This research was conducted aiming at addressing environmental quality by assessing the waste discharging practices of households, identifying the most significant variables affecting willingness to pay for urban solid waste management and the cost that can be saved because of the improvement in waste management techniques in Mizan-Aman town. Contingent valuation coupled with logistic regression method of analysis was employed for the sake of addressing the determinants of WTP and to estimate the cost recovery from improved solid waste management. The result of the survey revealed that most of the households considered in the survey has poor culture of discarding the wastes collected in the appropriate location because of awareness problem, inaccessibility of waste sinking sites/containers and poor management of the program. Though the households have the willingness to pay for the improvement scheme; educational background, income, environmental awareness, age, marital status and sex of the households are the most significant variables that affect willingness to pay for improved solid waste management. The cost that could be recovered because of the improvement is about 70,537.30 USD /year can be saved.

Keywords: Environmental quality; Logistic regression; Mizan-Aman; Waste disposal; Willingness to Pay.