Economics

California’s Recycling Crisis Sends Billions of Bottles and Cans Into Landfills

Low prices for scrap are driving recyclers out of business.

About 90 percent of the 8 billion soda cans sold in California every year get turned in for recycling and a 5¢ refund. But cheaper commodity prices, plus lower Chinese demand for America’s used bottles and cans, have upended the economics of the state’s recycling industry. Over the past two years, California’s recycling rate has fallen enough to relegate more than 2 billion containers a year to landfills.

About 700 of the 2,400 redemption centers California had in 2011 have closed, according to CalRecycle, the state’s recycling agency, the majority in the past year. The mostly small companies that run the shedlike centers in parking lots outside grocery stores are being squeezed by a commodity bust that’s lowered the price they receive for recycled glass, plastic, and aluminum. The price they have to pay consumers for this detritus has stayed fairly high. A state subsidy program that was supposed to help make up the difference hasn’t kept up.