Although many Americans regularly separate their trash and recycling, many recyclable materials still end up in the landfill. In some cases, mixing certain materials with your recycling, like plastic bags and Christmas lights, can jam up sorting machines, substantially raising the costs of recycling. In 2018, shortly after announcing it would no longer import plastics and other recyclable materials from the US, China announced a tariff on imported waste paper from the US. (Approximately 40 percent of recyclable paper is exported to China, mostly being converted into packaging for Chinese manufactured products.)
The latest blow to the recycling industry: low oil prices. Recent increases in supply and decreases in demand have led to record low oil and gas prices. While many consumers and firms welcome low gas prices, they can have severe adverse effects on the plastic recycling industry. Since plastics are made from oil, low oil prices mean it is cheaper to produce new plastics. Currently, the cost of producing new plastic has fallen so low, it is less expensive than recycling. As a result, more plastic is making its way to the landfill, and drifting into our waterways. Despite recent gains, this is a major setback for environmental organizations looking to reduce the use of plastics in the economy.
Discussion Questions:
- If the government wishes to reduce plastic use, what are some of the options available to address the impact of low oil prices on the recycling industry?
- What other industries might be negatively affected by low oil prices?
Sources: IdeaStream “Cleveland’s Recyclables, Trash ‘Going To The Same Place,’ Mayor Says” by Nick Castele; WISNEWS “Improperly recycled plastic bags jam up sorting machines” by Adam Mintzer; KJZZ 91.5 “Tariffs And A Trade War Threaten U.S. Paper Recycling” by Heather van Blokland; NBC News “Coronavirus pandemic threatens to undo progress on plastic pollution” by Luke Denne.