 Programs (2011) Actual Collected Revenue for Solid Waste Management PHP 441, 920. 00 Programs (2010) Shortage in Budget for Municipal Solid Waste PHP 158, 080. 00 Management Programs WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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. WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Significance of the Study • For legislative purposes • For early sustainable development plans of urbanizing municipalities WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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. WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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. WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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, nonmarket valuation methods are being used. WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Theoretical Framework Contingent Valuation Method and Willingess-to-Pay WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Estimation of MWTP Coefficient Estimation Mean maximum WTP = 1/β 1 [ln (1+ e α 0 + β 2 Q + Σ βi Si)] Where, β 0 and β 1 are absolute coefficient estimates from the logistic regression WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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 * / T*. f*j = Turnbull estimate of NWHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? j j The Case of Urbanizing Municipalities

Empirical Model Where, WTP = F(x 1, x 2, x 3, …, x 9) X 1 = sex X 2 = age X 3 = highest educational attainment X 4 = civil status X 5 = household size X 6 = household’s total monthly income X 7 = average daily volume of waste generated X 8 = level of knowledge of household in proper solid waste management X 9 = bid price WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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) WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Population and Number of Households by Barangays in Miag-ao Town Proper Barangay Baybay Norte Baybay Sur Bolho Mat-y Sapa Tacas Ubos Ilawod Ubos Ilaya TOTAL Household Population Number of Households 2, 434 288 1, 108 240 519 87 2, 190 112 575 362 1, 033 183 955 181 909 179 9, 723 1, 632 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Population and Number of Households by Barangays in Miag-ao Town Proper Barangay Baybay Norte Baybay Sur Bolho Mat-y Sapa Tacas Ubos Ilawod Ubos Ilaya TOTAL Household Population Number of Households 2, 434 288 1, 108 240 519 87 2, 190 112 575 362 1, 033 183 955 181 909 179 9, 723 1, 632 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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 73. 75 63 26. 25 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Socio-Demographic and Economic Profile of Households WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

More Willing-To-Pay (Socio-Demographics and Education) 1. Males 2. Older people 3. Married individuals 4. College and High School Graduates WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

More Willing-To-Pay (Occupation) 1. Government Employees 2. Monthly Income: 3, 542 vs 3, 622 3. Temporary / Contractual Workers WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

More Willing-To-Pay (Household/Ocuupational Information) 1. Bigger Household Size 2. Lower Income (14, 717 vs 17, 561) 3. Owned House vs. Others WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Household Solid Waste Disposal Practices WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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 typecount. Households not willing-to-pay for improved services are disposing their wastes more frequently than those willing-to-pay. WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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. WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Perception and Concern of Households on Solid Waste Collection WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Major National Issues and Households’ Perception 1. Crime 2. Corruption 3. Unemployment 4. Poverty 5. Climate Change 6. Env’l Degradation 7. Problems in Health System 8. SWM Problems 9. Calamity and Disaster 10. Overpopulation WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Major Provincial Issues and Households’ Perception 1. Corruption 2. Solid Waste Management Problems 3. Problems in Provincial Health System 4. Unemployment in the Province 5. Insufficient Safe Water 6. Agricultural Problems 7. Crime in the Province 8. Insufficient Electricity Problems 9. Rebel and Leftist Groups 10. Insufficient Transport Services WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Major Municipal Issues and Households’ Perception 1. 2. 3. 4. 5. 6. 7. 8. 9. Solid Waste Management 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 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Major Municipal Environmental Issues and Households’ Perception 1. 2. 3. 4. 5. 6. 7. 8. 9. Solid Waste Management Problems Land Conversion Agricultural Problems Water Pollution Flooding Air Pollution Climate Change Extinction of Natural Resources Pests WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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. WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Household Perception on Solving SWM Issues 1. 2. 3. 4. 5. 6. 7. 8. 9. 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 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Knowledge Index Rating (KIR) VARIABLE Knowledge Index Rating (mean) Household Type Not Willing-to All Willing-to-Pay (N=240) (n=177) (n=63) 8. 06 7. 86 8. 00 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Willingness-to-Pay of Households to Pay for An Improved Municipal Solid Waste Collection Service WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Bid Prices and WTP Bid Price (in Ph. P) WTP Replies of Households Yes No All 35 (n=60) 43 (71. 67) 17 (28. 33) 60 (100) 60 (n=60) 34 (56. 67) 26 (43. 33) 60 (100) 90 (n=60) 28 (46. 67) 32 (53. 33) 60 (100) 120 (n=60) 10 (16. 67) 50 (83. 33) 60 (100) 115 (47. 92) 125 (52. 08) 240 (100) All (N=240) WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Why Pay? • Not contented with the current SWC service • There is a room for improvement for the SWC service • Important for the health of the household • Increase cleanliness of the municipality • Improve overall proper solid waste management WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Why Not? • Contented with the current service • Does not need to improve service • Household would not allot more of their budget for SWC • It is the local government's responsibility and not of the people • Doesn't have the responsibility over SWM problems • Practice other disposal method/s other than collection WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Preferred Payment Vehicle WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Preferred Payment Vehicle VARIABLE 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 Households Willing-to-Pay (n=115) No. % 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 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Mean Willingness-to-Pay Estimates WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Logistic Regression Results VARIABLES Constant Sex Age Highest Educational Attainment Civil Status Household Size Household Income Volume of Waste Knowledge Index Rating Bid Price COEFFICIENT -4. 33088 -0. 796829 0. 0383104 MEAN COMPUTATION 1 -4. 33088 1. 445833 -1. 15208 54. 35417 2. 08233 0. 207833 0. 420833 0. 087463 2. 27776 0. 075715 -5. 05 E-06 -0. 247424 0. 929167 4. 783333 15463. 25 1. 439167 2. 116419 0. 36217 -0. 07816 -0. 35608 4. 15589 0. 800417 3. 326444 -0. 0289253 76. 25 -2. 20555 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Coefficient Estimation Mean WTP = 1/-0. 0289253 [ln ( 1 + e {-4. 33088 – 0. 796829 (1. 445833) +. . } )] = Ph. P 36. 32 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Turnbull WTP tj 35 60 90 120+ Nj 17 26 32 50 - Tj 60 60 1 Fj* 0. 283 0. 433 0. 533 0. 833 1 fj* 0. 283 0. 15 0. 1 0. 3 0. 167 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Turnbull Mean WTP Estimation Turnbull WTP = Σ tjf*j+1 = 0 (0. 283) + 35 (0. 15) + 60 (0. 1) + 90 (0. 3) + 120 (0. 167) = 0 + 5. 25 + 6 + 27 + 20. 04 = Ph. P 58. 25 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Social Mean Willingness-to-Pay 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 (Ph. P 58. 25) = 0. 497 x 1632 x 58. 25 = Ph. P 47, 246. 808 WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Factors Affecting the Willingness-to-Pay Decisions of Households for An Improved Municipal Solid Waste Collection Service WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

VARIABLE Coefficient Std Error Constant -2. 76268 2. 1829 Sex (male) -0. 954093 0. 322013 Age 0. 0268956 0. 0177502 Highest Educational 0. 00282769 0. 136416 Attainment Civil Status (married) 0. 966634 0. 32048 Household Size 0. 0867375 0. 0861439 Household Income -4. 73133 e-07 7. 86085 e-06 Average Daily Volume of -0. 258361 0. 279432 Wastes Generated Knowledge Index Rating (+) 4. 59232 2. 36017 Bid Price (+) -0. 029944 0. 00517863 Number of observations = 240 Number of cases 'correctly predicted' = 168 (70. 00%) Likelihood ratio test: Chi-square(9) = 63. 1949 [0. 0000] Z -1. 2656 -2. 9629 1. 5152 0. 0207 p-value 0. 20566 0. 00305*** 0. 12971 0. 98346 3. 0162 1. 0069 -0. 0602 -0. 9246 0. 00256*** 0. 31399 0. 95201 0. 35518 1. 9458 0. 05168* -5. 7822 7. 37 e-09*** WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Implications • 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 is being manifested WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Implications • Increase knowledge and community participation • Review of the municipal solid waste services • Reduce political barriers • Stakeholders must collaborate on solving the SWM issues • Law reinforcements WHO SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities