United States
Environmental Protection
Agency
Solid Waste and
Emergency Response
(5305W)
EPA530-F-96-030
April 1997
&EPA Pay-As-You-Throw
MSW programs
today need to offer
more than reliable
waste collection
services. In some
communities, the
issue is rising
collection and
disposal costs.
Others are looking
for ways to extend
landfill capacity.
A Fact Sheet for MSW Planners
As an MSW planner, you
know how important it
is to reduce the amount
of waste residents put
nut for r.nlli ection (or bring to the
landfill).
In fact, your community probably
started a recycling program to help
divert some of this waste from dis-
posal. Even with a strong recycling
program, however, it's likely that
your residents are throwing away
more each year-pointing to the
need not only for more recycling,
but also to get residents to generate
less waste in the first place.
In nearly 2,000 communities, a pro-
gram called "pay-as-you-throw" is
helping MSW planners meet this
challenge.
What is
pay-as-you-throw?
Pay-as-you-throw programs,
also known as unit-based
or variable-rate
pricing,
provide a direct economic incentive
for your residents to reduce the
amount of waste they generate.
Households are charged for waste
collection based on the amount of
waste they throw away-in the same
way that they are charged for elec-
tricity, gas, and other utilities. As a
result, residents are motivated not
only to boost the amount they recy-
cle, but also to think about generat-
ing less waste in the first place.
Pay-as-you-throw programs can be
structured in several different ways.
Some communities charge residents
based on the volume of waste they
generate. Under volume-based pro-
grams, residents are charged a fee
for each bag or can they fill up.
Communities also can require that
residents purchase tags or stickers
and affix them
to their own con-
tainers. Other
communities bill
residents based
on the weight
of their trash-
although,
because of
the
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cost of the equipment needed to weigh the waste and
record the amount for billing purposes, weight-based
programs are far less common.
What are the benefits of
pay-as-you-throw?
However it is structured, pay-as-you-throw has the
potential to improve MSW programs in several
important ways. First, there are significant economic
benefits. Because of the incentive to generate less,
communities with programs in place have reported
reductions in waste amounts ranging from 25 to 35
percent, on average. For many
communities, this can lead to
lower disposal costs and savings
in waste transportation expens-
es. Pay-as-you-throw communi-
ties also typically report
significant increases in recy-
cling. When recycling markets
are strong, this can yield
increased revenues from the sale
of collected materials.
Pay-as-you-throw programs can
be designed to cover the cost
not only of waste collection and
disposal, but also of some or all of the community's
complementary MSW programs (such as recycling,
composting, and bulky waste collections). There
often are new costs when a pay-as-you-throw pro-
gram is adopted, including expenditures for educa-
tion and enforcement. These costs usually are not
significant, however-and they can be built into a
pay-as-you-throw rate structure.
Another advantage of pay-as-you-throw programs is
the greater control over costs they offer to residents.
While they may not realize it, your residents pay for
waste management services. And whether they pay
through their taxes or with a flat fee, residents who
generate less and recycle more are paying for neigh-
bors who generate two or even three times as much
waste. With pay-as-you-throw, residents who reduce
and recycle are rewarded with a lower trash bill.
This incentive to put less waste at the curb also can
make a big environmental difference. When people
generate less waste and recycle more, fewer natural
resources are used, there is less pollution from manu-
facturing, and less landfill space is consumed, reduc-
ing the need to site new facilities.
Are there disadvantages to
pay-as-you-throw?
While there are potential barriers to a successful pro-
gram, communities with pay-as-you-throw report that
they have found effective solutions. Community offi-
cials often raise the prospect of illegal dumping when
they first learn about pay-as-you-
throw. Most communities with
pay-as-you-throw, however, have
found that illegal dumping in fact
did not increase after implementa-
tion. This is especially true when
communities offer their residents
recycling, composting for yard
trimmings, and other programs
that allow individuals to reduce
waste legally. Others, particularly
lower-income residents, worry
about the amount they will have
to pay. In many communities,
however, coupon or voucher programs are helping to
defray their expenses.
How can I learn more about
pay-as-you-throw?
EPA has developed a series of products for anyone
interested in pay-as-you-throw. Individuals looking
for more information on these programs can request
additional fact sheets, community success stories,
and other materials. For local solid waste planners
interested in bringing pay-as-you-throw to their
community, EPA has developed a comprehensive set
of tools to help them design and implement a
successful program. To find out more about EPA's
collection of products, call the Pay-as-you-throw
Helpline toU free at 888-EPA-PAYT.
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