Sir, my expertise in this area is limited to the waste management practices of developing countries as opposed to the developed countries, where the question of subsidy would definitely support the economic arrangements to stimulate RL. In developing countries, the recycling process is yet to establish itself at market level.

What I could gather during my study of MSW is that so long as the cost to obtain virgin materials is cheaper than the recycling costs (including obtaining recyclables, transporting it, and processing it), industries would not bother if raw material is virgin one, as economics would drive the demand.

One of the ways to make recyclability economically better option could also be to offer incentives (rebates, reduction in taxes, tax reliefs) to the consumer industries, who are using recycled materials. Other than the ethical aspects that they might offer to the consumers, this would support overall lowering of ownership cost of the products.

The other as you have said could also be to offer financial support to recyclers. Only problem with that is, consumer industries might not always be interested to work with recycled materials, unless they can achieve better financial gain, which recyclers might not be ready to pass on to the consumers.

 Dear Somnath,

Thank you kindly for your ideas.. You are right with the comparison of prices between virgin and recycled material. I was thinking of the costs of collection, tipping and landfill maintenance. If they are higher than a subsidy aimed at getting the materia out of town, then the subsidy seems to make sense from the point of view of the municipa budget.. Where the subsidized material would end up is another question that I have no answer for at this time. I am studying the problem and any input is welcome. 

Cheers,

Manfred