In this paper we consider an endogenous growth model involving, among other inputs, a renewable resource and secondary materials. Using this analytical framework we explain the effects of waste recycling on the growth rate of the economy, that we take into account. The effects of secondary materials production on the utility and dynamics of renewable resources are also studied. Furthermore, we consider how taxes and subsidies, levied on natural resources and granted for secondary materials, influence the dynamics of the economy during the transitional phase and the stationary growth path. Finally, the validity of Hotelling’s rule and the effects of waste recycling on labor productivity are the conclusive topics of our research.