Pay as you throw

Waste management payment model

Pay as you throw (PAYT) (also called trash metering, unit pricing, variable rate pricing, or user pay) is a usage pricing model for disposing of municipal solid waste. Users are charged a rate based on how much waste they present for collection to the municipality or local authority. A variety of models exist depending on the region and municipality. Waste can be measured by weight or size, or by unit counts, identified using different types of bags, tags, containers or even RFID. Services for waste diversion, like recycling and composting, are often provided free of charge where pay as you throw systems are implemented. There are three main types of pay as you throw programmes: Full unit pricing: users pay for all the garbage they want collected in advance by purchasing a tag, custom bag, or selected size container. Partial unit pricing: the local authority or municipality decides on a maximum number of bags or containers of garbage, with collection paid for by taxes. Additional bags or containers are available for purchase should the user exceed the permitted amount Variable rate pricing: users can choose to rent a container of varying sizes (some programs offer up to five), with the price corresponding to the amount of waste generated.

The two most traditional approaches to disposing of municipal solid waste are a flat rate system or municipal taxes. All users pay the same flat rate or tax regardless of how much waste they present for pickup. Under the flat rate system there is no incentive to reduce waste produced. PAYT is based on two guiding principles of environmental policy: the polluter pays principle and the shared responsibility concept. Municipalities in Massachusetts have typically observed a reduction in trash larger than the increase in recycling, but this is believed to be due to people formerly bringing in trash from other communities (where presumably there is no free pickup) to the homes of friends and relatives.

When there is a change to any established municipal service, public resistance is common.

Urban communities usually offer curbside collection while rural communities provide drop off collection service.

PAYT programs operated in California, Michigan, New York and Washington as early as the 1970s, although The City of San Francisco “had practiced a kind of PAYT scheme since 1932.” Since 1991, the European Waste Policy has required that “part of the costs not covered by revenues from material reuse must be recovered on the polluter pays principle.” Versions of PAYT are present in municipalities all over Europe. PAYT is also implemented in Korea, Thailand, Vietnam, China, and Republic of China (Taiwan). Starting in April 2024, Hong Kong will implement its PAYT programme. PAYT pricing has also been recently introduced in parts of Bangalore through the wastepicker cooperative Hasiru Dala, founded by Nalini Shekar. The organization followed the 2 bin 1 bag segregation method, and charged differently for compost able waste and landfill rejects, while paying for recyclables. Apartments serviced through this pricing mechanism showed a significant reduction in their garbage footprint.