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 is measured by weight or size while units are 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 PAYT systems are implemented.
There are three main types of PAYT programs:
- 1. Full-unit pricing: Users pay for all the garbage they want collected in advance by purchasing a tag, custom bag, or selected size container.
- 2. Partial-unit pricing: The local authority or municipality decides on a maximum number of bags or containers of garbage, with collection paid for taxes. Additional bags or containers are available for purchase should the user exceed the permitted amount
- 3. 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.
Read more about Pay As You Throw: Rationale, Risks, Implementation
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