Its comments come before the release of a report it commissioned entitled A Zero Waste UK, due to be published this autumn ahead of the local government white paper and new Waste Strategy.
Written by Green Alliance, it recommends that local authorities be given powers to charge a pay-as-you-throw fee for collecting un-recyclable waste.
IPPR director Nick Pearce said: Our European neighbours have shown that where charges are common place, recycling rates will rise. But to make sure any new charging scheme for rubbish collection is fair, it needs be accompanied by a reduction in council tax and an improvement in recycling facilities.
Backing its recommendations the report cites European examples such as Germany where some local areas charge around 18 pence per kilo for the collection of non-recycled rubbish.
Green Alliance associate Julie Hill said: There are few better routes to higher recycling than through giving householders financial incentives. They are a proven, positive and logical way of changing our throwaway society.