United States

Environmental Protection

Agency

Solid Waste and

Emergency Response

(5305W)

EPA530-F-96-029

April 1997

Pay-As-You-Throw

A Fact Sheet for State Officials

T

oday, waste reduction is the

focus of MSW planning in

most states. This has helped

recycling programs to spread

quickly, and recycling markets have

Like most state

environmental

officials and

planners, you’ve

probably been

emphasizing the

MSW management

hierarchy:

recommending that

communities reduce

and recycle as much

as possible.

been developed to purchase and

process the collected materials.

Source reduction, however, has fallen

behind this pace. While the rate of

increase is slowing, individuals in

this country are continuing to generate more waste each year-and, as a

result, waste management is growing

more difficult. Communities in your

state need programs that will do

more than increase recycling: they

need to encourage residents to prevent waste, too.

For growing numbers of communities, “pay-as-you-throw” programs

are being used to achieve this goal.

While fewer than 200 programs were

in existence as recently as the mid1980s, today nearly 2,000 communities across the country have adopted

them.

What is

pay-as-you-throw?

Pay-as-you-throw programs, also

known as unit-based or variable-rate

pricing, provide direct economic

incentives for individuals to create

less trash. Households are charged

for waste collection based on the

amount of waste they throw awayin the same way that they are

charged for electricity, gas, and

other utilities. As a result, residents

are motivated not only to recycle

more, but also to generate 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 programs, residents pay for each

bag or can they fill up. Communities also can require

that residents purchase tags or stickers and affix them

to their own containers. Other communities bill residents based on the weight of their trash, although

because of the 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 they are structured, all

pay-as-you-throw programs share

important benefits for both communities and their residents. First,

households under pay-as-you-throw

have more control over their solid

waste management costs. While they

may not realize it, residents pay for

the waste management services they

receive. And whether they pay

through their taxes or with a flat

fee, residents who generate less and

recycle more are paying for neighbors who generate

two or three times as much. With pay-as-you-throw,

residents who reduce and recycle are rewarded with

a lower trash bill.

This incentive has resulted in reported average

reductions in waste amounts ranging from 25 to 35

percent. Recycling tends to increase significantly as

well, further cutting down on the amount of waste

requiring disposal. This can mean lower disposal

costs, savings in waste transportation expenses,

potentially greater revenues from the sale of recovered materials, and other savings.

Less waste and increased recycling at the local level

translate into an improved solid waste management

picture statewide. Larger amounts of recovered materials will become available to processors and remanufacturers, encouraging the development of recycling

capacity and other infrastructure investments. The

potential for lower costs can help increase the longterm economic stability of your communities’ MSW

programs. And less waste means fewer natural

resources will be depleted, less energy used, and less

landfill space consumed, helping to preserve your

state’s environment. Because of these kinds of advantages, pay-as-you-throw has received bipartisan support at both the state and local levels. The use of

pay-as-you-throw also has been endorsed by the

National Conference of State Legislatures (NCSL).

Are there disadvantages to

pay-as-you-throw?

While there are potential barriers to a successful

program, communities with pay-as-you-throw have

found effective solutions. Local

officials, for example, often

assume that illegal dumping

will increase once residents are

asked to pay for each container

of waste they generate. Most

communities with pay-as-youthrow have found this not to

be the case, however, especially when they offer their residents recycling, composting for

yard trimmings, and other programs that allow individuals to

reduce waste legally. Others, particularly lowerincome 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 toll free at 888-EPA-PAYT.