Is It Possible to Implement the Same Circular-Economy Concept in Rural and Urban Areas? Study on Willingness to Pay for Household Waste

Abstract

Household waste management is still a problem that has not been fully solved in various countries, regions, and even in households, due to various factors from within and outside the individual. Nevertheless, efforts to improve waste management continue, including the Willingness to Pay (WTP) model for better waste management. The research hypothesizes that various important factors that influence WTP can lead to a circular economy. The research data is collected through an online survey with a total of 255 respondents, which overall discusses waste and the strategies in its management. Based on factor analysis, the area of residence (rural or urban areas) and the income of respondents have a significant effect on WTP decisions. Furthermore, the WTP decision is tested through respondents’ perceptions of various aspects of the circular economy that have an impact on health, awareness, desire, ability, and marketing prospects of waste which, when tested using the Spearman correlation, shows correlation between all aspects. We recommend these results to stakeholders to improve the management system of household waste management in both rural and urban areas through the WTP system, to achieve a circular economy.