PAYT is an abbreviation for pay as you throw, a usage pricing model for disposing of solid waste (trash). PAYT is sometimes referred to a 'unit pricing'or 'variable rate pricing'. Users pay a variable rate based on how much trash that they generate. Recycling is hauled away for free.

There are two separate rationales for using variable rate pricing: one is economic and the other is environmental.

Economic

Variable rate pricing increases the incentive to generate less trash. In communities where the flat fee is insufficient to cover the costs of solid waste disposal, tax subsidies are frequently used. This create two levels of subsidy which hide the true cost of trash disposal. The first subsidy is paid by the community through taxes and the second subsidy is paid by those who generate less trash to cover the costs of those who generate more trash.

Environmental

Communities who have implemented PAYT systems have seen substantial decreases in the quantity of trash that they generate and substantial increases in the amount of recycling that occurs. This benefits the environment by reducing pollution from landfills and incinerators. It also benefits the environment by increasing the supply of recycled materials that can be used instead of raw materials.

Implementation Models

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PAYT has been implemented by many communities ranging from large cities to small towns. In communities with curb side pickup, PAYT is frequently implemented by charging a fee for a particular container for trash which is picked up weekly. In communities with a centralized spot for trash pickup (sometimes referred to as a Dump or Transfer Station), PAYT is frequently implemented by requiring trash to be placed in particular trash bags which are sold at a higher than normal fee with the excess price used to finance the trash disposal costs. In some communities any trash bag can be used but a trash sticker must be affixed to each bag or container.

Waste management