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Sustainable waste management presents a critical global challenge, necessitating the development of strategies for waste reduction and enhanced recycling. This study explores the impact of pay-as-you-throw tariffs (PAYTT) on promoting sustainable urban waste management. Propensity score matching was employed to analyse data from 7583 Italian municipalities. The study assesses the effects of PAYTT on both total and unsorted urban waste and evaluates their influence on the quantity and quality of separate waste collection. The findings indicate that the implementation of PAYTT effectively aligns with EU waste hierarchy policies. Municipalities adopting PAYTT experience reduced total and unsorted waste generation, along with improved quantity and quality of separate waste collections. Consequently, PAYTT holds significant potential for widespread application throughout the EU, contributing to enhanced separate waste collection efforts., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2023 The Authors. Published by Elsevier Ltd.. All rights reserved.)