Society of African Journal Editors

Journal of African Economy

Using a Contingent Valuation Approach for Improved Solid Waste Management Facility: Evidence from Enugu State, Nigeria

Authors: William M. Fonta, H. Eme Ichoku, Kanayo K. Ogujiuba, Jude O. Chukwu

Journal: Journal of African Economy

For most public projects, especially environmental projects that are partly funded by multilateral donor agencies, cost–benefit analysis has become a routine procedure for the approval of project funds. These agencies are very keen to know whether the target community or country possesses the aggregate willingness to pay for the project. The two most commonly applied techniques for such analysis are stated preference and behavioural techniques. In this study, we employ the contingent valuation method (CVM), the most widely applicable of the stated preference methods, to establish empirical grounds for pricing the services of a new solid waste management (SWM) improvement facility in Enugu State, Nigeria, initiated by the UK Department for International Development, the State's Environmental Protection Agency, and State and Local Government Programme. We find that CVM can be fruitfully used to support the design and implementation of new SWM facilities and that analysis of the valuation function can give qualitative information that is difficult to identify using baseline surveys or most conventional economic valuation techniques.