Estimation of willingness to pay for wastewater treatment service improvement in Malaysia

Chandramalar Munusami, Jamal Othman, Shaharuddin Mohamad Ismail, Chamhuri Siwar

Research output: Contribution to journalArticle

Abstract

As populations increase by leaps and bounds, it places more pressure on the environment and threatening sources of fresh water supplies, it was recognized that the problem of wastewater needed proper management in Malaysia. This study is undertaken to assist the relevant governmental bodies and service providers to identify an improved wastewater management strategy from the consumer perspectives. This paper applies a structural equation model (SEM) to analyze willingness to pay for wastewater treatment services improvement, based on a cross-sectional dataset of 600 randomly selected urban households in Shah Alam, Bangi, Kajang and Banting areas. The study applies focus group discussions, variables such as environmental awareness (green product), household attitude (water consumption), perceptions (sewerage and wastewater treatment services) and service improvements (willingness to pay) were identified. The main results indicate that environmental awareness, household attitude and perceptions on sewerage services have a positive influence on the service improvements. Households attitude on sewerage and wastewater treatment services are the main determinants of willingness to pay and strongly interact (87 percent) with sewerage service improvement. In conclusion, the methodology applied to measure the household attitudes provides valuable information to policy makers regarding main factors that improve wastewater treatment service efficiency.

Original languageEnglish
Pages (from-to)365-374
Number of pages10
JournalInternational Journal of Business and Society
Volume17
Issue number2
Publication statusPublished - 1 Aug 2016

Fingerprint

Willingness-to-pay
Wastewater treatment
Malaysia
Household
Service improvement
Environmental awareness
Waste water
Green product
Factors
Politicians
Management strategy
Focus group discussion
Service provider
Methodology
Water consumption
Water supply
Structural equation model

Keywords

  • Structural equation model
  • Wastewater
  • Willingness-to-pay

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance
  • Strategy and Management
  • Business and International Management

Cite this

Estimation of willingness to pay for wastewater treatment service improvement in Malaysia. / Munusami, Chandramalar; Othman, Jamal; Mohamad Ismail, Shaharuddin; Siwar, Chamhuri.

In: International Journal of Business and Society, Vol. 17, No. 2, 01.08.2016, p. 365-374.

Research output: Contribution to journalArticle

Munusami, Chandramalar ; Othman, Jamal ; Mohamad Ismail, Shaharuddin ; Siwar, Chamhuri. / Estimation of willingness to pay for wastewater treatment service improvement in Malaysia. In: International Journal of Business and Society. 2016 ; Vol. 17, No. 2. pp. 365-374.
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