Why Should Different City Characteristics Customize the Rate of Pollution Charge? Evidence of Factors Affecting Willingness-to-pay for Wastewater Management in Thailand

Abstract

A challenge for wastewater management is enhancing the efficiency of resource allocation. Polluter Pays Principle is a wastewater charge collection approach that could help support the financial burden faced by many countries. Tailor-made policy implementation based on city characteristics is critical to the success of implementing a national policy to fit well in different local contexts. This study examined gaps for improving municipal wastewater management systems in Thailand through in-depth interviews and a questionnaire survey to identify the factors influencing households’ perception and willingness to pay in three different cities. A contingent variation method technique was used to evaluate the preferences of residents. The study revealed that different cities have different factors that influence willingness-to-pay decisions as well as pay-out levels. A single common factor positively affecting willingness-to-pay preference in all three cities is perception and engagement of wastewater treatment service. Citizens with a positive perception of receiving wastewater service are not only more likely to pay the wastewater charge, but also at a higher amount.

Keywords

• City characteristics
• Rural city
• Tourism city
• Urbanized city
• Tailored-wastewater management
• Willingness to pay (WTP)