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.
In some cases, the cost of recyclable materials also exceeds the cost of raw materials. Virgin plastic resin costs 40 percent less than recycled resin. Additionally, a United States Environmental Protection Agency (EPA) study that tracked the price of clear glass from July 15 to August 2, 1991, found that the average cost per ton ranged from $40 to $60, while a USGS report shows that the cost per ton of raw silica sand from years 1993 to 1997 fell between $17.33 and $18.10.
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.
Plastic products are printed with numbers 1–7 depending on the type of resin. Type 1 plastic, PET (or PETE): polyethylene terephthalate, is commonly found in soft drink and water bottles. Type 2, HDPE: high-density polyethylene is found in most hard plastics such as milk jugs, laundry detergent bottles, and some dishware. Type 3, PVC or V (vinyl), includes items like shampoo bottles, shower curtains, hoola hoops, credit cards, wire jacketing, medical equipment, siding, and piping. Type 4, called LDPE, or low-density polyethylene, is found in shopping bags, squeezable bottles, tote bags, clothing, furniture, and carpet. Type 5 is PP which stands for polypropylene and makes up syrup bottles, straws, Tupperware, and some automotive parts. Type 6 is PS: polystyrene and makes up meat trays, egg cartons, clamshell containers and compact disc cases. Type 7 includes all other plastics like bulletproof materials, 3- and 5-gallon water bottles, and sunglasses.Types 1 and 2 are the most commonly recycled.