What are Factors Contributing to Public Willingness to Pay for an Improved Waste Management

By Muhammad Subhan & Ahmad Bashawir

(This article that has been published in the journal of economics, Univ. 11 Maret Indonesia)

INTRODUCTION

Among the most significant effect on the natural decline in many cities is about air and water pollution, loud noise, traffic crowding, smog, flash flooding, and waste pollution (Sham Sani 1990). Municipal waste problem is the main issues or a frequently discussed issue that may not end there. This is due waste will continuously exist as a result of the activity of human life. Waste generations have a closely relation with production and consumption activities. When the process of production and consumption activity is still running, the waste generation will continue to exist.

Individual produces waste in the event of his life whether either in many or small quantity. In the United States, as reported by Environmental Protection Agency (2007), the amount of waste produced by urban communities in the United States increased almost threefold in the last three decades, i.e. 254 million tons recorded in the year 2007 compared to 88 million tons in 1960. In the meantime, the industries manufacture thousands of new products each year that ultimately become urban waste creating more complex problems of handling and disposal.

The main problem is that whether the current waste management involved all parties such as the government, private sector, and also the community (household) as a single entity that can not be separated as mentioned in a study by Ridwan Lubis (1994) which states that community should be involved in waste management and get their support entirely. The community support can be seen from their awareness in the process keeping the environment clean. This is also in accordance with the study by Jamaluddin Jahi (1993) which concluded that environmental management may not be successful if the cooperation (with community and private sector) does not exist. Community preference is part of the supervision system in the environmental issue.
However, an integrated management should be implemented, taking into account household attitude as the major urban waste generator and the management must be able to recognize household attitudes and demand towards this issue. The final goal that wants to be achieved here is that the waste generation from the household side can be minimized to the most minimum level, if it is impossible to eliminate them entirely.

This study attempted to look at and identify the community (household) willingness to pay in the waste management problems and if the management initiate to enhance the services. Contingent valuation method (CV) is used in assessing WTP of the community.
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