Determinants of Improved Waste Management Services in Delhi: An Economic Valuation

Abstract

Emerging nations such as India, with fast pace of development and rapid urbanisation, are increasingly witnessing a problem of solid waste mismanagement because of rising population and industrialisation. Factors associated with this advancement put pressure on the current municipal infrastructures, services and financial resources. This study employs cross-sectional survey analysis across eleven districts of Delhi to determine inhabitant’s willingness to pay (WTP) for improved waste management services and also suggests measures to control this menace. One sample city from each district is chosen and a contingent valuation methodology is used to estimate WTP. Economic valuation of the benefits derived from cleaner environment is done through stratified random sampling technique from each sample city. The survey has been administered among 450 respondents of Delhi. The sample cities chosen for the project are “Amar Colony (South-East Delhi), Janakpuri (West Delhi), Rohini (North-West Delhi), Kamla Nagar/Model town (North Delhi), Saket (South Delhi), Darya Ganj (Central Delhi), Yamuna Vihar (North-East Delhi), Satya Niketan (South-West Delhi), Karkardooma (East Delhi), Vasant Vihar (New Delhi) and Shahdara.” The respondents in the survey are divided into three categories, Households, Recognised Branded Vendors and Unbranded Vendors, representing the commercial faction of society.A binary response question followed by an open ended question have been put forward to the respondents in order to measure their WTP The administered survey shows that 81% of respondents have positive WTP for improved solid waste management (SWM) services. Logistic and multiple regression models are used to estimate the WTP. As per the regression analysis, the mean WTP for entire Delhi region came out to be approx ₹155/month. Of which WTP for the branded Vendors is ₹311/month, WTP of Household is ₹114/month and WTP for unbranded Vendors is ₹39/month. The key determinants of WTP are income level, education level, perception of the surveyed area’s environment quality, dissatisfaction from current SWM services and past disease trajectory, contracted from poor solid waste management. The respondents with higher levels of income and education show higher WTP. However, there is a negative relationship of dissatisfaction level and serious disease history with WTP. The per capita waste generation for different regions of Delhi has been calculated with a maximum generation of 0.507Kgper person in the MCD zone.A rank has been assigned to each city on the basis of perception of the respondents on three grounds: Environmental Quality, Satisfaction with current solid waste management and Prior Disease History Trajectory. The top five cities which need immediate attention are Darya Ganj, Yamuna Vihar, Satya Niketan, KarKardooma and Shahdara. The findings from this study can aid policy-makers in formulating the solid waste management measures in Delhi as well as in other regions facing similar problems.