Household behavior under alternative pay-as-you-throw systems for solid waste disposal

In 1994, residents of Marietta, Georgia, participated in a pay-as-you-throw solid waste demonstration project. Rather than pay a fixed monthly fee for collection, half of the residents pain a fee per reusable trash can, and half paid for each nonreusable trash bag collected. Data from both a sample of households and city-wide totals indicate that the programs significantly reduced waste set-outs, even after accounting for increases in (unpriced) recycling. The bag program caused larger reductions (36%) than the subscription can program (14%). Rough estimates of the program indicate both savings for residents and social welfare increases. (JEL Q20).