What Is Rate Structure Design?
Rate structure design (RSD) is the process by which you determine the price you charge per unit of municipal solid waste (MSW) set out by residents for collection. Through your PAYT rate structure, you introduce an economic incentive for residents to reduce waste and recycle more. An effective RSD aligns the power of this economic incentive with your community’s specific MSW goals. It is essential, therefore, to clearly define those goals before implementing PAYT. The first section of the RSD booklet discusses the importance of goal setting and how it can help determine your pricing system, container type, and public education strategy. This section also outlines the general steps involved in RSD and discusses the three types of PAYT pricing systems in detail (i.e., proportional, variable, multi-tiered). Drawing From Comparable Communities The second section of the booklet discusses one method for setting PAYT rates-drawing from comparable communities. Some communities start by examini
