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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.

Many recycling bins are designed to be easily recognizable, and are marked with slogans promoting recycling on a blue or green background. Others are intentionally unobtrusive. Bins are sometimes different colors so that user may differentiate between the types of materials to be placed in them. While there is no universal standard, the color blue is commonly used to indicate a bin is for recycling in public settings.

Recycling of plastics is more difficult, as most programs can't reach the necessary level of quality. Recycling of PVC often results in downcycling of the material, which means only products of lower quality standard can be made with the recycled material. A new approach which allows an equal level of quality is the Vinyloop process. It was used after the London Olympics 2012 to fulfill the PVC Policy.

 

Levels of metals recycling are generally low. In 2010, the International Resource Panel, hosted by the United Nations Environment Programme (UNEP) published reports on metal stocks that exist within society and their recycling rates. The Panel reported that the increase in the use of metals during the 20th and into the 21st century has led to a substantial shift in metal stocks from below ground to use in applications within society above ground. For example, the in-use stock of copper in the USA grew from 73 to 238 kg per capita between 1932 and 1999.

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.

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