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Research article2011Peer reviewedOpen access

Economic Valuation of Private Sector Waste Management Services

Ezebilo, Eugene Ejike; Animasaun, D Emmanuel


This paper reports a study regarding households’ willingness to pay for private sector solid waste management services. The data originated from a contingent valuation survey conducted in 224 households in Ilorin in southwest Nigeria and was analysed using tobit and censored least absolute deviations models. The use of a robust and consistent estimator to model zero willingness to pay responses was discussed. The results show that the respondents were willing to pay more than one percent of their household income per year. Their willingness to pay amount was influenced by income, education, activities of sanitary inspectors, house type and occupation. The censored least absolute deviations model outperformed the tobit model. We suggest that government agencies should be actively involved in monitoring activities of private firms regarding provision of waste management services. The findings from this study can help policy-makers in designing a more sustainable waste management strategy in southwest Nigeria, as well as in other developing countries


Environmental quality; Local participation; Sustainability; Tobit model; Willingness to pay

Published in

Journal of Sustainable Development
2011, Volume: 4, number: 4, pages: 38-46
Publisher: Canadian Center of Science and Education

    UKÄ Subject classification

    Economics and Business
    Social Sciences
    Environmental Sciences related to Agriculture and Land-use

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