How Can Unit Pricing Be Employed and Improve Municipal Waste Management in Shanghai?

Abstract

China is on a transition to waste management charging reform and pursuing effective eco-nomic incentives on an individual level. Pay-As-You-Throw (PAYT)/Unit pricing is recog-nized as an important and effective means to waste prevention and source segregation ren-dered by the government mostly in the developed countries. Following the in-depth case study analysis and the environmental, the study explored the different patterns of implement-ed PAYT schemes and evaluated their outcomes from the perspective of the operability, the political feasibility, the universality, the validity in waste reduction and separation using four cases studies in Europe. With lessons learnt from literature review and experiences from cases studies, the author generates a framework for implementing PAYT principles into waste man-agement services and creates a toolbox for designing tailor-made PAYT programs on a munic-ipal level. With the context analysis of Shanghai and the designing toolbox for PAYT, the author proposed the policy recommendations in a practical way for Shanghai to enhance the on-going waste sorting programs. It also provides recommendations regarding possible issues in implementing. Whilst, this study gives an insight to the policymakers upon the Quantity-Based Charging (QBC) scheme for other cities in China where such charging schemes are absent but advocated by the central government recently.

Popular Abstract

Purpose and Motivation
Waste, its generation, collection and disposal, is a major global challenge in the 21st century. Municipal solid waste management is arguably one of the most important function and ser-vice of cities. The challenges associated with municipal solid waste management are acute in fast growing urban areas in China, particularly in the metropolises of Beijing and Shanghai. As a result of population growth, urbanization and economic development, Shanghai’s waste production is increasing with an annual rate of 10% and expected to nearly double by 2025.
China has proceeded with a waste source separation movement across the country which aims to address the waste challenges in urban areas. However, enhancing the waste-sorting pro-grams requires active public participation. Hence, an important task is to formulate the long-term and high-quality participation in waste sorting. China is initiating a reform to the waste service charging schemes for households and promoting economic incentives for individuals. The pay-as-you-throw (PAYT) principle is argued to be the most prioritized economic in-strument in the countries with high municipal waste management performance. So, in China it is necessary to understand the significance of PAYT in the waste charging reform transition in order to design effective policies and measures. However, the well know PAYT schemes are mostly employed in developed countries and most of the research focuses on the impact evaluation rather than the overall guidelines of design, implementation and evaluation. It is the right time to investigate the long-going PAYT programs and discover their overall pat-terns and outcomes and generate PAYT packages for cities in an attempt to implement them.
Problem Definition
According to the Shanghai authority, the ongoing source separation program has achieved promising results. However, challenges are still severe regarding enhancing separation behav-iour, resolving citizens’ complaints about programs’ inconvenience, and meeting ambitious national “Zero waste city” goals. In the meantime, the central government has encouraged local authorities to offer a variety of economic incentives on an individual level to tackle municipal waste problems by adding “charging reform” into the national solid waste law. To date, however, few studies have completed the proposed PAYT policy recommendations by the Shanghai authorities.
The objective of this paper is to build a case study analysis that will allow unit pricing schemes to be analysed in-depth in the implementation patterns and outcomes. More compel-ling policy recommendations and guidelines for Shanghai municipalities and other key stake-holders can be proposed on a practical level. Three key questions helped to guide the research and development of the practical proposals are:
RQ1: How are unit pricing principles employed in household waste management according to literature review and case studies?
RQ2: What experiences and lessons from the case studies could be relevant to develop the PAYT programs in the context of Shanghai?
RQ3: What tailor-made unit pricing programs would be applicable to municipal waste man-agement in Shanghai and enhance the waste separation programs?
Methodology
To answer the research questions 1 and 2, quantitative research with a literature study and four case studies based in Europe by interviewing key stakeholders was developed to investi-gate the patterns and development of PAYT programs at the municipal level and the out-comes of different pattern options. The most important factors determining the patterns of PAYT programs are motivations and objectives; measures and unit pricing, containers and collection, fee structures and the adoption activities. The patterns of PAYT programs in the studied cases are investigated in accordance with these factors. The benefits and barriers of each PAYT program are considered. The benefits are quantified with selective indicators, such as the total waste quantity per capita, residual waste reduction, and targeted waste segre-gation. The different barriers are described in cases of illegal dumping, waste tourism and complaints from residents. Food waste issues in particular is discussed in the case of Sweden due to their correlation with wet waste problems in Shanghai.
Based on the findings of research questions 1 and 2, a framework of implementing PAYT principles is generated together with a toolbox for designing tailor-made PAYT programs. Thus, Research question 3 is answered with the toolbox package of tailor-made PAYT pro-grams.
Key Findings
RQ1: The operability of PAYT Principles is Diversified in terms of measures, contain-ers and pricing.
The diversity and flexibility are reflected in many aspects: the different measures, the optional containers and collection systems and the adjustable fee structures. But in general, the pat-terns are distinct by the setting of “unit for the measured service” and the “pricing of this unit”.
PAYT programs are broadly applicable and can be adopted without geographical barriers or strict standards. The easiest implementation of PAYT is to start with volume-based system, particularly with bags as the containers. Besides, the system is applicable with changes and can be upgraded accordingly. Common adoption programs are found in studied cases. For in-stance, active stakeholder involvement is vital for successful implementation and mainte-nance of the programs. The convenient facilities for recycling could magnify the effectiveness of PAYT. Moreover, creative development trends are demonstrated in data collection and underground containers
RQ2: General Validity of Effective PAYT Principles is Affirmed but Outcomes Diver-sified within Different Patterns
The general effectiveness of PAYT principles in all cases are well confirmed from different perspective. Gothenburg with weigh-based patters and Zwolle with frequency-based measures specifically confirm a reduction in total waste after implementation of PAYT. Impressively, the average reduction of waste per household is reported to be 70-80 kg per household per year in Zwolle. Instead, programs in Helsingborg achieve outstanding waste sorting perfor-mance in the volume-based system with two-bin-8-compartments containers and curb side collection. Ghent also witness the increased segregation rate for recycles in the pre-paid bag PAYT program with much lower unit price for recyclables and high price for residual waste. These findings indicate an important rule when designing tailor-made program that patterns should be designed according to the motivations and aims of introducing PAYT.
Policy recommendations
Findings from the broader-case studies presented in the paper strongly suggest that the PAYT principles could be implemented to build a more compelling municipal waste management system for enhanced waste prevention and source separation practices in Shanghai and other cities in China with ambitions to start waste sorting. Based on these insights, a set of recommendations for designing tailor made PAYT programs were also identified. Seven steps of implying PAYT principles into the on-going waste management systems are framed out. The tailor-made PAYT programs and the easy start pattern are emphasized. Then the toolbox of designing tailor-made programs is explained in detail in aspects of Targets and Objects, Measures and Unit Pricing (Fee structures), Containers and Collection, and Monitoring, Evaluation, and Adaption.
RQ3: Policy recommendation for Shanghai to imply PAYT principles in a practical phase includes:
(1): Primary aims should be set up with quantified targets on the municipal level;
(2): Design and implement tailor-made PAYT programs on a district or community level;
(3): Volume and/or Frequency-based measures with differentiated unit prices on waste streams are on the prioritized choice for starting;
(4): Start with bags as the container and take a door-to-door collection for recyclables;
(5): Enhancing communication with citizens and evaluation process;
(6): Kitchen waste should manage with extra convenient facilities for collection and disposal.
Options for Expanding Further Studies for Enhanced Accuracy
The study answers the questions regarding the patterns and outcomes of the PAYT pro-grams and policy recommendations for Shanghai to start implementing unit pricing waste service charges on an individual level. Moreover, the findings also help to pinpoint high value data of the barriers to PAYT and several developing trends for greater accuracy and applicability in further studies. For example, the effectiveness of the higher charging rate on waste generation versus the convenience of recycling facilities is worthy to be further studied. And the implication of underground containers as well as the data collection system, are questions with more accuracy.

• author: Li, Lan
• supervisor: Thomas Lindhqvist; Weine Wiqvist
• organization: The International Institute for Industrial Environmental Economics
• course: IMEM01 20201
• year: 2020
• type: H2 - Master's Degree (Two Years)
• subject: Social Sciences
• keywords: Pay As You Throw, Unit Pricing, Municipal Solid Waste Management, Source Separation, Waste Reduction, Recycling Behavior
• publication/series: IIIEE Master Thesis
• report number: 2020:38
• ISSN: 1401-9191
• language: English
• id: 9026151
• date added to LUP: 2020-08-14 09:04:57
• date last changed: 2020-08-14 09:04:57