Dresden, Germany, introduced a Pay-as-you-throw (PAYT) system to better regulate waste disposal and management.
The idea is to make consumers aware of how much waste they create, and to make the cost of waste disposal fair for the consumer.
With the PAYT system, citizens only pay for the amount of waste they need removed. Before, waste disposal was included in taxes and municipal fees.
This meant that everybody paid the same amount, no matter how much they recycled or threw away.
Since introducing the PAYT system in 1994, the amount of waste generated in Dresden has dropped by an impressive 50% despite the fact that income and consumption have steadily increased!
Consumers have become aware of how much waste they create as the waste is weighed, and disposal is charged per kilogram of waste.
The citizens now make compost and recycle waste instead of unthinkingly throwing everything in the bin. This inevitably has had a positive effect on the environment as not everything is dumped on landfills anymore.
Everybody is very happy with the system because it's fair. Each individual household is only charged for what the throw away and many households can now save money, as they no longer have to pay a set municipal fee.