A ban would result in the removal of all plastic bags and prohibit retailers from distributing them (Environmental Protection Authority, 2016). Since the plastic bag ban was introduced in South Australia in 2009, over 400 million bags have been removed from the economy each year and there has been a 45% reduction in HDPE bags in waste streams (Wildlife Queensland , 2015). A ban would also benefit food prices, as the current cost of 2-3 cents per plastic bag would no longer be distributed among goods by retailers (Environment Victoria, 2010). However, from an economic point of view it is argued that eliminating plastic bags is inefficient as the total cost would be greater than the total benefits (Clapp & Swanston, 2009, p.321). A tax is an effective policy that can be imposed to reduce plastic bag consumption in Australia. While a tax will not completely eliminate plastic bags, it will correct the market failure and establish an efficient market equilibrium. An alternative policy such as a plastic bag ban, if adopted, would significantly reduce the amount of bags in circulation, however it is perceived as economically inefficient as the costs outweigh the benefits. However, both proposed policies would reduce the impact on environmental impact and social costs incurred