Economic instruments for reducing the use of plastic bags in the state of Pará, Brazil

The state of Pará has prohibied the sale and distribution of conventional plastic bags to mitigate their socio-environmental impact. This article aims to suggest economic incentives to assist State Law 8902/2019 in diminishing plastic bag consumption. This study employed the SWOT Matrix analysis to develop two economic instruments based on the externality precepts defined by Arthur Pigou and Ronald Coase. The initial proposal, derived from Pigou, involved of a “tax exemption for plastic recycling enterprises”, whereas the subsequente proposal, based on Coase, stipulated “offering discounts to customers who refrain from utilising plastic bags”. Both instruments demonstrated potential for yielding favorable outcomes when integrated with Law 8902/2019; nevertheless, their efficacy relies on an effective selective collecting system and the advancement of environmental education.