What is the Best Price for Per Unit of Waste Collected Given That Main Object is to Increase Recycling

8/19/2019 What is the Best Price for Per Unit of Waste Collected Given That Main Object is to Increase Recycling

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Ricardo Marsh 500495594

What is the best price for per unit of waste collected given that main

object is to increase recycling and the advantage of this program.

As the city of Toronto embark on a next educational campaign to help communicate to

residents in apartments and condos about the importance of proper sorting, disposal and

diversion. This paper is to show by applying the appropriate price per unit of waste

collect the city can drastically increase the desire to recycle. According to the city of

Toronto website in 2012, residents living in singlefamily homes had a diversion rate of

!!" while those living in multiresidential buildings achieved a rate of only 2#", for a

combined diversion rate of $2". %ased on this information its safe to say that a better

alternative is needed.

To establish whether something is a resource or &ust garbage, to be disposed of at the

lowest possible cost, including costs to the environment. The answer comes down to

price. 'f someone will pay you for the item, it(s a resource. )r, if you can use the item to

make something else people want, and do it at lower price or higher *uality than you

could without that item, then the item is also a resource. %ut if you have to pay someone

to take it, then the item is garbage. This is the ma&or problem with recycling the price and

the cost is vague.




+ig. 1. The arginal utility for recycling in Toronto

The citi-ens of Toronto have a low utility to recycle. elying on their morals alone will

not change this. This is where the pay as throw will help. Traditionally, residents pay for

waste collection through property taxes or a fixed fee, regardless of how much/or how

little/trash they generate. ayAsouthrow AT3 breaks with tradition by treating

trash services &ust like electricity, gas, and other utilities. 4ouseholds pay a variable rate

depending on the amount of service they use. The AT works off the principle that the

polluters internali-e the cost of the garbage they produce.




+ig 2. 5upply and 6emand curve for garbage

The city faces a demand and supply curve like the one listed above for garbage. 7here

the *uantity is the amount of garbage collected. 8iven that that city is face with this

demand curve and the main goal of the government is to reduce garbage collection thus

increase recycling. The *uestion is what is the best price9

'f the city chose a price for the per unit waste collect that is very low 13 then the amount

of garbage collected would be high :1. The reason for this is that it doesn;t cost much to

throw away the garbage so why would Torontonians be motivated to recycle. %ase on the

diagram as the price increase the amount of garbage collected decreases. 7hen setting

the price per container there are few costs that need to be considered these are the

administrative, collection, disposal and material handling cost. The administration cost

includes public outreach, enforcement, and billing and customer service. <ollection costs

include collecting trash and recyclables, as well as labor and e*uipment costs and




contract payments. 6isposal and material handling fee include fees for landfill disposal or

waste combustion and costs for materials recovery facilities. To arrive at the optimum

cost per container you need to have an estimate of these costs for the year and the also an

estimate of the total garbage that will be collected for the year. %ase on this the optimum

price will be selected. This will lead to an increase in recycling. The price must be fair so

that they are willing to pay to throw away their garbage. Also the law must me fully

enforce and monitor to prevent illegal dumping.

4ouseholds that desire to minimi-e waste disposal costs in a AT pricing regime may

reduce the amount of waste generated, dump its trash unlawfully or participate in the

local recycling and yard waste collection programs. 4ouseholds also may reduce the

amount of waste disposed by reusing certain items or by changing purchasing behavior.

+or example, they might buy fewer discretionary items products that have less packaging,

or purchase more products that have recyclable packaging #3. 4ouseholds also may

recycle more of the materials that are included in local collection programs.

Appling a pay as you throw system will be met with some resistance. Theses include=

• 'llegal dumping

• AT is regressive>lowincome resident feel greater impact

• )verstuffing of containers

• ?ack of support from private waste hauler

These problems can be solve by educating the residents about the program and develop

an enforcement plan. +or low income family you can offer them rebates, coupons or

discounts. To minimi-e over weight set the weight limit for the containers. As for the

hauler get them involve in the planning process.




7ith increase in recycling the city will be able to prolong the life of existing landfills and

postpone the need to locate new disposal facilities. ollution would be reduced from the

extraction of raw materials.

'f the city of Toronto really want to increase it recycling program they best option is to

invest in AT program. This will only achieve it ob&ective if the best price is select that

take into consideration all the factors such as the administrative, collection, disposal and

material handling cost

Reference




1. %auer, 5cott and arie ?ynn iranda. 1@@!. The urban performance of unit

pricing= Ananalysis of variable rates for residential garbage collection in urban

areas. eport prepared for the )ffice of olicy, lanning, and valuationB The

C.5. nvironmental rotection Agency.2. %urgiel, Donathan and aymond andall. 1@@E. Fational unitbased pricing

survey results. http=>>www.epa.gov>payt>paytsurv.wpd

3. <anterbury, Danice. 1@@E. 4ow to succeed with pay as you throw. %io<ycle G@.

no.12= G0G$.

4. breo, AngelaB Dames 4ersheyB Doanne Hining. 1@@@. educing solid waste=

?inkingrecycling to environmentally responsible consumerism. nvironment and

%ehavior G1, no. 1= 10I1G$

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What is the Best Price for Per Unit of Waste Collected Given That Main Object is to Increase Recycling