Abstract

Rapid population growth, combined with increasingly consumption-oriented lifestyles and the intensification of economic activities, has led to a significant rise in natural resource use and municipal solid waste generation, posing major challenges to environmental sustainability. In response to these pressures, the circular economy has emerged as a strategic framework aimed at decoupling economic growth from resource consumption by promoting waste prevention, efficient resource use, and the recovery and regeneration of materials throughout their life cycle. This study presents the outcomes of a circular economy–oriented waste management initiative, namely the implementation of a Pay-as-You-Throw system for municipal solid waste collection in the municipality of Guimarães, Portugal. The analysis assesses the system’s effectiveness in reducing landfill disposal and encouraging waste separation and recycling practices among households. The results indicate that the Pay-as-You-Throw system has contributed to a measurable decrease in the volume of waste sent to landfills, alongside an improvement in recycling performance, thereby reducing environmental pollution and supporting the conservation of natural resources. Furthermore, the implementation of the system has generated economic benefits through more efficient waste management operations and has produced positive social outcomes by fostering greater environmental awareness and behavioural change among residents. Overall, the findings demonstrate that Pay-as-You-Throw systems can serve as an effective policy instrument within a circular economy framework, contributing to the development of more sustainable urban systems and supporting broader environmental and resource efficiency objectives.