The report authors observed that, as metals are inherently recyclable, the metals stocks in society can serve as huge mines above ground. However, they found that the recycling rates of many metals are very low. The report warned that the recycling rates of some rare metals used in applications such as mobile phones, battery packs for hybrid cars and fuel cells, are so low that unless future end-of-life recycling rates are dramatically stepped up these critical metals will become unavailable for use in modern technology.
In 2003, the city of Santa Clarita, California, was paying $28 per ton to put garbage into a landfill. The city then adopted a mandatory diaper-recycling program that cost $1,800 per ton.
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.
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.
Many economists favor a moderate level of government intervention to provide recycling services. Economists of this mindset probably view product disposal as an externality of production and subsequently argue government is most capable of alleviating such a dilemma.