By ESG Analyst Casey Luk
The world is grappling with a global “trash crisis” globally, necessitating innovative solutions to enhance efficiency in waste reduction at the source. One of the solutions adopted by many cities in the world is the Pay-As-You-Throw (PAYT) model, with examples like Hong Kong, Seattle, and Seoul. However, how effective is it in reducing waste at the source? and is it the ultimate solution to sustainable waste management in cities?
What is Pay-As-You-Throw?
Pay as You Throw (PAYT) is a usage-pricing model that applies the “polluter pays” principle to charge residents waste fees. Unlike fixed-rate charging models, the PAYT charges individuals based on various measurements of the waste, such as weight, size, and type, utilizing methods such as different bags, tags, stickers, or Radio-frequency Identification (RFID).
Current implementations and outcomes
In Seattle, where the PAYT model was first introduced in 1981, charges residents different fees depending on the size of a household’s subscribed garbage cart, ranging from 12-96 gallons. As garbage cart rates can go up to almost $130USD per month, the implementation of waste collection charging fees has found to reduce the volume of garbage for curbside collection.
However, as seen in Figure 1, the model did not generate a significant impact on reducing the amount of waste disposed until recycling and yard waste collections became as equally convenient as curbside garbage collection. By 2018, Seattle witnessed a staggering decrease of 61% in disposal weight from 6.2 lbs/collection day to 2.4 lbs/collection day.
Figure 2: South Korea’s food waste bin
Technology has bolstered the effectiveness of waste charging as seen in Seoul’s adoption of an RFID waste pricing system. Targeting reduction of food waste, The Ministry of Environment of the Republic of Korea adopted this scheme, which drastically increased their recycling rates from 2% to 95%. Under this scheme, households receive biodegradable bags featuring RFID tag-embedded cards, which are scanned before they dispose of their waste (see Figure 2).
The weight is then automatically calculated through a scale and billed to the resident’s account at the end of every month. This resulted in a 30% reduction in household food waste, and almost 100% increase in the recycling rate of food waste.
Other cities in Asia like Hong Kong, plans to implement a waste levy using designated rubbish bags to reduce residents’ disposal weight and alleviate landfill pressures. Under this new measure, residents would need to purchase specific plastic bags for garbage disposal. However, public concerns arise regarding proper disposal of large items which does not fit inside the plastics bags after adoption of the waste charging scheme.
Challenges of the PAYT Model in driving sustainability
- Resident’s compliance and cooperation
Though the PAYT model seems like a quick fix to the global waste problem, its effectiveness hinges on residents’ compliance and cooperation. Both law enforcements and raising residents’ awareness and sense of urgency of the issue are as equally important in ensuring the success of the scheme. Therefore, alongside implementing the PAYT model, policies should also address any loopholes such as illegal waste diversions to workplaces or private incinerations.
2. Unintended consequences in PAYT model design
How the PAYT pricing model is being designed also influence its success in waste reduction. For instance, in Hong Kong’s model, where residents must buy designated plastic bags. This restriction implies that individuals cannot utilize existing bags they may have at home and must purchase new ones instead. Consequently, this policy may inadvertently promote increased plastic waste generation, undermining the model’s intended objectives of waste reduction at the source.
Conclusion
While the PAYT model shows promise in addressing urban waste management and reduction challenges, its success depends on resident compliance and thoughtful policy design. Though PAYT has demonstrated its effectiveness through the examples of Seattle and Seoul, challenges remain in ensuring resident cooperation and mitigating unintended consequences. By addressing these issues, PAYT can play a crucial role in minimizing waste generation at the source.