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 Energy Information Administration (EIA) states on its website that a paper mill uses 40 percent less energy to make paper from recycled paper than it does to make paper from fresh lumber. Some critics argue that it takes more energy to produce recycled products than it does to dispose of them in traditional landfill methods, since the curbside collection of recyclables often requires a second waste truck. However, recycling proponents point out that a second timber or logging truck is eliminated when paper is collected for recycling, so the net energy consumption is the same. An Emergy life-cycle analysis on recycling revealed that fly ash, aluminum, recycled concrete aggregate, recycled plastic, and steel yield higher efficiency ratios, whereas the recycling of lumber generates the lowest recycle benefit ratio. Hence, the specific nature of the recycling process, the methods used to analyse the process, and the products involved affect the energy savings budgets.
In the strictest sense, recycling of a material would produce a fresh supply of the same material—for example, used office paper would be converted into new office paper, or used foamed polystyrene into new polystyrene. However, this is often difficult or too expensive (compared with producing the same product from raw materials or other sources), so "recycling" of many products or materials involves their reuse in producing different materials (e.g., paperboard) instead. Another form of recycling is the salvage of certain materials from complex products, either due to their intrinsic value (e.g., lead from car batteries, or gold from computer components), or due to their hazardous nature (e.g., removal and reuse of mercury from various items). Critics dispute the net economic and environmental benefits of recycling over its costs, and suggest that proponents of recycling often make matters worse and suffer from confirmation bias. Specifically, critics argue that the costs and energy used in collection and transportation detract from (and outweigh) the costs and energy saved in the production process; also that the jobs produced by the recycling industry can be a poor trade for the jobs lost in logging, mining, and other industries associated with virgin production; and that materials such as paper pulp can only be recycled a few times before material degradation prevents further recycling. Proponents of recycling dispute each of these claims, and the validity of arguments from both sides has led to enduring controversy.
Recycling bins are a common element of municipal kerbside collection programs, recycling quebec which frequently distribute the bins to encourage participation.
In certain areas there is also a recycling service, often with one or more dedicated bins intended to receive items that can be recycled into new products. These bins are sometimes separated into different categories (usually represented by colours) which determine what materials can be inserted into the bin. The contents of the bins are taken to a recycling plant to be processed, and there are various systems for recycling-bin collection: single-bin-combined stream systems, multiple-bin systems, and cyclic collections with different materials collected on different days.