Importance of Recycling
I still remember the old cartoon 'Captain Planet' endorsing the trinity of 'reduce, reuse and recycle'. Here's an article on the importance of recycling and the benefits of recycling.

What is Recycling
Recycling is the process of reusing the items from which utility can still be derived. For example, it isn't possible to recycle food, as once we have consumed it, it can be put to no other use. But items made from plastic, steel and glass, if still in a condition where they can be used, can be used as raw materials for a lot of new products.
To explain in short the benefits of recycling, I would like to give the example of paper. We all know that a lot of trees get cut down each year to produce the paper we need for various purposes. Of course, trees are a natural asset, and hence, need to be preserved from deforestation. Hence, people are calling for recycling the paper that is in perfect condition. Hence, today we get notebooks and paper bags made from recycled paper. They come at a price, yes, but the question we need to ask ourselves is that is it a price higher than what we would have to pay should our trees go? Then suddenly everything falls into perspective.
Reasons for Recycling
Saving Resources
It is always good to reuse metal items as the metal reserves may be depleting. Even the metal object which you think is woefully useless and rusted, can be revamped and resold, and you can hardly tell the difference. Recycling paper, like I said, is that it can help save our forests.
Saving Energy
Confused? Recycling materials not only saves resources, but can also help save energy. When we throw out something we have labeled useless, we throw out a processed product. Suppose you have a rusty, broken door knob. There was obviously some time, energy and people involved in the process that made processed metal and turned it into a doorknob. By simply recycling it or make some basic fixes to it, we save all the energy that would have been consumed in the process of making it. Same with plastic items. A lot of energy can be saved by simply reusing the plastic items.
Reduce Pollution
Say everyone decides not to recycle plastic. Then the plastic-making factories will be running full steam ahead. And by steam I mean smoke. If the production increases, the air pollution too will increase. And the factories that have not invested in a pro-environment waste disposal system will ruin our atmosphere. These who have liquid waste emissions without a waste water treatment system, will cause water pollution. Hence indirect as it may seem, if recycling helps cut down our production, it will help reduce emissions as well.
Other Benefits
Well I said before that food cannot be recycled, but the excreta can. Biomass can be used to produce energy as well as fertilizers. Think of all the money you'll save on fertilizers if you just had a simply collect the biomass somehow and put it to good use!
Are there any negative effects of recycling? The only one which I see is that if the recycling system in place is haphazard or isn't properly managed, all the stuff will just get wasted and we won't realize the full benefits of recycling. Needless to say, we can correct those too by giving it a little more attention.
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