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.
Industrialization spurred demand for affordable materials; aside from rags, ferrous scrap metals were coveted as they were cheaper to acquire than was virgin ore. Railroads both purchased and sold scrap metal in the 19th century, and the growing steel and automobile industries purchased scrap in the early 20th century. Many secondary goods were collected, processed, and sold by peddlers who combed dumps, city streets, and went door to door looking for discarded machinery, pots, pans, and other sources of metal. By World War I, thousands of such peddlers roamed the streets of American cities, taking advantage of market forces to recycle post-consumer materials back into industrial production.
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.
The glass, lumber, wood pulp, and paper manufacturers all deal directly in commonly recycled materials. However, old rubber tires may be collected and recycled by independent tire dealers for a profit.
There are some ISO standards relating to recycling such as ISO 15270:2008 for plastics waste and ISO 14001:2004 for environmental management control of recycling practice.
Recyclable materials include many kinds of glass, paper, metal, plastic, textiles, and electronics. Although similar in effect, the composting or other reuse of biodegradable waste—such as food or garden waste—is not typically considered recycling. Polystyrene recycling. Materials to be recycled are either brought to a collection center or picked up from the curbside, then sorted, cleaned, and reprocessed into new materials bound for manufacturing.