The amount of money actually saved through recycling depends on the efficiency of the recycling program used to do it. The Institute for Local Self-Reliance argues that the cost of recycling depends on various factors around a community that recycles, such as landfill fees and the amount of disposal that the community recycles. It states that communities start to save money when they treat recycling as a replacement for their traditional waste system rather than an add-on to it and by "redesigning their collection schedules and/or trucks."
Economist Steven Landsburg has suggested that the sole benefit of reducing landfill space is trumped by the energy needed and resulting pollution from the recycling process. Others, however, have calculated through life cycle assessment that producing recycled paper uses less energy and water than harvesting, pulping, processing, and transporting virgin trees. When less recycled paper is used, additional energy is needed to create and maintain farmed forests until these forests are as self-sustainable as virgin forests.
Tierney also points out that "the prices paid for scrap materials are a measure of their environmental value as recyclables. Scrap aluminum fetches a high price because recycling it consumes so much less energy than manufacturing new aluminum."
In a 2002 article for The Heartland Institute, Jerry Taylor, director of natural resource studies at the Cato Institute, wrote, "If it costs X to deliver newly manufactured plastic to the market, for example, but it costs 10X to deliver reused plastic to the market, we can conclude the resources required to recycle plastic are 10 times more scarce than the resources required to make plastic from scratch. And because recycling is supposed to be about the conservation of resources, mandating recycling under those circumstances will do more harm than good."
The Energy Information Administration (EIA) states on its website that a paper mill uses 40 percent less energy to make paper from recycled paper than it does to make paper from fresh lumber. Some critics argue that it takes more energy to produce recycled products than it does to dispose of them in traditional landfill methods, since the curbside collection of recyclables often requires a second waste truck. However, recycling proponents point out that a second timber or logging truck is eliminated when paper is collected for recycling, so the net energy consumption is the same. An Emergy life-cycle analysis on recycling revealed that fly ash, aluminum, recycled concrete aggregate, recycled plastic, and steel yield higher efficiency ratios, whereas the recycling of lumber generates the lowest recycle benefit ratio. Hence, the specific nature of the recycling process, the methods used to analyse the process, and the products involved affect the energy savings budgets.