Is Municipal Solid Waste Recycling Economically Efficient?

It has traditionally been argued that recycling municipal solid waste (MSW) is usually not economically viable and that only when externalities, long-term dynamic considerations, and/or the entire product life cycle are taken into account, recycling becomes worthwhile from a social point of view. This article explores the results of a wide study conducted in Israel in the years 2000–2004. Our results reveal that recycling is optimal more often than usually claimed, even when externality considerations are ignored.