In pre-industrial times, there is evidence of scrap bronze and other metals being collected in Europe and melted down for perpetual reuse. In Britain dust and ash from wood and coal fires was collected by 'dustmen' and downcycled as a base material used in brick making. The main driver for these types of recycling was the economic advantage of obtaining recycled feedstock instead of acquiring virgin material, as well as a lack of public waste removal in ever more densely populated areas. In 1813, Benjamin Law developed the process of turning rags into 'shoddy' and 'mungo' wool in Batley, Yorkshire. This material combined recycled fibres with virgin wool. Entreprise de recyclage The West Yorkshire shoddy industry in towns such as Batley and Dewsbury, lasted from the early 19th century to at least 1914.
In some U.S. states, a program called RecycleBank pays people to recycle, receiving money from local municipalities for the reduction in landfill space which must be purchased. It uses a single stream process in which all material is automatically sorted.
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.
There is some debate over whether recycling is economically efficient. However, recycling materials has been proven to be beneficial to the economy as it can create jobs for people in the US. It is said that dumping 10,000 tons of waste in a landfill creates six jobs, which recycling 10,000 tons of waste can create over 36 jobs. According to the U.S. Recycling Economic Informational Study, there are over 50,000 recycling establishments that have created over a million jobs in the US. Two years after New York City declared that implementing recycling programs would be a drain on the city, New York City leaders realized that an efficient recycling system could save the city over $20 million. Municipalities often see fiscal benefits from implementing recycling programs, largely due to the reduced landfill costs. A study conducted by the Technical University of Denmark according to the Economist found that in 83 percent of cases, recycling is the most efficient method to dispose of household waste. However, a 2004 assessment by the Danish Environmental Assessment Institute concluded that incineration was the most effective method for disposing of drink containers, even aluminium ones.
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.