britexpat - think thats an eco-myth. If you incinerate it at too low a temp you can get dioxins coming from incinerators or "energy from waste' plants as they are now PC termed.

Usign the bottles in the way mentioned, is how they are used in west but the water system isn't of good enough quality or trusted publically.

Better that it is collected centrally, sorted, shredded and made into other products.

Visit any beach and you can see that people cant even put stuff in bins, so getting them to recycle!