But the problem of separating polystyrene from other waste materials in municipal trash has limited recycling to a few demonstration projects.
The state is developing new regulations to meet the court's ruling, which affects curb-side municipal trash.
Today's landfills for municipal trash are filled mostly with innocuous materials like paper, yard waste and construction debris.
If both are to be used and discarded in municipal trash, there is little difference.
Under its latest solid-waste disposal plan, the Dinkins administration proposes burning 68 percent of its municipal trash.
The sale of the recycled municipal trash, even at current low prices, can help offset the cost of separating and hauling it.
The group said it was focusing on paper because paper products make up one-third of all municipal trash.
It said it hoped the commitment would encourage wider collection of used bottles from municipal trash by providing an assured market for the recycled product.
Clearly, political pressure is growing to increase recycling, particularly of paper, which is the single biggest constituent of municipal trash.
Official records reveal that mass-incineration costs more than $90 a ton, while recycling is about $10 a ton for municipal trash.