Determining factors influencing the willingness to pay for household waste separation services in District 5, Ho Chi Minh City

Abstract

Domestic solid waste (HSW) management has emerged as a critical environmental challenge in urban areas of Vietnam, particularly in cities like Ho Chi Minh City, where escalating waste volumes and an overreliance on landfills pose threats to sustainability and public health. As HSW levels increase annually, the need for sustainable waste separation practices has become urgent. This study evaluates households’ willingness to pay (WTP) for proposed HSW separation services in District 5, Ho Chi Minh City, and identifies key factors influencing their decision to financially support such services. Utilizing the Contingent Valuation Method (CVM), a widely used approach for estimating the non-market value of public services, we conducted a survey of 100 households to measure their WTP. Logistic regression analysis was applied to explore the impact of various demographic, socioeconomic, and behavioral factors on households' payment decisions. Results show that the average WTP is 31.91 thousand VND per month, with household income, family size, gender, social pressure, awareness of HSW benefits, and the ability to perform HSW separation as significant determinants. Income and awareness of HSW benefits positively influence willingness to pay, while household size, social pressure, and self-separation ability reduce willingness to pay. Based on our results, we propose short- and long-term policy recommendations to improve community acceptance and adoption of HSW separation services. In the short term, policies should focus on educational programs to increase public awareness about the importance of waste separation and financial assistance for low-income households to promote service uptake. In the long term, promoting self-separation practices within residential communities can foster a culture of environmental responsibility, gradually reducing reliance on third-party separation services. This study contributes to the understanding of behavioral and socioeconomic factors in HSW management, providing a foundation for future research and policy development in sustainable waste practices.