Informal Emptying Business in Mandalay: Its Reasons and Financial Impacts

Abstract

Globally, 2.8 billion people use on-site sanitation facilities, which need regular emptying of accumulated fecal sludge. Illegal dumping from informal emptying businesses, one of the major challenges in environmental management, is widely observed. Considering Mandalay, Myanmar, this study aimed to determine why informal emptying businesses are selected and estimate the lost revenue for a formal emptying service provider (FP) due to the informal businesses. We interviewed 400 households on their recognition and experiences regarding emptying services and willingness-to-pay for improved service. Revenue loss was estimated by comparing the present and theoretical maximum revenues. Results showed that 91.0% of households recognized FP only. Among 134 emptying-experienced households, 32.8%, 59.7%, and 4.5% chose FP with legal contact, FP with illegal contact, and informal service providers, respectively. The service fees from FP with illegal contact did not become revenue for FP; this was a major informal emptying business in the city. Differently from previous studies, the major illegal dumping was done by FP in this area. A great financial loss was estimated that FP lost 76.5% of the theoretical maximum revenue due to informal business. Logistic regression analysis indicated people’s intention to shorten the waiting time through illegal contact, even by paying a higher fee. As emptying services are typically required immediately after fecal sludge is over-accumulated, shorter waiting times and faster contact methods were the reasons why the informal business was selected. Less bureaucratic and more customer friendly system could reduce revenue loss, charge more, and increase profits.