International Review of Waste Management Policy - Department of ...

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� Sack-based schemes with charges also placed on compostable waste reduce
total waste by 36%. Where compostable waste is not charged for, the
reduction in total waste is 14% (the difference in the two is reflected mainly in
the quantity of material collected separately from the kerbside);
� The frequency based system delivers a reduction in total waste of 21%; and
� The volume based bin system delivers a reduction in total waste of 6%.
This data suggests that the approach to the charging of garden waste is also
important. It should be noted that these effects were achieved at different price
levels. However, the same work includes estimates of elasticities as shown in Table
8-3. These high results are probably indicative of the Netherlands experience where
garden waste had previously been collected free of charge (so giving greater scope for
reduction).
Table 8-3: Estimated Price Elasticities under Different Charging Schemes
Price Price Total Total Unsorted Unsorted Compos Compostable
Compos table Recyclable
Recyclable
Standard model
Weight 4.39 -0.47 -0.67 -0.92 0.16
Bag, refuse and
compostable
2.02 -0.43 -0.66 -0.97 0.25
Bag, refuse 2.15 -0.14 -0.71 0.29 0.14
Frequency 3.91 -0.22 -0.28 -0.40 0.08
Volume
Model with environmental
activism
1.94 -0.06 -0.12 0.01 0.01
Weight 4.39 -0.40 -0.53 -0.81 0.12
Bag, refuse and
compostable
2.02 -0.36 -0.51 -0.85 0.20
Bag, refuse 2.15 -0.07 -0.58 0.40 0.09
Frequency 3.91 -0.16 -0.16 -0.31 0.04
Volume 1.94 -0.00 0.01 0.09 -0.03
Source: Dijkgraaf, E., and Gradus, R. (2003) Cost Savings of Unit-Based Pricing of Household waste,
the case of the Netherlands. Rotterdam: OCFEB
The work by Dijkgraaf and Gradus is of particular interest in the evaluation of
environmental effectiveness of PAYT systems. In their studies they attempted an
extensive cost-benefit analysis of DVR charging systems, noting:
“From a welfare point of view a number of effects are important with respect
to the evaluation of unit-based pricing systems:
1. The change in collection costs due to the effect on the collected
quantity.
2. The change in treatment costs due to the effect on the collected
quantity.
3. The change in administrative costs due to the introduction and
maintenance of the unit-based pricing system.
4. The social costs of extra illegal dumping due to the introduction of unitbased
pricing system.
International Review of Waste Policy: Annexes