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Recycling is typically advocated on economic grounds, yet at current prices, it does not pay. There are some reasons to think that some of these prices are inefficient, but the main problem is that recycling substitutes labor for energy, virgin materials, and landfill space. Advocates of recycling argue that this use of labor has environmental consequences that are less harmful than the one‐time use of recyclable resources. Recycling should be encouraged by legal and business policy mandates, as well as by increasing taxes on virgin resources.

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