10.2190/UWKR-QW7R-719N-RK98 UWKRQW7R719NRK98 3 Economics of Statewide Recycling: a Critical Review of the California Experience 323 342 20020509 20020509 20020509 20020509 UWKRQW7R719NRK98.pdf http://baywood.metapress.com/link.asp?target=contribution&id=UWKRQW7R719NRK98 4 Walter R. Holman Loyola College, Baltimore, Maryland The state of California has developed an approach to recycling that attempts to overcome the limitations of traditional deposit programs. This approach, initiated by the <i>California Beverage Container Recycling and Litter Reduction Act of 1986</i> (commonly known as Assembly Bill 2020 or AB 2020), aims to achieve a recycling rate of 80 percent for all aluminum, glass, plastic, and steel beverage containers through the use of economic incentives. A critical component of the California program is the certified recycling centers created by AB 2020. Prior to the passage of AB 2020 in 1986, there were approximately 463 recycling centers operating in California. Enactment of AB 2020 produced a significant number of new recycling centers so that by the latter part of 1990, the total number of recycling facilities had risen to approximately 2,483. This article addresses the costs, inefficiencies, and problems associated with the certified recycling centers (CRCs). It compares the effectiveness of the older recycling centers, which existed prior to the enactment of AB 2020, with the effectiveness of the new certified recycling centers which have arisen as a result of AB 2020. Effectiveness is evaluated on the basis of volume of material recovered, recycling rates, operational costs, and eligibility for state subsidies. The article concludes that the current CRC system is seriously flawed and has the potential to seriously undermine the state's recycling efforts. M. Naughton, F. Sebold, and T. Mayer, The Impacts of the California Beverage Container Recycling and Litter Reduction Act on Consumers, <i>Journal of Consumer Affairs, 24</i>:1, pp. 190-220, 1990. California Department of Conservation: Division of Recycling, <i>Beverage Container Recycling: The California Experience</i>, Resource Paper, pp. 1-9, 1991. <i>California Beverage Container Recycling and Litter Reduction Act</i>, (AB 2020, Chapter 1290, Statutes of 1986), 1986. California Department of Conservation: Division of Recycling, <i>Convenience Zone Effectiveness Study</i>, Volume 1, June 1991. California Department of Conservation: Division of Recycling, <i>Biannual Report of Redemption and Recycling Rates, July 1, 1990-December 31, 1990</i>, pp. 1-39, 1991. California Department of Conservation: Division of Recycling, <i>Report on Curbside Recycling</i>, pp. 1-41, January 1990.