@Simpleton—
Recycling consumes resources, and thereby creates an environmental load, which is often greater than that of burying or incineration. A few things, such as steel and aluminum cans, do recycle well; most garbage really does not. The Japanese seem to make comparatively reasonable decisions about what things to burn, rather than to recycle.
That damn'd bear does not have title to Ponko's body! If the body is not recovered, then the debt of the bear is increased, and by far more than the 500 yen coins that would come from the conversion. Plainly the old man values her far more than he does the coins, even if he is loath to admit as much. (Also, there are many people in the village who would pool their funds to buy Ponko, if that were necessary to prevent conversion; and, likewise, they would be willing to pay a premium.)
That bear better wise-up!