The Case of Urbanizing Municipalities LEVI GUILLERMO LIMA GEGANZO - - PowerPoint PPT Presentation

51st Annual Philippine Economic Society Meeting. Intercontinental Manila. LEVI GUILLERMO LIMA GEGANZO University of the Philippines Visayas Miag-ao, Iloilo, Philippines 5023

The Case of Urbanizing Municipalities

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

Solid W Waste Management Schemes

Reduce

Recycle

Refuse

Reuse

Recover

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

Develop

• ped

ed S SWM S Strategi egies es Us Using g 5Rs

• bag fees / eco-bag
• plastic ban
• penalties for littering and other fines
• incentive programs
• solid waste collection fee

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

Solid W Waste Management Criteri ria

• 1. Waste Segregation at Source
• 2. Material Recovery Facility
• 3. Type of MSW Disposal (Controlled or Open)
• 4. Safe Closure Plan
• 5. Sanitary Landfill
• 6. Presence of Municipal SWM Plans

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

Typ ypes o

• f Municipal S

SWM P 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 SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Statu tus of S SWM i in Iloilo P Province ce

81.4 18.6

Waste Segregation at Source

Yes No

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

Status of SWM in Iloilo Province

86.04651163 13.95348837

Presence of Material Recovery Facilities

Yes No

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

Status of SWM in Iloilo Province

51.1627907 48.8372093

Type of Garbage Disposal

Controlled Open

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

Status of SWM in Iloilo Province

69.76744186 30.23255814

Safe Closure Plan

Yes No

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

Status of SWM in Iloilo Province

37.20930233 62.79069767

Presence of Sanitary Landfill

Controlled Open

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

Ra Rationale le of

• f the

e St 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 SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

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

Photo Courtesy of 365greatpinoystuff.wordpress.com and digitalphotographer.com.ph

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

Ra Rationale le of

• f the

e St Study

• 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

• bserved.

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

Ra Rationale le of

• f the

e St Study

increasing volume of solid waste ≠ municipal solid waste management services

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

• Brgy. Tugara-ao,

Miag-ao, Iloilo GENERATION COLLECTION

TRANSPORTATION

MATERIAL RECOVERY & PROPER WASTE DISPOSAL CONSUMPTION Households Office of General Municipal Services Dump Trucks

SOLID WASTE MANAGEMENT PROCESSES

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

Municipal Proposed Budget for Solid Waste Management Programs (2011) Actual Collected Revenue for Solid Waste Management Programs (2010) Shortage in Budget for Municipal Solid Waste Management Programs

PHP 600,000.00 PHP 441,920.00 PHP 158,080.00

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

Ra Rationale le of

• f the

e St 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 SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Si Signif ific icance e of

• f the

e St Study

• For legislative purposes
• For early sustainable development plans of urbanizing municipalities

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

Obje jective o

• f t

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

Li Limitati tions o

• f th

the Stu tudy

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

Theor eoretical F Framewor

• rk
• 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 SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Theor eoretical F Framewor

• rk
• 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

• f a non-market priced good.
• In order to monetize the cost of the non-market priced good, non-

market valuation methods are being used.

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

Theor eoretical F Framewor

• rk

Contingent Valuation Method and Willingess-to-Pay

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

Derivati tion of W Willingness-To To-Pa 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 SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Estima mation o

• f MW

MWTP

Coefficient Estimation Mean maximum WTP = 1/β1 [ln (1+ e α0 + β2 Q + Σ βi Si)] Where,

β0 and β1 are absolute coefficient estimates from the logistic regression

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

Estima mation o

• f MW

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 f*

j = Turnbull estimate of N* j / T* j.

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

Empirical M Model

WTP = F(x1, x2, x3,…,x9)

Where,

X1 = sex X2 = age X3 = highest educational attainment X4 = civil status X5 = household size X6 = household’s total monthly income X7 = average daily volume of waste generated X8 = level of knowledge of household in proper solid waste management X9 = bid price

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

Regressi sion Binar ary L Logisti tic c 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 SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Barangay Household Population Number of Households Baybay Norte 2,434 288 Baybay Sur 1,108 240 Bolho 519 87 Mat-y 2,190 112 Sapa 575 362 Tacas 1,033 183 Ubos Ilawod 955 181 Ubos Ilaya 909 179 TOTAL 9,723 1,632

Population and Number of Households by Barangays in Miag-ao Town Proper

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

Barangay Household Population Number of Households Baybay Norte 2,434 288 Baybay Sur 1,108 240 Bolho 519 87 Mat-y 2,190 112 Sapa 575 362 Tacas 1,033 183 Ubos Ilawod 955 181 Ubos Ilaya 909 179 TOTAL 9,723 1,632

Population and Number of Households by Barangays in Miag-ao Town Proper

WHO SHOULD 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 No. (N=240) % Willing-To-Pay 177 73.75 Not Willing-To-Pay 63 26.25

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

Socio-Demographic and Economic Profile

• f Households

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

• 1. Males
• 2. Older people
• 3. Married individuals
• 4. College and High School Graduates

Mo More W Willing-To To-Pay y (Soci cio-De Demographics a and Ed Education)

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

• 1. Government Employees
• 2. Monthly Income: 3,542 vs 3,622
• 3. Temporary / Contractual Workers

Mo More W Willing-To To-Pay y (Occu Occupation)

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

• 1. Bigger Household Size
• 2. Lower Income (14,717 vs 17,561)
• 3. Owned House vs. Others

Mo More W Willing-To To-Pa Pay (Hou Househ ehol

• ld/Ocuu

uupa pationa nal Infor

• rmation
• n)

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

Household Solid Waste Disposal Practices

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

Households with more wastes (all types, except yard wastes) are not willing-to-pay for improved services, in terms of volume and type- count. Households not willing-to-pay for improved services are disposing their wastes more frequently than those willing-to-pay.

Mo More W Willing-To To-Pay (Solid W Waste Disposal Pract actice ces) s)

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

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.

Mo More W Willing-To To-Pay (Solid W Waste Disposal Pract actice ces) s)

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

Perception and Concern of Households on Solid Waste Collection

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

Major Na Nation

• nal I

Issues es and Hou Househ eholds’ Pe 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 SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Major P Provincial Issues a and Households’ Pe 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 SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities

Major M Municipal Issues a and H Households’ Pe Perception

• 1. Solid Waste Management Problems
• 2. Problems in the Health System
• 3. Crime in the Municipality
• 4. Corruption in the Local Government
• 5. Agricultural Problems
• 6. Insufficient Electricity Problems
• 7. Insufficient Safe Water
• 8. Effects of Climate Change
• 9. Unemployment in the Municipality

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

Major M r Municipal Environmental I Issues and Ho Househ ehol

• lds’ P

Percep eption

• n
• 1. Solid Waste Management Problems
• 2. Land Conversion
• 3. Agricultural Problems
• 4. Water Pollution
• 5. Flooding
• 6. Air Pollution
• 7. Climate Change
• 8. Extinction of Natural Resources
• 9. Pests

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

Level o

• f C

Con

• ncer

ern on E Environ

• nmen

ental Prot

• tec

ection

• n

Households are very concerned in protecting the environment. Households perceived that SWM is a major issue in the municipality.

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

Ho Househ ehol

• ld P

Percep eption

• n o
• n Solving

g SWM Issues es

• 1. Improvement of solid waste collection
• 2. Proper segregation of wastes
• 3. Regular home cleanup
• 4. Regular barangay cleanup
• 5. Improvement of MRFs
• 6. Unclogging of Wastes in Drainages and Waterways
• 7. Improvement of Recycling
• 8. Teaching proper SWM
• 9. Limiting of Plastic Usage

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

VARIABLE Household Type All (N=240) Willing-to-Pay (n=177) Not Willing- to-Pay (n=63)

Knowledge Index Rating (mean) 8.06 7.86 8.00

Kno nowledge Index Rating ng ( (KIR)

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

Bid Price (in PhP) 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) All (N=240) 115 (47.92) 125 (52.08) 240 (100)

Bid P Prices a and WTP

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

• 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

Why P y Pay? y?

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

• 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

Why Not Not?

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

Preferred Payment Vehicle

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

VARIABLE Households Willing-to-Pay (n=115) No. %

Duration of Payment Monthly Every Collection 84 31 73.04 26.96 Payment Mode Collection Tickets Pay-As-You-Throw 95 20 82.61 17.39 Payment Basis Flat Rate Dependent on Quantity of Containers Dependent on Weight of Wastes 83 20 12 72.17 17.39 10.43 To Whom To Pay Barangay Collector Municipality 93 15 7 80.87 13.04 6.09

Prefer erred ed Paymen ent V Vehicle

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

Mean Willingness-to-Pay Estimates

WHO SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities VARIABLES COEFFICIENT MEAN COMPUTATION Constant

• 4.33088

1

• 4.33088

Sex

• 0.796829

1.445833

• 1.15208

Age 0.0383104 54.35417 2.08233 Highest Educational Attainment 0.207833 0.420833 0.087463 Civil Status 2.27776 0.929167 2.116419 Household Size 0.075715 4.783333 0.36217 Household Income

• 5.05E-06

15463.25

• 0.07816

Volume of Waste

• 0.247424

1.439167

• 0.35608

Knowledge Index Rating 4.15589 0.800417 3.326444 Bid Price

• 0.0289253

76.25

• 2.20555

Lo Logistic R c Regression Results ts

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

Coefficient t Esti timati tion

Mean WTP = 1/-0.0289253 [ln ( 1 + e {-4.33088 – 0.796829 (1.445833) + ..} )] = PhP 36.32

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

Turn rnbull WTP

tj Nj Tj Fj* fj* 35 17 60 0.283 0.283 60 26 60 0.433 0.15 90 32 60 0.533 0.1 120 50 60 0.833 0.3 120+

• 1

1 0.167

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

Turn rnbull Mean W WTP Es 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 = PhP 58.25

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

Social Mean W Willingness-to-Pa 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 (PhP 58.25) = 0.497 x 1632 x 58.25 = PhP 47, 246.808

WHO SHOULD 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 SHOULD SHOULDER THE COST ON SOLID WASTE MANAGEMENT? The Case of Urbanizing Municipalities VARIABLE Coefficient Std Error Z p-value Constant

• 2.76268

2.1829

• 1.2656

0.20566 Sex (male)

• 0.954093

0.322013

• 2.9629

0.00305*** Age 0.0268956 0.0177502 1.5152 0.12971 Highest Educational Attainment 0.00282769 0.136416 0.0207 0.98346 Civil Status (married) 0.966634 0.32048 3.0162 0.00256*** Household Size 0.0867375 0.0861439 1.0069 0.31399 Household Income

• 4.73133e-

07 7.86085e-06

• 0.0602

0.95201 Average Daily Volume of Wastes Generated

• 0.258361

0.279432

• 0.9246

0.35518 Knowledge Index Rating (+) 4.59232 2.36017 1.9458 0.05168* Bid Price (+)

• 0.029944

0.00517863

• 5.7822 7.37e-09***

Number of observations = 240 Number of cases 'correctly predicted' = 168 (70.00%) Likelihood ratio test: Chi-square(9) = 63.1949 [0.0000]

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

Implicati tions

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

Implicati tions

• 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