Bai Hoan Chinh Kinh Te Moi Truong

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    SUMMARY

    ( Group 6)

    1. INTRODUCTION

    1.1. Background

    Economic of the world is developing, environmental problem becomes increasingly

    serious and it is the top concern of many countries.

    Lying in the focus economic region in the South, Thu Dau Mot city is interested in

    the improvement of environmental quality, social life and welfare. In which outstanding

    issue is domestic, industrial and hospital wastewter.

    A survey of 400 households in Thu Dau Mot town where separate systerms are being

    developed under the assistance of JICA has been conducted. This report persent the

    results from this households survey conducts in Thu Dau Mot on their environmental

    attitudes and the willing to pay to cnnect the households to the wastewater system.

    1.2. Overview of Binh Duong province

    Binh Duong province borders with Binh Phuoc province, Tay Ninh province, Dong

    Nai province and Ho Chi Minh city.

    The GDP growth rate in Binh Duong reached 15.32% per annum during 2001-2008,

    one of the provinces with the highest GDP growth in Viet Nam.

    In 2007, the master-plan on scio-economic development of Binh Duong peovince up

    to 2020 was approved by the government. Environmental protection was also addressed

    in the master-plan. The general viewpoint is that economic growth must be associated

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    witth social development and environmental protection, striving for the target of

    preventing and minimizing environmental pollution.

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    1.3. Overview of Thu Dau Mot town.

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    Thu Dau Mot, capital city of Binh Duong province, includes 9 wards and 3

    communes.

    Thu Dau Mot city lies in the focus economic region in the south. During recent years,

    Thu Dau Mot maintains the GDP growth rate of 20-22% (15.3% for whole Binh Duong

    province and 6-7% for whole Viet Nam)

    1.4. Overview of the domestic wastewater drainage project in Thu Dau Mot.

    The project in Thu Dau Mot is planned that from May to Sep 2010. The PMU will

    call for bid and select the contractee for project implementation. The project will include

    4 phases. As a plan, it is expected that around 30-40% of households will be connected to

    the domestic wastewater system in Thu Dau Mot by 2020.

    1.5. Objective of the study.

    Overall objective:

    - To assess the household willingness to pay to connect to the sewerage system

    and socio-economic characteristics which may explain the extent of the

    willingness to pay

    Specific objectives:

    - To describe the socio-economic characteristics of the survey households and

    respondents

    - To investigate the respondents perceptions and attitudes on environmental

    issues in Thu Dau Mot town characteristics

    - To assess the household willingness tp pay to connect to the sewerage systemin Thu Dau Mot town

    - To determine the factors or socio-economic characteristics which may explain

    the willingness to pay of the survey households

    2. METHODOLOGY:

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    1.1. Pr imary data col lection methods.

    5 investigators through survey of TDM town have obtained the primary data .

    Specific appendix 1: survey template

    1.2. Secondary data coll ection methods

    5 investigators with the help of local leaders through survey of TDM town have

    obtained the secondary data .The data is statistical through the tables and figures in this

    article.

    1.3. M ethods of investigation

    1.3.1. Basic investigation

    Investigation factors affecting the household WTP through descriptive analysis

    such as Gender, Educational level of respondents, Occupation of respondents and WTP,

    Age of respondents and WTP, Household population and WTP

    1.3.2. Methods of sociological investigation

    To investigate the respondents perceptions and attitudes on environmental issues in Thu

    Dau Mot town characteristics and assess the household willingness to pay to connect to

    the sewerage system in Thu Dau Mot town; At first, some questions on general issues on

    economic development were designed to get their attitudes, and then the specific

    questions on environmental issues were proposed for the respondents.

    1.3.3. Anket methods

    Answer the questionnaire on paper with two types of questions (open and closed)Specific appendix 1: survey template.

    The sample strategy to ensure the representatives of 400 selected households in 6

    targeted wards in Thu Dau Mot was developed. 207 households were interviewed with

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    closed-ended questionnaire while 194 households were interviewed with payment card

    questions

    1.4. The data was processed by Excel softwar e .

    The local leader designed the excel sheets for data entry: one with closed-ended

    questionnaire and one with payment card questionnaire. After the survey, each

    enumerator clarified the valid households and made the data entry following the guidance

    from local leader. All data from 401 valid households were checked and entered into

    computer. The data was transferred to SPSS for analysis.

    1.5. Coll ecting secondary data Rapid Rural Assessment (PRA) methods

    Improve the quality of the environment for the people in the TDM town

    2. Analytical methods.

    The article used two analysis regression and descriptive to identify the factors

    affecting the household WTP.

    The descriptive analysis shows that gender, education, occupation and income

    level of respondents, and expenditure, income level of households were factors seemingly

    affecting the household WTP.

    The results of regression analysis shows the household income, type of

    questionnaire & respondents environmental awareness, and the age of respondents were

    statistically determinants of households WTP at 1%, 5% and 10% significant levels.

    3. STUDY RESULTS

    3.1. Socioeconomic character istics of sur vey househol ds

    A total of 401 respondents were interviewed. Of those respondents, the male accounted

    for 37.1% while the figure for the female was 62.6%. The average age of respondents

    was 48.1 years (ranging from 18 to 74). Almost all respondents (96.5%) were married.

    b. Survey households:

    The average number of the people in one survey households was 4.68 persons (ranging

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    from 1 to 15 persons per household). One survey household had 3.38 persons with the

    age of 18 and above (ranging from 1 to 9 persons). However, the number of person

    having the paid jobs was 2.24 persons per households (between 0 and 8 persons).

    Generally, the survey households have many good assets for their lives.

    Most of the households (68.9%) had the 2009 monthly expenditure between 2-6 million

    VND. Around 9% of the households expended between 1-2 million VND per month and

    around 20% expended more than 6 million VND per month. The highest share of the

    households (22.9%) was found to have the expenditure between 3-4 million VND per

    month.

    It was found that most of the households (83.3%) had the monthly income less than 9million VND in 2009. The share of the households with monthly income of less than 2

    million VND was 11.7%, and with monthly income of between 2-6 million was 52.4%.

    Almost the survey households is satisfied with their income level (Around 60% of the

    households stated that their income was for good quality of life and for some saving).

    About income between 2008 and 2009, around 53.6% revealed that there was no change

    and 58.9% of the survey households confirmed that their household income was

    improved and significantly improved over the next 5 years.

    When to be asked to assess their living condition by themselves, 65.3% of the

    respondents thought their household living condition was in average, while 16.9% said it

    was good and 13.7% claimed it was bad.

    3.2. Attitudes and perceptions of respondents on environment in TDM:

    In order to assess the attitudes and perception of the respondents on the environmental

    issues in TDM town, a series of questions was proposed for respondents to get their

    answers. At first, some questions on general issues on economic development were

    designed to get their attitudes, then the specific questions on environmental issues were

    proposed for the respondents.

    3.2.1. The priority of objectives to achieve

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    We had five objectives which the authorities of Binh Duong Province may try to achieve

    were listed. More than 88% of respondents considered that the priorities for Binh Duong

    was already included in five listed objectives. It was found that 34.8% of the respondents

    thought the first important objective would be the economic growth promotion while29% believed it would be health care service improvement and 21.3% considered it

    would be the water pollution reduction. The second important objective was considered

    the health care service improvement by 32.2%, the school and education improvement by

    22.9%.

    Of those five objectives, the water pollution reduction was quite important objectives as

    69.3% thought it would be one of the three most important objectives to achieve, and21.3% considered it as the most important objective. Therefore, it could be confirmed

    that water pollution reduction would play quite very important role for the people in

    TDM town.

    3.2.2. The environmental issues management

    A significant share of respondents (15.2%), however, disclosed that they had never heard

    about those issues. For better awareness of environmental issues, it was suggested more

    dissemination on environments through mass media and other should be promoted in the

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    futures.

    Around 85% of respondents in TDM town disagreed with the assumption that TDM

    Town needs to accelerate the industrialization and urbanization to increase jobs and

    incomes even if this implies increasing pollution and reducing environmental quality in

    TDM Town. Their concern on environmental quality is therefore not only for current

    generation, but also for the next generation.

    3.2.3. Opinions about stakeholders and contributions for environmental protection

    Almost of all respondents (98.7%) agreed or strongly agreed with the statement in the

    Environmental Protection Law of Viet Nam that Environmental Protection is the cause

    of the whole society, the right as well responsibility of state agencies, organizations,

    households and individuals.

    It was found that 3S program participation were thought by 33.4% of respondents

    as the most important one. More than 98% of respondents believed that those listed types

    of contribution were enough and they did not add any other types of contribution more.

    3.2.4. Water source for daily life and their discharge

    The coverage of clean water network in TDM was still limited. Besides, They did not

    want to change to the use of the clean water even the pipe was already installed at the

    gate of their house since they did not want to change their current pipe system and the

    installment would cost them significant amount of money.

    Up to now, there was no treatment system for domestic water in TDM town. It means that

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    all household wastewater in TDM town went into the canals and rivers without any

    treatments.

    3.3. Sewerage connection pl an

    One of the projects to mitigate the environmental pollution and to protect the publichealth is to have a sewage system to collect all the wastewater discharged from

    households in Thu Dau Mot Town, and to bring this wastewater to a wastewater

    treatment plant for treatment. In order to make it easier for the households in the wards to

    pay for the connection to the sewer pipe, the Action Plan would allow all households to

    pay for the connection by means a monthly payment for a period of 2 years.

    After the introduction, the respondents were firstly asked whether they voted in favor of

    the action plan if the action plan would cost the household nothing at all. It was foundthat 98% of respondents voted for the action plan while 2% (8 respondents) did not do so.

    The main reasons of why those respondents did not vote for the action plan were that

    those respondents would not like to change the sewerage system in their households.

    Most of them stated that they just built up their houses and if they connect to the

    sewerage system installed by the project, they would have to dig out their house floor. It

    would cost them a lot of money and would make their houses become messy and they

    therefore refused to connect to the sewerage system.

    3.4. Estimates of the willingness-to-pay:

    The respondents were asked about how much the household would be willing to pay to

    connect to the new sewer system through two type of question. That is closed-ended

    question and payment-card question. Of total 401 respondents, 207 were interviewed

    with closed-ended questions and 194 were with the payment-card question.

    With 207 respondents of the closed-ended question, 203 respondents voted in favor

    of action plan for new sewer connection, of which 68 were interviewed with bid level

    of 100 thousand VND, 70 were with bid level of 150 thousand VND, and 65 were with

    the level of 200 thousand VND.

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    Based on the survey results, using the Turnbull estimation with the formula of MWTP

    =Tj (Pi Pi+1). Where Tj is the bid levels and Pi is the probability of respondents

    voting in favor of action plan within the respective bid level. The MWTP for one survey

    households was 122.25 thousand VND per month for a period of 2 years. But, therespondents who voted for the action plan with offered bid, the average maximum

    WTP was 161 thousand VND per household while for the respondents who did

    not vote for the plan with the offered bid, the maximum WTP was only 63.5

    thousand VND per, household. The average maximum WTP for all respondents

    were 118.84 thousand VND per households.

    For the payment-card question, at first the different monthly payments for a period

    of 2 year and 190 out of 194 respondents with the payment card question selected

    different monthly payments with various probabilities. Based on the survey result, the

    estimation shows that the mean WTP of households was 103.43 thousand VND per

    household.

    3.5. Factors affecting the household WTP:

    3.4.1. Factors affecting the household WTP through descriptive analysis (binary

    analysis)

    1/ (1) Gender:

    The female respondents offered the lower household WTP. For closed-ended type, the

    WTP offered by the male and female respondents was similar. For payment-card type,

    the female would like to pay significantly less than the male.

    (2) Educational level of respondents:

    The respondents with low educational level would like to pay less than those with

    high educational levels.

    (3) Occupation of respondents and WTP

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    Household WTP of the workers/staff at the private enterprises and unemployment was

    smaller than government staff or staff of state enterprises, those who do self-business,

    pensioners and farmers offered higher WTP

    (4). Age of respondents and WTP: Younger respondents tended to give higher household

    WTP and the differences were not very significant

    (5) Household population and WTP: Smaller household size tended to give higher

    household WTP and the differences were not very significant

    6) Household labor force and WTP: The little difference of WTP between two

    groups of households (households with 3 persons over 18 and with more than 3

    persons over 18) was found and the difference was not very clear

    (7) Household expenditure and WTP: The households with smaller expenditure paid the

    smaller WTP and the differences between expenditure groups were quite significant and

    clear

    (8) Respondents income and the WTP: The respondents with smaller income level paid

    the smaller WTP. The difference between respondents income group w ere quite

    significant and clear

    (9) Households income levels and the WTP: the respondents of households with smaller

    income level paid the smaller WTP and the differences between household income

    groups were quite significant and clear

    (10). The WTP and the household opinions on expenditure and income:The respondents

    of wealthy households ( 127 and 140 thousand) paid more than the respondents of low

    income( 65 or 73 thousand VND).

    (11) The WTP and household living conditions: The WTP of households with good

    living condition (113 thousands VND) paid more than the WTP of households with bad

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    living condition (57 thousand VND) and average living condition (113 thousand VND).

    The difference between groups was quite significant.

    (12) Responde nts priority on the objectives of Binh Duong authority: The WTP of the

    respondents who ranked economic growth promotion and education improvements

    as the first objectives (126-128 thousand VND per month on average)paid more than

    the WTP of the respondents who thought healthcare service improvement(93 thousand

    VND per month)

    (13) Respondents hearing on environmental issues: The respondents informed that they

    heard about environmental issues on Thu Dau Mot Town many times on TV(118

    thousand VND per month) offered the higher WTP than those who have never heardabout the issue (99 thousand VND) and a few time hearings(110 thousand VND).

    (14) Respondents assessment on environmental problems in TDM: The respondents who

    considered the lack of wastewater treatments as the first important (120.8 thousand

    VND in average) paid higher than Other respondents who considered air pollution,

    pollution of water canal& river, and solid waste disposal as the first important(100-

    109 thousand VND).

    (15) Respondents attitudes on sacrifices of environmental quality for industrialization &

    urbanization: Many respondents disagreed and strongly disagreed with the sacrifices of

    environmental and they agreed to pay more than other respondents who had no idea or

    agreed with the trade-off

    (16) Respondents attitudes on sacrifices of income for environmental quality

    improvement: Many respondents (over 60%) were willing to scarify some income for

    better environmental quality in order that next generation can benefit from and

    Those respondents offered the higher WTP in compared with other respondents

    (17) Respondents knowledge on wastewater discharge situation

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    68% of respondents knew wastewater discharge situation. Those respondents offered

    higher WTP (115.4 thousand VND per month) than the respondents who did not

    know this situation (only 89.3 thousand VND per month)

    (18) Respondents opinions on hygiene condition improvement in TDM: The respondents

    considered improved hygiene condition in TDM were important And very important task

    and those respondents offered significantly higher WTP than others

    (19) Respondents opinions on household payment for wastewater treatment: Those yes

    respondents offered much higher WTP (116.7 thousand VND per month) while

    other respondents offered the WTP of only less than 90 thousands VND per month

    3.4.2. Factors affecting the household WTP through regression analysis:

    A linear regression function is applied to determine the factors affecting the

    Willingness to pay to connect the households to the sewerage system. The dependent

    variable is the households willingness to pay. In the function the maximum WTP in

    closed-ended questions is used while mean WTP in payment card question is used.

    The independent variables are WTP, Gender, Age, Marriage, Education, Population,

    HH_Expenditure, Res_income, Working _person, HH_income, Envi_Awareness,Question_dummy

    Output of regression analysis of factor affecting household WTP are Household

    income, Type of question, the environmental awareness of respondents, The age of

    respondents, The older the respondent.

    Conclusion

    In order to promote household sewerage connection in cities where separate

    sewerage systems are being developed under the assistance of JICA, a survey of

    400 households in 6 targeted wards in Thu Dau Mot town where separate sewerage

    systems are being developed was conducted to understand the resident s attitudes on

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    environmental issues and their willingness to pay to connect the households to the

    wastewater system. 207 households were interviewed with closed-ended questionnaire

    while 194 households were interviewed with payment card questions. The mean WTP

    for one survey household was 122.25 thousand VND per month for closed-endedquestions using Turnbull estimation and it was 103.43 thousand per month for

    payment card questions. With descriptive show that gender, education, occupation and

    income level of respondents, and expenditure, income level of households were

    factors seemingly affecting the household WTP. With the results of regression

    analysis: the household income, type of quest ionnaire & respondents environmental

    awareness, and the age of respondents were statistically determinants of households WTP

    at 1%, 5% and 10% significant levels.

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