First of all, it is essential to note that the approach towards the garbage collection and its further utilization is radically changed by the communities across US. Currently, pay-as-you throw system (which is also referred in the scientific literature as the volume-based, unit pricing or variable rate system) is already launched by significant number of local governments. The core motivating factors for such approach are the following: increased rates of the costs for disposal as well as the reduction and recycling goals, which are set by the states on the legislative level.
In accordance with the traditional approach towards garbage collection and utilization, the expenditures are covered by the property taxes, paid by the residents or via the monthly fixed fees, which are set for each household on an individual basis.
Regulations, set by the pay-as-you-throw systems, imply that the fees are charged, while referring to the total amount of waste products, thrown away. In such case, the option for motivating the residents for minimization of their waste, emerges as well as the local government reduces the disposal costs and the costs for transportation of garbage (DCA, 2014).
It is essential to note that from the economic perspective, the traditional model of garbage collection and utilization is changed by the volume-based waste fee (VBWF) policy - as the metered price is set for the households for the waste, generated by them.
The practical implementation of such approach may be represented in either of the following forms: subscriptions for the bin with the tiered pricing; request of attaching the licensed tags to each particular bag of garbage; mandates for utilization of the licensed bags. In the scope of the above lusted programs, recycling of the curbside is still free.
In accordance with the statistical data, represented by Abrashkin (2015), the active implementation of the VBWF programs has already taken its pace in 30 of 100 large cities of U.S. It means that almost ¼ of the total population of the country compensates the waste recycling and utilization in accordance with this approach.
It is claimed by the experts that the incentive, oriented on the waste minimization, such as VBWF programs, has the economic potential of reducing the rate of rubbish for approximately 17 %. There are three major factors, which may contribute the practical implementation of such strategic approach towards new environmental policy in US: composting of organic waste; greater diversion of recycling; top-line minimization of the rates of generated waste. More than that, VBWF has the potential of generation of the additional costs for municipalities as well as sets the new approach towards allocation of the costs for the waste in a fair manner.
One more economic advantage of such approach is that this system may be adjusted to the different types of infrastructures and specific features of each particular community. At the same time, there are some economic barriers for the municipalities in terms of practical application of the metered pricing mechanisms to the large dwellings, occupied by multiple families. The core reason for that is the option for the residents to ignore the mandates and thus, dispose their garbage without compensation for the stickers or licensed bags. Thus, the large cities (such as New York) are challenged for addressing this issue.
That is why, the set of the factors will make its impact on the economic success of the offered VBWF program. One of the major factors in this case is to insulate the residents of municipalities from the direct costs of the unit pricing, implied by VBWF.
In the case if there is no need for paying for each particular licensed bag, the core factors, which would make their impact on the waste disposal and its further recycling, should be based on education. Such education would be represented in the set of the following forms: public awareness advertising and campaigns; encouragement from landlords for maximization of waste recycling; visual effect, which is made by the colored bags, located for the garbage collection on the curbside.
It is possible to state a fact that the straightforward market mechanism is provided by the VBWF policies in terms of proper and fair allocation of the costs (for collection of the garbage and its recycling or utilization) among the residents. In addition, flexible and adaptable strategy is offered by VBWF – as it may be easily adjusted to the common collection practices of the municipalities and the type of population (urban, suburban or rural).
The pricing mechanism is the core success factor of the offered program (from the economic perspective). The core argumentation for this statement is that the individual responsibility of every household for the waste and its further recycling is promoted by it – in the same manner as the efficiency in allocation of such resources as water, gas, as well as electricity. Even while taking into account the fact that the practical application of the single policy is most effective for the relatively homogenous communities, there is still an option of the program adjustment to the mixed areas. This quality of the offered approach makes it effective from the economic perspective and makes large contributions to protection of the environment (Abrashkin, 2015).
References
Abrashkin, J. (2015) Volume-Based Waste Fee (VBWF): Effect on Recycling and Applicability to New York City. Retrieved from: http://www.seas.columbia.edu/earth/wtert/sofos/Abrashkin_Thesis.pdf
DCA (2014) Pay-As-You-Throw Collection Systems. Retrieved from: https://www.dca.ga.gov/development/EnvironmentalManagement/programs/downloads/pay.pdf
