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.
In a 1996 article for The New York Times, John Tierney argued that it costs more money to recycle the trash of New York City than it does to dispose of it in a landfill. Tierney argued that the recycling process employs people to do the additional waste disposal, sorting, inspecting, and many fees are often charged because the processing costs used to make the end product are often more than the profit from its sale. Tierney also referenced a study conducted by the Solid Waste Association of North America (SWANA) that found in the six communities involved in the study, "all but one of the curbside recycling programs, and all the composting operations and waste-to-energy incinerators, increased the cost of waste disposal."
The military recycles some metals. The U.S. Navy's Ship Disposal Program uses ship breaking to reclaim the steel of old vessels. Ships may also be sunk to create an artificial reef. Uranium is a very dense metal that has qualities superior to lead and titanium for many military and industrial uses. The uranium left over from processing it into nuclear weapons and fuel for nuclear reactors is called depleted uranium, and it is used by all branches of the U.S. military use for armour-piercing shells and shielding.
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.
Container deposit legislation involves offering a refund for the return of certain containers, typically glass, plastic, and metal. When a product in such a container is purchased, a small surcharge is added to the price. This surcharge can be reclaimed by the consumer if the container is returned to a collection point. These programs have been very successful, often resulting in an 80 percent recycling rate. Despite such good results, the shift in collection costs from local government to industry and consumers has created strong opposition to the creation of such programs in some areas.