It really depends on what kind of product you’re talking about. Plastic lumber made from milk jugs is often more expensive than treated wood, but there’s a good chance the plastic will last longer (not to mention you won’t have to pay to repaint it). Half of the time, consumers wouldn’t know if a product they are buying was recycling or not.
First, often it costs more energy to recycle something as opposed to just digging it out of the ground, chopping down a tree, etc. This naturally causes higher prices for recycled materials.
The second reason is that “going green” is becoming very popular and is a relatively new market. This means that it is not affected greatly by competition keeping prices down. Because it is popular, prices for recycled materials and other green products can be set higher than products that have to worry about their competition.
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