The model indicates that there would be mutual gains from the trade of material from the informal and formal sectors because of their comparative advantages. It also enhances the social welfare among the stakeholders due to the interaction between the formal and informal sector. The integration would result in reduced pollution, better resource management and creation of green jobs in the recycling sector. This integration of Informal and formal is applicable to any post consumer waste recycling activity.
5. Conclusions
Since most of the recycling activities in India and other developing nations are carried out in the informal sector, integration of the activities in the informal and formal sectors is essential to provide a sustainable system for the management and recycling of wastes in the developing economies. The dovetailing of the activities of the informal and formal sectors so as to achieve an optimal solution to recycling practices without compromising on the environment, health and safety is a mutually beneficial and economically viable proposition. The process of integration and involvement of the different stakeholders needs a convincing approach. In order to make the system effective it should be supported by the policies and regulations governing these activities.