Costs, Economics, and Benefits: Curbside Recycling, the Next Generation

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California Integrated Waste Management Board

Average Costs of Curbside Recycling

The SWANA study of more than 110 California communities found an average curbside recycling cost of about $2.40 per household per month. This information is somewhat weighted toward larger communities. Combined curbside recycling and yard waste program costs showed patterns of lower costs in communities with the following characteristics:

Older recycling programs.

More suburban or rural areas.

Lower population areas.

Areas that used mixed waste MRFs.

However, examining the services included in curbside recycling rates may not provide a clear understanding of the comparative program costs. This is because of the many different ways communities have chosen to charge for this service. In some communities, there is no separate charge for curbside recycling. Program cost estimates provided in these instances do not necessarily equal the actual costs.

Other communities may charge for curbside recycling, but that charge may not equal the full cost of providing the service. The charges may be set based on a combination of costs and perceptions about appropriate levels for the charge (or what neighboring communities charge).

Relationship of Curbside Recycling Rates and Garbage Rates

Prices proposed by haulers as part of combined residential and commercial service often subsidize residential garbage and/or recycling rates by commercial ratepayers. The actual costs for these services are often viewed as proprietary. Therefore, how accurately the rates proposed reflect the actual cost of service is unknown.

Higher garbage rates and higher differentials in pay-as-you-throw rates continue the incentive to increase recycling and waste prevention (although rates that are twice as high do not lead to twice the recycling).

Following are two arguments for and against embedding the costs of recycling programs in garbage rates:

Embedding recycling costs in garbage fees adds to the “costs” in the garbage rates. The differentials for additional service can be made higher, providing a stronger incentive for recycling. The California SWANA study indicates that embedded fees were associated with higher recycling rates.

If recycling is charged separately, low disposers will have higher bills and high disposers will have lower bills than if the costs for the program were embedded in the garbage fee. Keeping a separate charge for recycling provides a signal to residents that recycling is not free. Solid waste charges vary widely across the state.

In the San Francisco Bay Area, rates in 1999 for 30 gallons of service (with other programs included) varied from just under $7 to almost $24 monthly for weekly collection service. The California SWANA study found an average “garbage-only” cost statewide of about $15.40 per household per month. These costs tended to be lower in urban and high population areas where there was more competition for services.