Villagers have all joined Gaocheng's shareholding economy that runs two cemeteries and revitalizes collectively owned land, real estate and other investment. Each of the villagers received a dividend of more than 35,000 yuan last year.

The rewards system will continue, even though villagers have got the message about the importance of sound domestic waste sorting, Yu says.

In December the provincial people's congress of Zhejiang adopted a regulation on domestic waste sorting, aiming to reduce garbage generation, improve recycling and promote refuse treatment.