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Naz, Antonia Corinthia C and Mario Tuscan N. Naz. 2006. Modeling ...

Naz, Antonia Corinthia C and Mario Tuscan N. Naz. 2006. Modeling ...

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Where: V = coefficient of variation<br />

∆ = possible deviation as a percentage of the mean revealed WTP<br />

α = 0.10 indicates that 90% of the time estimated mean WTP will be within ∆ of true<br />

mean WTP<br />

3.2.1.3. The Definition of Variables <strong>and</strong> the Econometric Models<br />

Models for Households<br />

Model 1: Basic Model (ECOSWAM Attributes only) of the Base Case<br />

ViH = f (Xk, εH) (6a)<br />

ViH = ASCH + β1H * C + β2H * F + β3H * P + β4H * WTL1 + β5H * WTL2 (6b)<br />

Model 2: Complete or Exp<strong>and</strong>ed Model (ECOSWAM attributes interacted with the<br />

characteristics of the households) of the Base Case<br />

ViHC = f (Xk, ZmH, εH) (7)<br />

Where: i = option = 1, 2; option 2 is the base case in the choice set<br />

ViH = The probability that the household (respondent) will choose<br />

the ith option in the choice set<br />

X k = Attributes of the ECOSWAM options (see Table 3.1)<br />

ASCH = Alternative specific constant for households<br />

β k = Coefficients of the attributes, X k<br />

Z mH = Individual characteristics of the household (H) interacted with<br />

the attributes of the ECOSWAM service options<br />

α mH = Coefficients of the Z mH interacted with a XK<br />

εH = Error term to explain other factors affecting the choice that<br />

are not included in the model for households<br />

Subscript H = Basic Household Model 1<br />

Subscript HC = Complete or Exp<strong>and</strong>ed Household Model 2<br />

Table 4: Variables in the Choice Models for the Households<br />

Variable /<br />

Description <strong>and</strong> Codes<br />

Coefficient<br />

Dependent Variable The probability that the household (respondent) will choose the ith option in<br />

ViH<br />

the choice set<br />

Independent Variables<br />

Xk<br />

Attributes of ECOSWAM Services<br />

C Collector of waste <strong>and</strong> waste collection or transport vehicle<br />

Level 1: barangay workers with hired vehicle, e.g., jeepney (0)<br />

Level 2: municipal workers with truck (1)<br />

F Frequency or number of times waste is collected in a week<br />

Level 1: Once a week (1); Level 2: Twice a week (2)<br />

P Price of the ECOSWAM service or the user fee<br />

Level 1: PhP5/week(5)<br />

Level 2: PhP10/week(10)<br />

Level 3: PhP15/week(15)<br />

Level 4: Php20/week(20)<br />

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