In certain areas there is also a recycling service, often with one or more dedicated bins intended to receive items that can be recycled into new products. These bins are sometimes separated into different categories (usually represented by colours) which determine what materials can be inserted into the bin. The contents of the bins are taken to a recycling plant to be processed, and there are various systems for recycling-bin collection: single-bin-combined stream systems, multiple-bin systems, and cyclic collections with different materials collected on different days.
In order to meet recyclers' needs while providing manufacturers a consistent, uniform system, a coding system is developed. The recycling code for plastics was introduced in 1988 by plastics industry through the Society of the Plastics Industry, Inc. Because municipal recycling programs traditionally have targeted packaging—primarily bottles and containers—the resin coding system offered a means of identifying the resin content of bottles and containers commonly found in the residential waste stream.
The amount of energy saved through recycling depends upon the material being recycled and the type of energy accounting that is used. Emergy (spelled with an m) analysis, for example, budgets for the amount of energy of one kind (exergy) that is required to make or transform things into another kind of product or service. Using emergy life-cycle analysis researchers have concluded that materials with large refining costs have the greatest potential for high recycle benefits. Moreover, the highest emergy efficiency accrues from systems geared toward material recycling, where materials are engineered to recycle back into their original form and purpose, followed by adaptive reuse systems where the materials are recycled into a different kind of product, and then by by-product reuse systems where parts of the products are used to make an entirely different product.
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.
For a recycling program to work, having a large, stable supply of recyclable material is crucial. Three legislative options have been used to create such a supply: mandatory recycling collection, container deposit legislation, and refuse bans. Mandatory collection laws set recycling targets for cities to aim for, usually in the form that a certain percentage of a material must be diverted from the city's waste stream by a target date. The city is then responsible for working to meet this target.