Economic impacts of municipal recycling

Abstract

Recycling efforts recovered about 55 million tons of municipal solid waste through approximately 9,000 curbside recycling programs and about 10,000 drop-off centers in 1996 (U.S. Environmental Protection Agency 1998). We investigate economic impacts of this activity using state-level data wherever possible. Our results indicate that, while recycling tends to increase waste management costs, the spending creates an important economic stimulus for the processing and collection industries. These industries can have a small positive effect on economic development. Local officials should be cognizant of the total economic impact of recycling as well as its consequences for the distribution of income.