Beijing could save hundreds of millions of yuan a year by introducing policies on sorting household waste and reducing the amount of garbage that is incinerated, new research has found.

The annual social cost of the capital burning household trash is about 2 billion yuan ($294 million), according to a report released on Wednesday by the Beijing Academy of Development and Strategy.

However, the academy, which is affiliated to Renmin University of China, estimates this could be cut by as much as 64 percent by revamping waste treatment and introducing a classification system.