California investigates recycling fraud
Wednesday, October 10, 2012 - 11:05:18
Over in the US, people who live in the state of California can actually get cash back when they take their old drinks cans and plastic bottles to be recycled, as part of efforts to reduce the amount of rubbish that is sent to landfill.
However, at 5 cents (3 pence) a pop, the scheme is actually proving to be a lucrative setup for people who are willing to illegally exchange bottles and cans that are brought from outside of California.
It is estimated that California is paying out $200 million ((125 million) to fraudsters, who bring in truckloads of recycling from states that do not offer cash for used cans and bottles.
People who buy a bottle or can of drink in California will effectively be paying a deposit on it at the point of sale, which is put in place so that they are encouraged to then recycle it and get their money back.
But since cans from outside of California do not have the same deposit in place, it is possible for people to illegally truck them in and make 5 cents on every item.
This fraud has been discovered because California recycles 98 per cent of bottles and cans sold, but in some cases, it is actually recycling more than have been produced for the state.
While the authorities running the scheme believe that the actual amount claimed fraudulently for recycling each year is closer to $40 million ((25 million), this is still a big chunk of cash.
This is a tricky situation, since incentivising recycling has a positive effect on the environment and you have to establish whether or not a certain amount of fraud can be tolerated, if the benefits outweigh the negative aspects of this particularly complex set of circumstances.
Latest News
Wednesday, May 13, 2020 - 10:32:41
Every industry around the world has been impacted by the ongoing coronavirus pandemic, and recycling has been especially affected as a result of force [...]
Read More
Wednesday, May 6, 2020 - 21:33:36
Apple has pulled back the curtains on the all-new iPhone SE, bringing with it a raft of eco-friendly design features which aim to improve the green cr [...]
Read More
Wednesday, April 29, 2020 - 21:32:00
Researchers from New Zealand have demonstrated a new recycling solution which could help companies to reclaim rare materials from smartphones, PCs and [...]
Read More