What is Pay-as-You-Throw/Unit-Based Pricing?
Pay as you throw (PAYT), also known as unit based pricing, is a waste management system in which households and businesses are charged based on the amount of waste they discard rather than paying a fixed fee. The system encourages waste reduction, recycling, and composting by linking disposal costs directly to the quantity of garbage generated.
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Under a PAYT system, residents might pay per bag, bin, or weight of waste collected, similar to how utilities charge for water or electricity. This approach provides a financial incentive to minimize waste and increase participation in recycling and organics programs. Related terms include variable rate pricing and volume based waste fees. PAYT is widely implemented in North American municipalities as part of broader circular economy and zero waste strategies, helping communities shift toward more sustainable consumption habits.