For plastic products manufacturers, the chief concern is cost of materials. They have to determine if it's cheaper to recycle or to buy new from a petroleum refiner. Economists have researched this area extensively. According to Mario Flores, undergraduate researcher at the Georgia Institute of Technology, competition exists between recycled and new plastic. In 2011, recycling is very inefficient. Only about 25 percent of all plastic products are recycled. This is due to society not having the resources to recycle. Another reason is that it is more expensive to recycle than to use new plastics.
Plastics are a known polluter since they are not biodegradable. In Europe, regulations are in place to prevent the excessive disposal of plastics. For example, all cars have to be recycled. In January of 2006 laws were passed concerning old cars. No more than 15 percent of an old car can end up in a landfill. By January of 2014, no more than 5 percent can go to a landfill. Car manufacturers account for this and design cars with plastics that are easily recycled. As of early 2011, no regulations like this are in place in the United States.
Entire volumes have been written on the economics of petroleum. The key understanding, however, is that plastics are made from petroleum. Whatever happens to the price of petroleum happens to the price of plastics. If petroleum prices go up, plastics prices go up. This has an effect on the price of the end product. For example, many foods and drinks are stored in plastic bottles. The manufacturer has to adjust prices due to plastics cost. This price adjustment is passed on to the consumer.
In 2003, Dow Chemical Co. and Cargill started investigating whether to make biodegradable plastics from corn. This has diverse outcomes. Because petroleum prices are increasing, making plastics from corn is cheaper. This also reduces the United States' dependence on foreign petroleum imports. Second, the plastic itself is biodegradable. This means is it a non-polluter and will eventually become base minerals in a landfill. All this, however, affects the price of corn. Since the demand for corn is greater, corn prices will be affected. Furthermore, farmers may not be able to grow the amount of corn needed to meet increased demand.