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Background: The ecosystem has been deteriorating due to the discharge of increasing amounts of liquid waste into rivers, lakes and canals in the world. In Ethiopia, the impairment of water quality of Lake Tana and Blue Nile River has been going on due to discharge of liquid wastes from Bahir Dar city. This significantly affected the potential ecosystem services. However, no effective measures were also taken yet. In such environmental crisis, valuation could play an important role in informing decision makers to take actions on liquid waste management for the conservation of ecosystem services. No economic valuation of ecosystem services provided by liquid waste management study in Bahir Dar and Ethiopia at large.
Objective: The main objective of this study was to estimate the economic value of ecosystem services provided by liquid waste management in Bahir Dar.
Methods: A community based cross-sectional research design was employed at Bahir Dar city in July 2018. Multi-stage sampling technique was used to select the final 132 respondent households. Choice card sets were developed by using Ngene software to collect the data by trained data collectors and supervisors. The actual data collection and choice experiment were held after the pre-test of choice sets. The collected data were analyzed by using the LIMDEP 8 NLOGIT 3 software after checking and cleaning. Finally, multinomial logit and random parameter logit models were employed to estimate the economic value of ecosystem services provided by liquid waste management.
Result: A total of 132 respondents (52 % of them were females) gave complete responses to the choice experiment. Except tourism, the three attributes of ecosystem services (fishing, human health and energy) are positive and significant (which is less than p=0.01) in both multinomial logit and random parameter logit models which indicates an improvement in any single attribute increases the probability of choosing improved plan for liquid waste management. On average, respondent households value the human
health risk reduction benefit, the improvement of fishing and energy and electric power generation opportunities obtained from improved liquid waste management at ETB 723, 357 and 347 per annum respectively. The overall annual economic value of the ecosystem services provided by liquid waste management in and around Bahir Dar for high improvement plan is ETB
153,035,520.00 per year.
Conclusion and recommendation: The result showed that households gave high value for the liquid waste management improvement plan that would improve ecosystem service attributes in and around Bahir Dar City. They are willing to pay ETB 2,112 per year for high impact improvement plan. Thus, decision makers and Bahir Dar city administration bodies need to design a project for the construction of municipal treatment plant in Bahir D |
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