Is PAYT/waste charging a viable means to reduce municipal solid waste?

Asked by: Diqiucun_Cunmin
  • Sometimes economic incentives are the way to go.

    From an economics point of view, waste charging internalises the external cost of waste treatment and thereby shifts the marginal private cost curve of dumping waste to the left. PAYT is consistent with the polluter-pays principle and encourages reduction, reuse and recycling. Recycling industries in particular will find much use in waste charging as long as the fee to be paid by the household to recycle rubbish (if any) is lower than the fee paid for waste disposal. There are issues in implementation, like how to deal with people who evade the law by taking their rubbish to public bins, but successful examples like South Korea and Taiwan have shown that monitoring by neighbours can effectively prevent this.

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