Abstract:
Lack of proper infrastructure provision is a major issue in any developing nation. Ethiopia is
one of the African developing nations that lacks infrastructure. As we can see from the situation
in Ambo, practically little sanitation service is currently provided. In doing so, the government
has declared that the enhancement of sanitation services is necessary to meet the policy of
expanding But information on people's preferences and WTP for the proposed sewer connection
is required in order to generate biogas and sanitation service system. The objectives of this study
are to identify household demand for improved sanitation, factors affecting households’
willingness to pay (WTP), amount they are willing to pay and estimate liquid waste service. By
offering data on household participation and product demand, this project seeks to close the gap
between the usage of biogas and better sanitation services. The goal of the current study is to
identify the factors that affect households' willingness to pay (WTP), the degree to which they are
willing to pay, and the overall demand for improved sanitation services and sewer connections
in order to produce biogas. The random sample approach was used with primary personal
questioner of household data . A sampling approach was employed muli-stage by clustering yhe
two kebels in Ambo twon to choose 152 subjects for the study.. In order to determine the mean
WTP and pinpoint the variables influencing households' WTP choices, the binary probit model
was employed. According to the findings, households' monthly WTP average is estimated to be
Birr 42.02. The results of the probit model also showed that factors such as respondent
occupation, sex of the household, marital status, willingness to pay, sanitation service, and home
type were statistically significant in influencing households' decisions to pay. The Tobit model
was utilized to investigate factors that determine a household's WTP quantity of money. The
maximum amount to pay (MWTP) was found to be significantly explained by a number of
variables, including the age of the respondent, family size, educational attainment, maximum
income, and willingness to pay of families .The desire for better sanitation services and its
determinants show the factor affect WTP and the mean of total revenue amount was 42.02 birr to
pay in the study appropriate for future environmental protection. The supply side of the
investigation is not extensively explored in future study employ such types of statement taken to
study and fall of deforestation in production of biogas for fuel.
