ESTIMATING URBAN FARM HOUSEHOLDS' WILLINGNESS TO PAY FOR SUSTAINABLE WASTEWATER MANAGEMENT AND RENEWABLE ENERGY SERVICES IN SOUTHEAST NIGERIA: A CONTINGENT VALUATION APPROACH

Abstract

The study evaluated urban farm households' willingness to pay (WTP) for sustainable wastewater management and renewable energy services in Southeast Nigeria. It focused on urban farm households in five states within the region. A multi-stage random sampling technique was used to select 600 households, and data collection was conducted through face-to-face structured interviews using a pre-tested questionnaire. The Contingent Valuation Method (CVM) was employed to estimate households' WTP for government-proposed wastewater treatment, renewable energy production, and public health monitoring services. The hypothetical scenario presented a government-led initiative that would treat wastewater for irrigation, produce biogas for energy, generate bio-based fertilizers, and implement public health monitoring through wastewater-based epidemiology (WBE). Findings revealed that, in terms of willingness to pay, 36.83% of urban farm households were willing to pay for sustainable wastewater management and renewable energy services, while 80% expressed unwillingness. (Note: These figures seem inconsistent and may require clarification; see below.) Regarding the maximum amount households were willing to pay, the majority (23.98%) indicated a willingness to pay between ₦12,001 and ₦15,000, followed by 19.46% who were willing to pay between ₦3,001 and ₦6,000. The Tobit regression model identified significant socio-economic determinants of WTP. Variables such as gender, age, marital status, household size, years of schooling, and access to credit significantly influenced the amount households were willing to pay for these services. Additionally, results from the multivariate probit regression model showed that access to credit, market distance, awareness of sustainable practices, and off-farm income were key factors influencing households' choices among the proposed services. Specifically, access to credit significantly increased the likelihood of choosing wastewater treatment but decreased the probability of adopting bio-based fertilizers. Awareness of sustainable practices had contrasting effects—positively influencing fertilizer adoption while reducing the likelihood of adopting bioenergy and wastewater services. Furthermore, land tenure insecurity consistently reduced the probability of adoption across all service types. These findings underscore the multidimensional factors shaping household behavior and highlight the need for integrated policy approaches. Based on the results, it is recommended that the Federal Government of Nigeria collaborate with financial institutions to improve access to affordable credit facilities for urban farm households.