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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.

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.

The recycling of waste electrical and electronic equipment in India and China generates a significant amount of pollution. Informal recycling in an underground economy of these countries has generated an environmental and health disaster. High levels of lead (Pb), polybrominated diphenylethers (PBDEs), polychlorinated dioxins and furans, as well as polybrominated dioxins and furans (PCDD/Fs and PBDD/Fs) concentrated in the air, bottom ash, dust, soil, water and sediments in areas surrounding recycling sites. Critics also argue that while recycling may create jobs, they are often jobs with low wages and terrible working conditions. These jobs are sometimes considered to be make-work jobs that don't produce as much as the cost of wages to pay for those jobs. In areas without many environmental regulations and/or worker protections, jobs involved in recycling such as ship breaking can result in deplorable conditions for both workers and the surrounding communities.

A recycling bin (or recycle bin) is a container used to hold recyclables before they are taken to recycling centers. Recycling bins exist in various sizes for use in homes, offices, and large public facilities. Separate containers are often provided for paper, tin or aluminum cans, and glass or plastic bottles.

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