Assessing residents' preference and willingness to pay for waste classification service modes: Evidence from discrete...

Despite numerous policies and initiatives, market-oriented service modes for municipal solid waste (MSW) classification in China continue to face significant challenges, particularly regarding market viability, resident preferences, and pricing strategies. This study integrates three service modes - Fee Mode, Reward Mode and Traditional Mode - into a discrete choice experiment, analyzed through a mixed logit model. Our findings reveal substantial market potential for MSW classification services. Notably, while the Fee Mode is still in its nascent stage, nearly 65% of residents express a willingness to pay, with a preferred price range of $3-$4.5 per household per month. Key factors influencing resident preferences include the initial time investment for waste classification and proximity to classification facilities. Lower and middle-income households are less inclined to opt for Fee Mode, especially in communities where waste management quality is perceived to be poor. However, stringent government regulations and heightened environmental awareness among residents bolster its market outlook. In comparison, Reward Mode shows stronger growth potential, particularly among residents with established waste-sorting habits. Based on these insights, we recommend policies focused on phased development, targeted promotion strategies, and enhanced policy support to foster greater adoption of MSW classification services.