In a 2007 article, Michael Munger, chairman of political science at Duke University, wrote that "if recycling is more expensive than using new materials, it can't possibly be efficient.... There is a simple test for determining whether something is a resource... or just garbage... If someone will pay you for the item, it's a resource.... But if you have to pay someone to take the item away,... then the item is garbage."
Certain countries trade in unprocessed recyclates. Some have complained that the ultimate fate of recyclates sold to another country is unknown and they may end up in landfills instead of reprocessed. According to one report, in America, 50–80 percent of computers destined for recycling are actually not recycled. There are reports of illegal-waste imports to China being dismantled and recycled solely for monetary gain, without consideration for workers' health or environmental damage. Although the Chinese government has banned these practices, it has not been able to eradicate them. In 2008, the prices of recyclable waste plummeted before rebounding in 2009. Cardboard averaged about £53/tonne from 2004–2008, dropped to £19/tonne, and then went up to £59/tonne in May 2009. PET plastic averaged about £156/tonne, dropped to £75/tonne and then moved up to £195/tonne in May 2009. Certain regions have difficulty using or exporting as much of a material as they recycle. This problem is most prevalent with glass: both Britain and the U.S. import large quantities of wine bottled in green glass. Though much of this glass is sent to be recycled, outside the American Midwest there is not enough wine production to use all of the reprocessed material. The extra must be downcycled into building materials or re-inserted into the regular waste stream
Industrialization spurred demand for affordable materials; aside from rags, ferrous scrap metals were coveted as they were cheaper to acquire than was virgin ore. Railroads both purchased and sold scrap metal in the 19th century, and the growing steel and automobile industries purchased scrap in the early 20th century. Many secondary goods were collected, processed, and sold by peddlers who combed dumps, city streets, and went door to door looking for discarded machinery, pots, pans, and other sources of metal. By World War I, thousands of such peddlers roamed the streets of American cities, taking advantage of market forces to recycle post-consumer materials back into industrial production.
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.
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."