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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.

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.

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.

Recycling bins are a common element of municipal kerbside collection programs, reuse which frequently distribute the bins to encourage participation.

Although many government programs are concentrated on recycling at home, a large portion of waste is generated by industry. The focus of many recycling programs done by industry is the cost-effectiveness of recycling. The ubiquitous nature of cardboard packaging makes cardboard a commonly recycled waste product by companies that deal heavily in packaged goods, like retail stores, warehouses, and distributors of goods. Other industries deal in niche or specialized products, depending on the nature of the waste materials that are present.

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