Pay as you throw

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. When promoting the PAYT scheme, by emphasizing the responsibility for paying for waste produced rather than a flat-rate fee, there is increased public preference for the PAYT scheme.

PAYT is based on two guiding principles of environmental policy: the polluter pays principle and the shared responsibility concept. The rationale for PAYT can be divided into three broad categories:

Under a PAYT scheme, some or all of the costs of waste management can be removed from property tax bills, providing more independence in the management and financial of residential waste system. Waste management services are then treated just like other utilities such as electricity or water that are charged by unit of consumption.

The PAYT programs are an effective tool in increasing waste separation, recycling, and waste minimization. The result is significant energy savings from transportation, increases in material recovery from recycling, and reduction in pollution from landfills and incinerators. Therefore, it reduces the load of landfills. Additionally, PAYT programs also indirectly encourage producers to develop more efficient designs and environmentally friendly product life cycles.

Waste collections costs are distributed more fairly among the population, and in proportion to the amount of waste each user generates. Free riders are no longer able to have their behavior subsidized, and PAYT is said to promote community sustainability. Lower-income families tend to produce less waste and thus pay lower waste collection fees.