Abstract: Many cities in China are now introducing carbon inclusive mechanism methodologies related to waste classification, but the incentive objects vary across regions. In response to the demand for allocation of carbon emission reduction credits based on different links of the whole-process waste classification, a monetized calculation method was proposed, calculating the proportion of carbon emission reduction contribution for each link based on the incremental investment in each link after waste classification compared to before, serves as the basis for the allocation of carbon emission reduction contribution. Based on data of Shanghai, this article found that waste classification was a typical manifestation of achieving positive environmental externalities through the internalization of residents’ behavioral costs. Wet waste and recyclables generated relatively significant incremental investment in the sorting and disposal stage after waste sorting, which was an important factor affecting residents from maintaining their enthusiasm for waste classification in the initial stage. It also provided the proportion of contribution for different links, such as the residents’ contribution accounting for 70% in the dry and wet waste classification system and 86% in the recyclables classification system. However, in regions where both wages and housing costs are relatively low, and residents have already had a strong habit of submitting/selling recyclables, the contribution ratio of residents will drop to below 50%.

Key words: carbon inclusive mechanism, domestic waste, waste classification, carbon emission reduction credits