In some U.S. states, a program called RecycleBank pays people to recycle, receiving money from local municipalities for the reduction in landfill space which must be purchased. It uses a single stream process in which all material is automatically sorted.
Both minimum recycled content mandates and utilization rates increase demand directly by forcing manufacturers to include recycling in their operations. Content mandates specify that a certain percentage of a new product must consist of recycled material. Utilization rates are a more flexible option: industries are permitted to meet the recycling targets at any point of their operation or even contract recycling out in exchange for tradeable credits. Opponents to both of these methods point to the large increase in reporting requirements they impose, and claim that they rob industry of necessary flexibility.
There is some debate over whether recycling is economically efficient. However, recycling materials has been proven to be beneficial to the economy as it can create jobs for people in the US. It is said that dumping 10,000 tons of waste in a landfill creates six jobs, which recycling 10,000 tons of waste can create over 36 jobs. According to the U.S. Recycling Economic Informational Study, there are over 50,000 recycling establishments that have created over a million jobs in the US. Two years after New York City declared that implementing recycling programs would be a drain on the city, New York City leaders realized that an efficient recycling system could save the city over $20 million. Municipalities often see fiscal benefits from implementing recycling programs, largely due to the reduced landfill costs. A study conducted by the Technical University of Denmark according to the Economist found that in 83 percent of cases, recycling is the most efficient method to dispose of household waste. However, a 2004 assessment by the Danish Environmental Assessment Institute concluded that incineration was the most effective method for disposing of drink containers, even aluminium ones.
Many economists favor a moderate level of government intervention to provide recycling services. Economists of this mindset probably view product disposal as an externality of production and subsequently argue government is most capable of alleviating such a dilemma.