Financial instruments are designed to incentivize waste producers to divert waste from landfills toward recycling. Financial instruments include both rewards (recycling incentives) and charges (pay-as-you-throw and deposit refund schemes). Recycling incentives schemes are essentially different from pay-as-you-throw (PAYT) schemes as they consist of payments or rewards to encourage people to recycle more, typically with vouchers for individuals, vouchers for communities or payments to individuals. In addition to direct incentives in the form of vouchers, an effective recycling incentive is also the reduction of waste fees for residents willing to separate more waste at source or when waste recycling targets at local level are achieved. From the economic point of view, these instruments are preferable to direct regulation due to their greater efficiency.