Positive results for French PAYT

A recent study of the introduction of pay-as-you-throw (PAYT) schemes in France shows such schemes result in a reduction in residual waste and an increased recycling rate.

The report on the study’s findings, ‘Incentive pricing of household waste management: What is the impact on amounts collected?’, has been published by France’s Sustainable Development General Commission (CGDD).

In 2013, 5.4 million French residents across different communities took part in PAYT schemes.

The report is the first assessment of the impact of an incentive-based waste collection system and includes details and complete methodology of the study performed.

According to the report, the introduction of PAYT systems in France would result in 28 per cent lower residual waste production and lead to a 33 per cent increase in the sorting of newspapers, magazines and packaging with no reduction in the quality of recyclate produced.

Moreover, the positive effects of PAYT could be seen up to a year prior to the implementation of variable rates, the report claims, due to the communication programmes associated and this effect would be maintained after the implementation of the system.

Aid has accelerated implementation of PAYT

Previous pricing systems for waste collection in France did not depend on the amount of waste produced and therefore provided no incentive to reduce residual waste production or increase recycling, according to the report.

However, since 2009, financial and technical aid has been available from the French Environment and Energy Management Agency (ADEME) for communities to establish PAYT systems.

Three different types of aid exist: payment of up to 70 per cent of the cost of feasibility studies to a maximum of €100,000 (£77,150); a lump sum aid to establish such systems up to a max of €1 million (£771,500); and investment aid for equipment for monitoring waste collection services.

This aid has accelerated the uptake of PAYT schemes, especially in rural communities, and has even improved the practices of neighbouring communities who have started to adopt the same practices.

According to the report, PAYT has positive effects, regardless of the particular technique chosen and even the act of communicating such a system has positive effects.

An increase in negative behaviour resulting from the scheme has not been noted in the trials, according to the report, which suggests that the benefits of a PAYT system outweighs any disadvantages.

An objective to expand such schemes has been included in the Energy Transition for Green Growth law, which aims to cover 15 million by 2020 and 25 million by 2025.

Incentive pricing “a matter of controversy”

Writing in the preface to the report, Professor Matthew Glachant, Director of Industrial Economics Centre, CERNA, commented:  ‘For 10 years, incentive pricing of the public service of municipal waste management has been a matter of controversy in the public debate. Some see it as a panacea to reduce waste and increase collection. Others deny its effects and emphasise the cost of implementation and the risk of the development of antisocial behaviour. Yet five million French are now subject to this form of pricing. It is therefore possible to perform an ex post evaluation of these experiences. There is great merit in this job. Using rigorous methods of analysis, it does not settle all the questions, but provides answers to many of them. It will be read, I hope, for the greatest number and provide objective evidence for a debate currently based on anecdote and prejudice.’

The full report (in French) is available from the French Environment Ministry’s website.