A participatory waste policy reform for the hotel sector: evidence of a progressive Pay-As-You-Throw tariff

Abstract

The hotel industry is increasingly developing voluntary measures to tackle waste generation, but they fall short of the problems faced by municipal waste services in many tourist destinations. This paper exemplifies how a collaboratively designed waste tariff reform for hotels in a tourism-intensive municipality can achieve a sustainable waste management system through stronger collective action, involving not only the hotel sector but also the city council and waste management companies. The co-created Pay-As-You-Throw tariff meets the demands of the stakeholders by establishing a progressive waste charge that penalizes hotels based on their waste generation intensity, defined as the ratio between waste flows and size. In addition, a competition system is introduced by imposing penalties (or rewards) according to whether the waste generation intensity is above (or below) the sector average during the settlement period, incentivizing waste prevention, recycling and encouraging long-term investment in sustainable waste management. The tariff is consistent with the principles of the EU’s Circular Economy Package and offers hotels a competitive advantage, while ensuring a progressive waste charging system and waste management cost recovery. Empirical results of the co-created tariff show a reduction in waste generation intensity and signs of increased recycling rates.