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Composting apartment

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However, comparing the market cost of recyclable material with the cost of new raw materials ignores economic externalities—the costs that are currently not counted by the market. Creating a new piece of plastic, for instance, may cause more pollution and be less sustainable than recycling a similar piece of plastic, but these factors will not be counted in market cost. A life cycle assessment can be used to determine the levels of externalities and decide whether the recycling may be worthwhile despite unfavorable market costs. Alternatively, legal means (such as a carbon tax) can be used to bring externalities into the market, so that the market cost of the material becomes close to the true cost.

Origins of recycpling
Recycling has been a common practice for most of human history, with recorded advocates as far back as Plato in 400 BC. During periods when resources were scarce, archaeological studies of ancient waste dumps show less household waste (such as ash, broken tools and pottery)—implying more waste was being recycled in the absence of new material.

In the past terrorists have left bombs in bins. The bomb is much less likely to be spotted than an unattended bag and the metal bins provide extra shrapnel that injures people nearby when it detonates. For this reason there are no bins in most railway stations, most airports and many shopping centres in the world, or if they are provided they are just a bin bag hanging from a metal hoop.

The military recycles some metals. The U.S. Navy's Ship Disposal Program uses ship breaking to reclaim the steel of old vessels. Ships may also be sunk to create an artificial reef. Uranium is a very dense metal that has qualities superior to lead and titanium for many military and industrial uses. The uranium left over from processing it into nuclear weapons and fuel for nuclear reactors is called depleted uranium, and it is used by all branches of the U.S. military use for armour-piercing shells and shielding.

Fiscal efficiency is separate from economic efficiency. Economic analysis of recycling includes what economists call externalities, which are unpriced costs and benefits that accrue to individuals outside of private transactions. Examples include: decreased air pollution and greenhouse gases from incineration, reduced hazardous waste leaching from landfills, reduced energy consumption, and reduced waste and resource consumption, which leads to a reduction in environmentally damaging mining and timber activity. About 4,000 minerals are known, of these only a few hundred minerals in the world are relatively common. At current rates, current known reserves of phosphorus will be depleted in the next 50 to 100 years. Without mechanisms such as taxes or subsidies to internalize externalities, businesses will ignore them despite the costs imposed on society. To make such nonfiscal benefits economically relevant, advocates have pushed for legislative action to increase the demand for recycled materials. The United States Environmental Protection Agency (EPA) has concluded in favor of recycling, saying that recycling efforts reduced the country's carbon emissions by a net 49 million metric tonnes in 2005. In the United Kingdom, the Waste and Resources Action Programme stated that Great Britain's recycling efforts reduce CO2 emissions by 10–15 million tonnes a year. Recycling is more efficient in densely populated areas, as there are economies of scale involved.

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