A two-part tariff metering and charging model of municipal solid waste for residents in Shanghai,China

Abstract

The implementation of a metering and charging system for municipal solid waste (MSW) presents a promising policy avenue for source reduction. But few cities have applied the metering and charging system of MSW for residents in China. The aim of this study is to propose a metering and charging model of MSW for residents by taking Shanghai, a megacity expected to introduce the practice, as a case study. A metering and charging model of MSW for residents based on two-part tariff (MC-TPT) was proposed, which integrated the advantages of both fixed rate method and quantity-based method. The key parameters for MC-TPT model, as well as the economic feasibility were also considered. Results indicate that key parameters for MC-TPT model, including the average profit margin, average annual fixed cost and average annual operating cost, are estimated at 12%, 169.9 million RMB year⁻¹ and 716.5 million RMB year⁻¹, respectively. The pricing structure of two-part tariff comprises a fixed fee of 17.8 RMB month⁻¹ and a specific fee of 289.8 RMB (tonne·month)⁻¹. Furthermore, the study explores metering and charging criteria for MSW across five household population levels. Economic feasibility analyses reveal that, despite an increase in MSW disposal fees under the proposed scheme, the resulting relative charging rate remains within an acceptable range. This study contributes to the academic discourse on sustainable MSW management practices, particularly in the context of megacities like Shanghai.