Think tank touts 'Pay as You Throw' rates

Chilean municipalities should implement a "Pay as You Throw" rates scheme for solid waste management, according to local think tank Libertad y Desarrollo (LyD). The scheme would change the current system, where rates for all users are the same, independent of the amount of waste they generate. Municipalities now calculate rates by dividing the total cost of the service by the total number of users. The fact that properties worth less than around US$1,350 are exempt from this payment, and that not all municipalities include all the costs in the rates calculation, has caused that on average only 30% of the collection and disposal costs are collected. The municipalities finance the balance. According to LyD, the current scheme means those who generate less waste (generally poorer people) pay a higher rate than those who generate more waste, meaning the former is subsidizing the latter. Further, the rate is charged through the property-tax payment, which means users are generally not aware of the charge. Though the 1995 municipal income law allows municipalities to charge based on the amount of waste generated, this has not been implemented, said the think tank. The "Pay as You Throw" concept that has been in place in some parts of the US since the 1990s, and other countries, acts as an incentive to reduce waste generation and promote recycling and reuse programs, according to LyD. Figures cited by the think tank show the amount of waste going to landfills drops 25-45% under the "Pay as You Throw" concept, and thereby reduces collection and disposal costs.