Recycling saves money by reducing the costs of production during manufacturing through the use of already gathered raw materials. This reduction comes from reduced shipping costs, savings in disposal space and savings in the amount of energy required to mine or manufacture new raw materials for use.
In addition to the direct cost reductions during manufacturing, recycling has several side benefits that reduce costs. Recycling materials such as cardboard, paper, glass or metal erases the need to create new material for production, allowing for the conservation of raw materials for future use when recycled materials are unavailable. This reduces the prices of raw materials as their use is extended, avoiding scarcity.
Another side benefit of recycling is a lowering of pollution caused by gathering or creating the raw materials needed for manufacturing. Using recycled plastic, for example, reduces the need to use additional oil reserves, which lowers the chance of oil spills. This in turn lowers the cost of cleanup related to a spill. The same effect is seen with recycled paper or cardboard, which reduces the need for deforestation, which leads to a reduction in costs for replanting trees for later use. Making paper from recycled fibers also reduces water pollution as well as air pollution related to creating paper from raw wood. This in turn lowers the cost of environmental cleanup.