Factors Affecting Households’ Willingness to Pay for Improved Wastewater Services in Ho Chi Minh City, Vietnam

Abstract

In order to establish infrastructure relating to domestic wastewater collection and treatment according to the Sewerage Master Plan, Ho Chi Minh City, Vietnam, is in need of large capital investment. The increase in contribution from users is one of the prerequisites for ensuring financial sustainability; however, it is essential to investigate and understand the users’ preferences and willingness-to-pay (WTP). The study aims to investigate factors affecting respondent’s WTP a premium for improved wastewater services in Ho Chi Minh City. Double-bounded questions for the contingent valuation method were used for analysis, based on the interview data collected randomly from 431 households in 2017. The study, which applied Logit model, found, in regression results, that bid level, a respondent opinion of 10% of environmental protection fee for wastewater that is currently applied, respondent knowledge on operated wastewater treatment plants in city, prior information on the plans of wastewater treatment plants, marital status, and first and second choice variables were associated with respondents’ WTP for the improved sewerage services. However, according to the single-bounded model, water payment, gender, household income, and house ownership played a role in households’ WTP.