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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.

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.

Some industries, like the renewable energy industry and solar photovoltaic technology in particular, are being proactive in setting up recycling policies even before there is considerable volume to their waste streams, anticipating future demand during their rapid growth.

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.

Tierney also points out that "the prices paid for scrap materials are a measure of their environmental value as recyclables. Scrap aluminum fetches a high price because recycling it consumes so much less energy than manufacturing new aluminum."

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