Marketing of Solid Waste Management Services in Tingloy, the Philippines
A study on affordability and willingness to pay
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UWEP Working Document 9
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Copyrights
The research for this publication received financing from the Netherlands Development Assistance (NEDA), Ministry of Foreign Affairs. Citation is encouraged. Short excerpts may be translated and/or reproduced without prior permission, on the condition that the source is indicated. For translation/and or reproduction in whole, WASTE should be notified in advance. This publication does not constitute an endorsement by WASTE or the financier.
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PREFACE
It is vividly illustrated in literature and implemented in projects all over the world that an impressive range of initiatives and actions within cities in Third World countries, together with partners in international support programmes, have been improving the practice of environmental and solid waste management. This, however, stands in contrast with the one factor that allows waste problems to steadily magnify, namely one=s attitude, perhaps reluctance, towards waste. Without changing one's behaviour towards waste oneself creates, it will be genuinely impossible to combat the solid waste problem in the near future.
With this in mind a marketing study was conducted, the results of which are presented in this working document. Based on a developed methodology for measuring the demand for solid waste services and, compatible herewith, the determination of voluntary solid waste fees, a participatory demand assessment and a questionnaire were implemented in Tingloy, the Philippines. Using the methodology, it was aimed at identifying the most preferred solid waste management alternative for the island. By working closely with the official bodies in Tingloy, interest and support for a community based solid waste system were gained. On that basis the survey could find its way to the residents of Tingloy. In the end, the survey accomplished an awareness raising among the population of the island's urban area and contributed to a better insight in the needs, preferences and socio-economic situation of the residents.
Yet, the questionnaire could never have taken place without the overwhelming assistance and guidance of a number of people. Above all I would like to address words of appreciation to Melchor S. Palmares (local coordinator for the UWEP pilot projects in Batangas Bay) and to Dominador H. Manguiat (Batangas Social Development Foundation project coordinator) for their help and warm teamwork during the study. Moreover, I would like to acknowledge the support of Christopher C. Ancheta (local sanitation engineering consultant) and Danilo G. Lapid (UWEP regional coordinator for South east Asia) for the profound insights in technical and social aspects of solid waste management. I also warmly appreciate the support of BBDP Officer-in-charge Cora Abansi and ENR Officer Evelyn C. Estigoy (managing director PG-ENRO) for her approval of my stay at ENRO. I am more than grateful for their contributions and support, which made my stay in the Philippines unforgettable. The six weeks study was more than just a research to me. Furthermore, a warmhearted recognition must go to Marlow and Janet Ner. They looked after me with great care during my presence in Batangas City.
In addition, words of appreciation go to Anne-Lies Risseeuw and Annette van der Heijden of WASTE for their efforts in making this working document readable. Moreover, I very much appreciate the critical notes from Wim Pelupessy, Development Research Institute at Tilburg University, without which this document would not have been so profound. Finally, and equally important are the contributions and comments from Maria Muller, senior sociologist at WASTE and Lex Hemelaar, environmental economist at WASTE. They have not only guided the process of writing this document, they have supplied me with insights and knowledge that can only come from personal experience. It is their input that gives this working document its added value.
And, finally, I dedicate this working document to the population of Tingloy. Their frankness and hospitality changed, once again, my view of life. Hopefully the results of this study will support the endeavour of building a new solid waste management system on this island.
Rogier Marchand
September, 1998
CHAPTER 1
CHAPTER 2
RESEARCH METHODOLOGY FOR THE MARKETING OF SOLIDWASTE SERVICES
CHAPTER 3
THE RESULTS OF THE MARKETING SURVEY IN TINGLOY 32
ABBREVIATIONS
ATP Affordability To Pay
BBDP Batangas Bay Development Project
BBR Batangas Bay Region
BSDF Batangas Social Development Foundation
CBOs Community Based Organisations
CV Contingent Valuation
CVM Contingent Valuation Method
EPA Environmental Protection Agency
GEF Global Environmental Facility
IMO International Maritime Organisation
IRA Internal Revenue Allotment
ISWM Integrated Sustainable Waste Management
kg/cap/day Kilogram per capita per day
kg/hh/day Kilogram per household per day
kg/m3 Kilogram per cubic metre
LGU Local Government Unit
MSWM Municipal Solid Waste Management
NGOs Non-Governmental Organisations
NSO National Statistics Office
OECD Organization for Economic Cooperation and Development
P Philippine Peso; P43 for 1 US$ (August/September 1998)
PG-ENRO Provincial Government-Environment and Natural Resources Office
PPS Pilot Project Settings, which equal the four pilot project areas in the UWEP
programme; the others are in Bangalore - India, La Ceiba - Honduras, Bamako -
Mali
SWM Solid Waste Management
UNCHS United Nations Centre for Human Settlements
UNDP United Nations Development Programme
UWEP Urban Waste Expertise Programme
WB World Bank
WTP Willingness to Pay
For amounts stated in pesos, the exchange rate equals P43 for 1 US$ (August/September 1998)
LIST OF TABLES
Table 1 The willingness and affordability to pay: a theoretical classification 21
Table 2 Classification of the number of interviews per barangay 40
Table 3 The current level of residents segregating at source 43
Table 4 Respondents= willingness to subscribe to the solid waste system by price of service 44
Table 5 Average monthly expenditures for each barangay 45
Table 6 Average monthly income for each barangay . . . . 46
Table 7 Required sample sizes for various sampling errors at 95% confidence level 59
Table 8 Required sample sizes for various sampling errors with N=400 at 95% confidence
level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Table 9 Data recording for supplemental data. . . . . . . . . 63
Table 10 Research methods for different valuation question formats 64
Table 11 Data recording for willingness to pay for a specific service option 65
Table 12 Expenditures on the daily food products and monthly electricity and water bill
per barangay . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 71
Table 13 Average daily/monthly expenditures for the poblacion 72
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