There is non-changing behavior of residents in cooperating and contributing for improved solid
waste management in spite of increasing provision of solid waste management services in many
urban areas. This paper starts from a hypothesis that institutional factors (interventions) are
missing. We considered the case of issuing laws and creating awareness about the health and
economic burdens due to improper waste management. We applied a paired-t test to test our
hypothesis. We find that institutional factors, creating awareness and introducing rules,
significantly increase household’s willingness to pay for improved solid waste management
services. We find also increasing awareness is more influential than issuing laws. The findings
do have important policy implications in reducing not only solid waste management problems
but also many other environmental problems in developing countries.