I think in Paris (?) they have some underground storage for recycling on street corners. Someone was telling me about that when I was there.
In New Zealand (and some other places), garbage is put out in plastic bags - only official bags are picked up - and you pay per bag used.
Incentives to minimise hard-to-recycle waste could be a good thing.
Where I live in California, we are given a large recyclables bin and a small trash bin, with the option to pay more for a larger trash bin. This sounds like an incentive to recycle, but it's a perverse one. If I were to just put all my trash in the recycle bin, there would be no consequences at all for me, because the recyclables truck just dumps it all into a big communal heap, with no possibility to trace it back to me. Is this cardboard too wet to recycle? Who knows? In it goes!
No it doesn't. I live in so-called 'progressive' Holland where separate waste collection has been done for years. It's not efficient now any more (in 2013 we have better waste separation methods as was had in the 1990's) but people have become conditioned to 'separating waste = green' that it's hard to reverse now. Plus, the whole infrastructure exists now anyway, so the switching costs would take another decade to make back - an investment for which there is simply no room in these times.
It's an interesting question, and very difficult to answer. Like climate studies, you'd need to calculate so many side effects, that your answer might be different depending on the context you take into account. I've discussed this topic quite extensively with colleagues in urban planning and environmental sciences in countries across the world, but nobody knows (obviously) and people's preferences tend to align with what they have or have worked on. Personally I tend towards the automated / technology solutions (i.e., centralized), but I can't tell if that's because of a cognitive bias or from an increased ability in estimating these sort of things from experience, so that basically nullifies my opinion, too.
It's water under the bridge anyway.
It would sure keep it in the forefront of my mind, but not in the way I think you'd like! More: "How can I get rid of the politicians who force me into this menial waste of time?"
I will happily pay in taxes whatever the added processing costs are for allowing me to continue to use Cambridge's terrific "single stream" system, which allows for an astonishing range of waste in a single bin. It doesn't cover the hazardous stuff like batteries and CFLs, but you can make that easier, too, without requiring individuals to maintain bins for 5 different varieties of plastic.