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The recycling of waste electrical and electronic equipment in India and China generates a significant amount of pollution. Informal recycling in an underground economy of these countries has generated an environmental and health disaster. High levels of lead (Pb), polybrominated diphenylethers (PBDEs), polychlorinated dioxins and furans, as well as polybrominated dioxins and furans (PCDD/Fs and PBDD/Fs) concentrated in the air, bottom ash, dust, soil, water and sediments in areas surrounding recycling sites. Critics also argue that while recycling may create jobs, they are often jobs with low wages and terrible working conditions. These jobs are sometimes considered to be make-work jobs that don't produce as much as the cost of wages to pay for those jobs. In areas without many environmental regulations and/or worker protections, jobs involved in recycling such as ship breaking can result in deplorable conditions for both workers and the surrounding communities.

In some cases, the cost of recyclable materials also exceeds the cost of raw materials. Virgin plastic resin costs 40 percent less than recycled resin.[56] Additionally, a United States Environmental Protection Agency (EPA) study that tracked the price of clear glass from July 15 to August 2, 1991, found that the average cost per ton ranged from $40 to $60, while a USGS report shows that the cost per ton of raw silica sand from years 1993 to 1997 fell between $17.33 and $18.10.

Legislation has also been used to increase and maintain a demand for recycled materials. Four methods of such legislation exist: minimum recycled content mandates, utilization rates, procurement policies, recycled product labeling.

Container deposit legislation involves offering a refund for the return of certain containers, typically glass, plastic, and metal. When a product in such a container is purchased, a small surcharge is added to the price. This surcharge can be reclaimed by the consumer if the container is returned to a collection point. These programs have been very successful, often resulting in an 80 percent recycling rate. Despite such good results, the shift in collection costs from local government to industry and consumers has created strong opposition to the creation of such programs in some areas.

Container deposit legislation involves offering a refund for the return of certain containers, typically glass, plastic, and metal. When a product in such a container is purchased, a small surcharge is added to the price. This surcharge can be reclaimed by the consumer if the container is returned to a collection point. These programs have been very successful, often resulting in an 80 percent recycling rate. Despite such good results, the shift in collection costs from local government to industry and consumers has created strong opposition to the creation of such programs in some areas.

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