Exploring the economics of recycling in a dynamic global context

Recycling is generally considered an important strategy for alleviating the pressures of society on the environment while creating employment and attracting investments. In recent years many countries have experienced large increases in recycling. This chapter on the economics of recycling aims to identify the main economic drivers of recycling, address the economic effects of recycling-related activities, and demonstrate the effectiveness of economic policies promoting recycling. The chapter demonstrates how recycling takes place in a volatile, dynamic, and globalizing world, which complicates the projections in future developments in the recycling sector. Moreover, the chapter describes which private and external costs of recycling-related activities need to be considered and how these effects can be valued in economic terms. Finally, the most important economic instruments to promote recycling are identified and explained.